Reduced Leverage Drags Altcoin Trading: Meme Tokens Bear the Brunt

Reduced Leverage Dampens Altcoin Trading as Meme Tokens Bear the Brunt

The cryptocurrency market has undergone a noticeable shift this week, with a sell-off leading to a decline in the open interest-to-market cap ratio for many altcoins. This indicates reduced leverage and trading activity in the altcoin market, reflecting a growing sense of caution among investors.

Meme tokens, including Bonk (BONK), Dogwifhat (WIF), and Dogecoin (DOGE), have faced the brunt of the downturn, experiencing substantial declines in their market metrics.

Following this week's selloff, the open interest-to-market cap ratio has dropped for most altcoins, indicating lower leverage. Meme tokens, such as BONK, WIF, and DOGE, have seen the most pronounced declines.

BONK Faces Bearish Momentum

BONK (BONK) has experienced a 2.81% price drop in the last 24 hours, currently trading at $0.00003862. The token's market cap has fallen by 2.77%, now standing at $2.92 billion.