The upcoming PUMP token’s pre-market perpetual contracts have gained high demand across several major crypto exchanges, reaching $120 million in open interest. The token is set to launch on July 12.
According to data from CoinGlass, the meme coin launchpad’s native token has already garnered high traction from traders. Although it has not officially been launched on the market, its pre-market perpetual contracts have reached $333.17 million, soaring by as much as 376.93% in the past 24 hours of trading.
The majority of PUMP perps volume comes from Binance, which represents $204.75 million of the total on-chain volume. the decentralized exchange Hyperliquid is the second largest contributor, with a pre-market volume that stands at $115.4 million.
The perpetual contract for the long-anticipated token has even reached $120.12 million in open interest. Unlike the perps’ volume, most of the Futures Open Interest for the token comes from Hyperliquid with an OI of $81.9 million, representing nearly 70% of the total open interest.
The spike in futures open interest occurred exactly one day before the token is set to debut on the crypto market on July 12.
What does a high open interest mean for PUMP?
Open interest is a metric that is used measure the number of outstanding futures contracts deployed on exchanges. A token does not particularly have to be on the market in order for traders to set perpetual contracts. Open interest is often used as an indicator for how much demand there is for an asset.
Therefore, a large volume and open interest in PUMP’s perpetual contracts suggest strong speculative interest, even before the token launches on the market. This means that a large number of traders are betting on what the price of PUMP will be upon launch.
However, a high open interest could also mean that there’s a high chance for volatility on launch day. If the price dips even slightly less than the perpetual contracts set by traders, many long positions could get liquidated. This could trigger a major price correction for PUMP.
According to the long sentiment data on CoinGlass, the projected price for the token is $0.0052, which is around 30% higher than the initially set pre-sale price for the token.
As previously reported by crypto.news, the meme coin launchpad Pump.fun will launch its native token PUMP on July 12 with an initial coin offering 15% of the total token supply, which is around 150 billion tokens. Each token will be valued at an initial price of $0.004.
