Crypto investors flock to PEPE, WIF, Here’s why they’re winning big

The Rise of Meme Coins: PEPE and WIF Surge to Prominence

The current bull market has witnessed a surge in the popularity of meme coins, with Pepe (PEPE) and Dogwifhat (WIF) leading the charge with impressive gains. Within a year of its launch, PEPE has ascended into the top 20 cryptocurrencies by market capitalization. It has registered an astounding 1166% increase year-to-date (YTD), while WIF has soared by an incredible 2200% during the same period.

Meme Cryptos Dominate Crypto Leverage Market

The growing interest in meme coins is evident in the crypto leverage market, where traders speculate on their price movements. Notably, four of the top 10 cryptocurrencies by open interest (OI) are meme coins. Pepe leads the pack with $812.6 million in OI, which is nearly half of Solana's $1.7 billion.

Dogecoin and Bonk Join the Meme Coin Tally

In addition to Pepe, other meme coins such as Dogecoin (DOGE), Bonk, and Dogwifhat (WIF) have also made their mark on the OI leaderboard. However, Bitcoin (BTC) maintains its dominance with $11.1 billion in OI, followed by Ethereum at $9.15 billion.

Bullish Momentum Drives OI Surge

The recent surge in OI for meme coins is attributed to their bullish momentum over the past few weeks. PEPE's price has appreciated by approximately 120% in the last 30 days, setting a new all-time high. WIF has also reached a multi-week high above $3.30.

Funding Rates Remain Negative Despite OI Growth

Despite the price and OI surge for meme coins, funding rates have remained negative across crypto exchanges. Funding rates reflect the cost of holding a position in a perpetual swap or futures contract relative to the asset's spot price. Positive funding rates indicate bullish market sentiment, while negative rates suggest bearish sentiment.

Solana Validators to Receive More SOL Tokens

In related news, Solana validators are set to receive increased SOL token rewards following the approval of a governance proposal that allocates 100% of priority fees to them. This proposal passed with 77% in favor and aims to incentivize validators to maintain network security and smooth operations.

New Model to Eliminate Side Deals and Strengthen Validator Incentives

Previously, half of the fees in priority transactions were burned, while the other half went to validators. The new model, introduced as Solana Improvement Document number 96 (SIMD-0096), is designed to eliminate "side deals" and provide stronger incentives for validators.