The Solana-based AI and meme token PIPPIN has surged to a new all-time high, sparking intense speculation and concern over a potential sharp correction. The token's price expanded above $0.32, ultimately reaching approximately $0.35 on decentralized exchanges, surpassing its previous peak of $0.24 set during the initial wave of enthusiasm for AI agent tokens.
The rally has activated derivative markets, with PIPPIN's open interest soaring to $135 million, led by a significant spike in volumes on Binance Futures, with contributions from OKX and Zoomex. Notably, over 72% of all position holders are now shorting PIPPIN, a risky bet that could fuel further volatility. Funding rates on Binance have turned deeply negative, reflecting this bearish sentiment.
On the liquidity front, PIPPIN relies heavily on Raydium and Gate.io. Its share of volume on Raydium increased to 31%, with a slight price premium up to $0.35, making it the most actively traded token on the platform as of December 10. The main Raydium pool holds $12.5 million with 44 liquidity providers. Whale activity is pronounced, with one leading whale locking in $7.6 million in realized gains from the token.
Despite the price pump, which saw a 1,600% increase in mindshare during an 835% rally, fundamental concerns persist. The project is criticized for lacking real innovation and relying on its meme status. The token's market cap is estimated at $319 million, but the absence of institutional backing raises questions about its sustainability. The rally follows a broader trend of older meme and AI tokens, like POPCAT and FARTCOIN, reawakening.
Adding to the speculative frenzy are rumors of a potential Binance listing and the spread of scammer bots promoting a false airdrop claim page. Analysts warn that the high leverage and speculative activity mirror patterns seen in previous meme tokens like Dogecoin and Shiba Inu, which often experienced rapid rises followed by dramatic declines.
