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According to on-chain analytics platform Glassnode, frog-themed cryptocurrency PEPE has seen a major deleveraging as Futures Open Interest across the meme coin sector has dropped significantly since their peaks.
Recently, a trend has emerged among meme coins, with open interest cooling off following speculative peaks. The trend is clear: open interest has sharply corrected across meme coins. This can point to leverage flushing out but also signal a shift in sentiment across the meme coin sector.
Frog-themed meme coin PEPE has seen its price drop by 42% monthly and experienced a major deleveraging, with its futures open interest plunging by 71.93% — falling from $1.25 billion to $351 million.
The meme coin sector, in general, is undergoing a significant shift, with futures open interest (OI) sharply contracting after reaching speculative peaks. This trend is reflected in other meme coins such as SHIB, DOGE, WIF and BONK.
Tomiwabold OlajideAt the height of the speculative frenzy, meme coins saw skyrocketing trade volumes and massive leveraged holdings. However, recent data shows that this exuberance is cooling off. The substantial drop in futures open interest across the sector indicates that traders are stepping back, reducing their exposure and flushing out excessive leverage from the market.
PEPE down 42% monthly
After a stellar surge in late 2024, PEPE is now facing a harsh reality. The token has experienced a steep 42% drop over the past month, mirroring a broader correction in the often volatile meme coin sector.
Godfrey BenjaminAt press time, PEPE was down 2.29% in the last 24 hours to $0.0000092 and down 0.09% weekly.
PEPE has steadily declined since reaching an all-time high of $0.000028 on Dec. 9, 2024, and is now down 66.5% from this peak. PEPE declined all through January, dropping for four consecutive weeks at a stretch.
Bears took a breather in the past week, with PEPE ending the week in the green, but the drop has now resumed, with PEPE down this week. Eyes will be on recovery for the PEPE price beyond the daily SMA 50 at $0.00001453 to ascertain a price comeback.
Dan Burgin
Vladislav Sopov