MemeFi (MEMEFI) has displayed a remarkable increase of 312% over the past week. This surge occurs against the backdrop of an upcoming delisting from Binance, which raises concerns among analysts.
Dramatic MemeFi Rally
This week, MEMEFI recorded one of the most significant rallies, achieving a 312% increase. The market at large regards this growth as risky with the potential for a sharp correction. MEMEFI rose to $0.005, a level not seen since May, right after Binance announced its delisting.
Open Interest and Trading Activity
The open interest in MEMEFI reached an all-time high of $36.92M. However, the derivatives market remains tense as traders open short positions, constituting 54% of the total volume. This led to $1.28M in short liquidations on Binance in the final hours of trading before the delisting. Given the low liquidity in the market, the price could fluctuate significantly.
Future Prospects of MemeFi
The MEMEFI rally has also drawn attention to the development team, who announced an app upgrade slated for the end of August. However, current market conditions deem the asset extremely risky, particularly for derivative trading. The demand for MEMEFI is primarily tied to the need to cover short positions, and there is a currently low interest in the underlying game.
Despite the recent increase in MemeFi, numerous factors indicate high risks and potential downturns. The future of the project hinges on the success of the app upgrade and the return of interest in blockchain-based gaming.
