Need evidence of speculator fervor. Look no further than the classification of Corklass Crypto derivatives, which shows that Fartcoin (Fartcoin), the same, based in Solana, is now the 10th largest token based on an open interest of derivatives.
During the editorial staff, the notional open interest in the term contracts linked to Fartcoin has totaled more than a billion dollars, placing the joke cryptocurrency in front of well-established pieces, such as Litecoin (LTC), the link of Chainlink (Link), the Avalanche Avx (Avx) and several others.
The other tokens play a central role in decentralized finance (DEFI), blockchain oracles and payments. The notional open interest refers to the value in dollars locked in the number of derivative contracts open or active at a given time.
What is more alarming is that Fartcoin’s open interest is now equivalent to 65% of its market capitalization of $ 1.62 billion. By market value, Fartcoin ranks 83rd in the world. Meanwhile, the open interest of $ 84.7 billion in Bitcoin derivatives represents only 3.5% of the market value of the main cryptocurrency of 2.36 billions of dollars.
The unusual open interest in Fartcoin in relation to its market capitalization indicates an accumulation of speculative excess generally observed during the Bulls of the crypto market, which pushes retail investors to take significant risks in cheaper tokens.
A similar trend is observed in other smaller parts, according to the data followed by Alphracttal.
“Since the first 300, open interest becomes disproportionately compared to market capitalization – a strong risk signal. What does that mean?
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