Over the past seven days, the two best-performing assets have been GALA and LDO, which are up 169% and 77% respectively. Much of these returns are the result of a weekend pump where GALA and LDO rallied 77% and 67% respectively.
The rally is likely the result of a short squeeze instead of an organic increase in demand. The funding rates for both tokens were negative with traders with short positions paying 0.65% for LDO and 0.85% for GALA every eight hours.
Generally, such aggressive positioning is “hunted” – a practice where market participants attempt to push the price of an asset to levels where traders are liquidated and forced to close positions.
The open interest (OI) for both tokens also dropped significantly with OI for LDO decreasing from a high of $100M to $60M and OI for GALA decreasing from a high of $176M to $133M.
LDO has also benefitted from a narrative-backed trend in tokens associated with liquid staking derivatives.
And GALA recently actively widen the area of business including music, web3 movie that offer a variety of NFT items to users and node operators trying to get back users' trust.
Source: Delphi Digital