$PEPE is vigorously leading the market back to a high-risk appetite. As the whole market establishes a bottom (with Bitcoin reclaiming the $60,000 mark), capital is frantically flowing into high beta assets. $PEPE just recorded a massive price increase of 29.3% to $0.00000493, bolstered by a 283% explosion in trading volume over 24 hours (reaching $1.07 billion).
🔹 Whales & L1
Surprisingly, this strong upward trend lacks a specific fundamental catalyst. Instead, it is entirely driven by momentum, discussions on social media, and an increase in activity among creators (up 17.08% weekly) that helps bolster retail participation.
Whales have eagerly entered, accumulating trillions of tokens to leverage liquidity and shape the direction of the order book early on.
While memecoins and sectors like AI (+3%) or Gaming (+6%) are experiencing modest recoveries, major L1 networks are stuck around 0%. Capital is shying away from L1 due to dilution stories and massive supply pressure, preferring the ultra-fast liquidity rotation of meme assets.
🔸 Open Contract Re-establishment
The open interest (OI) of PEPE has steadily climbed from below $200 million to the range of $600 - $800 million, even briefly touching nearly $1 billion at the peak of speculation.
After forced liquidations and profit-taking, OI has shrunk to the range of $300 - $400 million. However, it is currently being rebuilt and surpassing $400 million, reflecting cautious optimism and traders' readiness to reprice high-risk stories upward.
🔹 Speculative capital has returned, and memecoins are the undeniable leaders.
Risk Acceptance Direction / High Beta Coefficient Expansion.
PEPE solidifies its role as a gauge of sentiment across the board, pulling neighboring memecoins into a strong recovery (industry index up 28%). However, sustainability completely depends on maintaining trading volume. If the inflow remains stable, the upward trend of memecoins will continue; if liquidity rotation fades, prepare for a quick exhaustion of rotation.
PEPE witnessed trading volume exceeding $1 billion in just one day, while major L1s remain stagnant. Are you riding the memecoin wave, or waiting for capital to flow back into fundamentally sound altcoins?
News and research information from Trading Insight is for reference only and should not be considered investment advice. Please read carefully before making any decisions.
