MemeFi surged 300% after Binance’s futures delisting news.
A major short squeeze after Binance’s announcement triggered high trading volume and volatility.
Binance delisting raises doubts about the rally’s sustainability.
MemeFi (MEMEFI), a tap-to-earn crypto project built around Telegram mini-games, has shot up by more than 300% in a matter of hours, pushing it into the list of the top gainers today.
However, doubts are emerging about the long-term viability of the memecoin price action, especially seeing that it comes after Binance announced it will delist the token’s perpetual contracts on August 11.
Why is the MEMEFI price rising?
The dramatic price surge appears to have been triggered by a major short squeeze, following Binance’s decision to delist MEMEFI’s perpetual futures contracts.
As the August 11 deadline approaches, traders are rushing to exit their short positions, creating intense buying pressure that sent the price skyrocketing.
This has forced a wave of short liquidations, reportedly triggering nearly $376 million in trading volume in just one day, propelling MEMEFI to over $0.0063 from levels below $0.002, although it has slightly pulled back to around $0.005026.
Open interest also hit an all-time high of $36.92 million, with the majority of those positions — roughly 54% — being shorts.
As a result, $1.28 million worth of short positions were liquidated on Binance alone, with further liquidations noted on platforms like Huobi.
Binance delisting looms over the rally
Despite the bullish momentum, the looming delisting by Binance has injected a dose of caution into the market.
The exchange confirmed that it will halt trading of MEMEFI and DEFI perpetual futures on August 11 at 09:00 UTC, meaning traders must close any open positions before the deadline or risk forced liquidations.
While spot trading remains unaffected, the end of derivatives trading significantly reduces speculative leverage opportunities.
Binance has warned users that it may adjust contract parameters or stop stabilising the MEMEFI market in the final hours. This warning has contributed to increased volatility and uncertainty.
The delisting decision appears to stem from sustained low trading volumes and reduced demand.
However, the surge in price and interest following the announcement may be too little, too late to change Binance’s course, and traders must now weigh the risks of staying in an asset that is losing major exchange support.
Concerns over MemeFi team’s silence and project fundamentals
Adding to investor unease is the silence from the MemeFi development team.
Until recently, the project’s official communication channels had gone quiet since May.
Only on August 6 did the developers resurface with a teaser for an app upgrade expected at the end of August.
This prolonged silence has raised questions about the team’s commitment to the project.
Although MemeFi boasts over 55 million users and 10 million on-chain wallets, its underlying utility has come under scrutiny.
According to DappRadar, the MemeFi ecosystem has seen negligible user activity in recent months, suggesting that the current rally may be more technical than fundamental.
Crypto analysts have also cautioned that the price spike could be driven more by trading pressure and algorithmic strategies than by genuine investor interest.
The project’s prior history includes extreme volatility, with previous rallies followed by price crashes of over 90%.
MemeFi price forecast: can the momentum last?
With MEMEFI still down more than 80% from its all-time high of $0.01376 in November 2024, the current rally has yet to repair its long-term trajectory.
Although the token is now trading at around $0.005026 and ranks at position 769 by market cap, its price remains highly susceptible to rapid changes due to low market depth and high slippage risks.
The final days leading up to Binance’s delisting may continue to be marked by high volatility.
But without stronger fundamentals or renewed user interest in its Web3 gaming platform, the sustainability of this price action is in question.
For now, while MEMEFI has shown it can still surprise, its future remains deeply uncertain in the shadow of Binance’s exit.
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