Pepecoin And Doowifhat: Memecoin Dominate Derivative Markets, According To Kaiko's Report

PEPE and WIF memecoins. (Photo; Doc. CoinDCX)

JAKARTA - Meme coin aka meme coins with real utility aimed at entertainment alone has succeeded in stealing the attention of traders. Unlike the main altcoins that have stagnation, two meme coins, Pepecoin (PEPE) and Dogwifhat (WIF), have actually shown extraordinary performance. This was revealed in a recent report from Kaiko, a well-known blockchain analysis platform.

The report shows that PEPE and WIF occupy the leading position in the use of leverage in the altcoin sector. Open interest ratios to market caps, key indicators for measuring leverage, show that these two meme coins have twice the ratio compared to other altcoins. That is, price movements for PEPE and WIF are highly concentrated in the perpetual market futures, where traders use leverage to increase profits (or losses) from their positions.

The dominance of PEPE and WIF in the leverage altcoin market is not without reason. This year, both recorded a fantastic price increase, namely 510% for PEPE and 1,880% for WIF. This increase brought them into the ranks of 40 largest altcoins based on market caps, an unusual achievement for meme coins that are often viewed as speculative and have no fundamental value. In comparison, the market caps WIF and PEPE are even larger than the native tokens of the blockchainlayer-2 Ethereum, except MATIC from Polygon.

The tremendous increase in PEPE and WIF in the leverage altcoin market shows that speculation and market sentiment still play an important role in the movement of altcoin prices. Amid the main altcoin stagnation, traders appear to be turning to meme coins that offer huge profit potential, despite the higher risk.

Other Coin Meme And Altcoin Trends To Pay Attention To

Apart from PEPE and WIF, Kaiko's report also highlights several other interesting altcoins to observe:

The development in the altcoin market, particularly the trend of coin memes and the use of leverage, shows the dynamics and complexity of the crypto industry. For traders and investors, it is important to understand the factors that encourage the movement of altcoin prices and carry out careful analysis before making investment decisions.