After Trump's team issued $TRUMP, Melania Trump's $MELANIA and the President of Central Africa's $CAR were also launched successively. The most controversial one now is Argentina's President's $LIBRA, which seems to have become the fuse that collapsed the meme coin hype.
As more and more meme coins have become tools for internal traders and rug pulls to profit, the scandals in the meme coin market have been escalating, with prices generally showing a pattern of skyrocketing and then crashing, and the market's speculative enthusiasm beginning to cool. This trend is also reflected in the price of Solana (SOL), the headquarters of meme coins.
SOL Drops to $174
According to Binance spot data, SOL has dropped from $186.94 last night to a low of $174.63, and has rebounded slightly to $178.05 as of press time, down 4.4% in the last 24 hours, making it the worst performing token among the top 30 coins by market cap.
Trader Tyler tweeted that "the market is unleashing its fury on Solana." He cited data from Binance's perpetual contract, which shows that the ratio of short positions to long positions has risen to 4:1, reflecting a clear bearish sentiment in the market towards Solana.
Who Harvested the Solana Meme Coin Market?
The Solana meme coin market has been "squeezed" of billions of dollars by various institutions, trading bots, and insiders.
According to statistics from defillama founder 0xngmi, the total profits obtained by different participants in the Solana meme coin market are as follows:
· Trading bots and applications: $1.09 billion
· Pump.fun platform: $492 million
· MEV (Maximum Extractable Value): $15-20 billion
· Trump-related insiders: $5-10 billion
· Other insiders: Unknown
· AMMs (Automated Market Makers): $0-20 billion
He said the total is over $36 to $66 billion. This also reflects the high speculative nature of the meme coin market, where much of the profits are not enjoyed by ordinary investors, but are seized by high-frequency traders, arbitrageurs, and insiders.
Analyst: ETH/BTC May Have Bottomed
As Solana has been hit by the meme coin storm, the market seems to be shifting its attention to Ethereum. 3AC founder Zhu Su tweeted yesterday that it's time to go cross margin on Ethereum.
Aran Hawker, CEO of trading automation platform CoinPanel, told CoinDesk that Ethereum's recent rise is not a true outperformance, but more like a price return to its proper level. He further stated that some traders may be shifting funds from SOL back to ETH, but the market trend and structure have not changed significantly, and this rally is likely to be quickly erased if the market sees major changes.
However, LMAX Group market strategist Joel Kruger is more optimistic, believing this could be a signal that the years-long downtrend of ETH against BTC is about to end. He said: The ETH/BTC ratio has been declining since 2021, but it may now be bottoming out. We should closely monitor the monthly highs of ETH/BTC, and if it successfully breaks through, it will strengthen the possibility of a trend reversal.
As of press time, the ETH/BTC ratio is temporarily reported at 0.0282, down 1.78% in the last 24 hours, at its lowest level since late 2020.
In addition, according to CoinGlass data, market interest in ETH has risen significantly yesterday (17th), with the total open interest of futures contracts growing 12% in 24 hours to around $2.6 billion, mainly from Binance and gate.io, while BTC futures open interest only grew 1%, indicating a flow of funds into ETH.
However, as of press time, Ethereum has fallen back from yesterday's $2,849.7 to $2,703.91, a cumulative drop of over 5%, and Ethereum's future price trend still needs to be closely watched.
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