Pump Sees Price Pullback Amid Rising Open Interest and TVL
Pump, an up-and-coming DeFi protocol, experienced a pullback in price on Wednesday after a significant surge the previous day. However, derivatives and on-chain data indicate that capital is still flowing into the market.
The open interest in Pump futures rose to $258.62 million, marking a 24-hour increase of around $41.88 million from the previous day's $216.74 million, according to CoinGlass data. This suggests that traders are opening new positions and accumulating leverage, making the market more sensitive to short-term volatility.
The funding rate in Pump's perpetuals market turned positive on Wednesday, rising to 0.039% from -0.0036% the previous day. A positive funding rate typically indicates a bullish market sentiment with longs willing to pay a premium to maintain their positions.