Data from tracking tools show that volatile trading on futures tracking the tokens of Dogecoin (DOGE) and ApeCoin (APE) resulted in millions of dollars in losses due to liquidations. DOGE futures have lost more than $22.65 million ( R 358m) in the last 24 hours, while APE futures have lost more than $11.77 million( R 185m). The numbers were greater than on other days, according to the data.
Shorts, or traders betting against increased prices, accounted for 68.9% of the DOGE losses. Prices have risen to $0.17( R2.69) from Monday’s low of $0.12( R 1.90), and are still 32% higher than yesterday.
DOGE’s price spike appeared to occur primarily in the hours leading up to the announcement of Tesla CEO Elon Musk’s $44 billion (R 696bn) acquisition of social media giant Twitter.
Although there is no clear correlation between the two events, some market experts believe Musk may use his clout to have DOGE accepted as a payment mechanism on Twitter. Tesla already takes the meme coin as a form of payment for its products.
Short trades cost $7.9 million ( R122m) in losses for APE futures, accounting for 67 percent of the total.
On Monday, APE was trading at $17 ( R 269) in European afternoon hours, before jumping to nearly $20( R316) in early Asian hours today. Since then, prices have fallen back to $17.88 ( R283). The spike in APE pricing occurred as the community explored staking features for the Bored Ape Yacht Club ecosystem’s native coin, a collection of 10,000 NFT Apes that has grown in popularity and market capitalization over the past year.
The benefits of allowing users to stake APE and use the Bored Ape Yacht Club ecosystem NFTs to get APE payouts from a predetermined pool over a defined period of time are weighed in this proposal.
APE increased even after BAYC’s official Instagram account was exploited late Monday, causing $3 million( R 47.5m) in losses, according to reports. The Instagram account sent out an unauthorised “mint” link to unsuspecting followers, with the wallets of those who followed the link being hacked.
As the broader market rebounded by 3.2 percent in the last 24 hours, futures losses on APE and DOGE futures contributed to almost $200 million (R3.2bn) in overall liquidations. After falling below previous support levels over the weekend, bitcoin and ether regained their footing, while Terra’s LUNA soared 10%.