jakiro
Written by: DaFi Weave, BlockTempo
After the Trump team issued $TRUMP, Trump’s wife’s $MELANIA and the Central African President’s $CAR were also launched one after another. The most controversial one now is the Argentine president’s $LIBRA, which seems to have become the fuse that crushes the hype sentiment of meme coins.
As more and more meme coins become profitable tools for internal traders and rat trading, scandals in the meme coins market continue to intensify, and the price trend is generally manifested as a crash after a surge, and market speculation enthusiasm begins to cool down.This trend is also reflected in the price of Solana (SOL), the meme coin base camp.
SOL falls to $174
According to Binance Spot data, SOL fell from $186.94 to a low of $174.63 last night, and rebounded slightly to $178.05 before press time, down 4.4% in the past 24 hours, making it the worst performing token among the top 30 currencies in market capitalization.
Trader Tyler tweeted that “the market is releasing its anger at Solana.” He quoted data from Binance’s perpetual contract that the short-to-long ratio has risen to 4:1, reflecting the market’s apparently high bearish sentiment towards Solana.
Who harvested the Solana meme currency market?
The Solana meme currency market has been “squeezed” billions of dollars by various institutions, trading robots, and insiders.
According to statistics from DeFiLlama founder 0xngmi, the total amount of revenue obtained by different participants from the Solana meme currency market is as follows:
-
Trading Robots and Applications: $1.09 billion
-
Pump.fun Platform: $492 million
-
MEV (maximum extractable value): USD 1.5-2 billion
-
Trump-related insiders: $500 million to $1 billion
-
Other insiders: Unknown
-
AMMs (automatic market makers): $0-2 billion
He said that there are more than $3.6 billion in total.This also reflects the high speculative nature of the meme currency market, and many returns are not enjoyed by ordinary investors, but are seized by high-frequency traders, arbitragers and insiders.
Analyst: ETH/BTC may have bottomed out
As Solana suffers from a meme coin, the market seems to be starting to turn its attention to Ethereum. Zhu Su, founder of Three Arrow Capital (3AC), tweeted yesterday that it is time to buy Ethereum in full.
Aran Hawker, CEO of trading automation platform CoinPanel, told CoinDesk that Ethereum’s recent rise is not a real excess performance, but more like a price return to its due level. He further stated: Some traders may turn their funds from SOL back to ETH, but the marketThe trend and structure have not changed significantly. If this wave of rise encounters major market changes, it is likely to be erased quickly.
However, LMAX Group market strategist Joel Kruger is more optimistic, believing that this may be a sign that ETH’s years-long depreciation trend towards BTC is about to end.He said: The ETH-BTC ratio has continued to decline since 2021, but may be bottoming out at the moment.We should pay close attention to the monthly highs of ETH/BTC, and if it is successfully broken, it will strengthen the possibility of a trend reversal.
Before press time, the ETH/BTC ratio was temporarily reported at 0.0282, down 1.78% in the past 24 hours, at a low point since the end of 2020.
In addition, according to CoinGlass data, market interest in ETH increased significantly yesterday (17), with the total number of open futures contracts growing by 12% in 24 hours to approximately US$2.6 billion, mainly from Binance and Gate.io, andBTC futures open contracts rose only 1%, indicating that funds flowed to ETH.
However, before press time, Ethereum has fallen back from yesterday’s US$2,849.7 to US$2,703.91, with a cumulative decline of more than 5%. Ethereum’s future price trend still needs to be closely observed.
