PIPPIN Only 3 Days After Launch Achieved Significant 33.64% 24-Hour Surge

PIPPIN achieved a significant 24-hour surge of 33.64% just 3 days after launch, currently trading at $0.38 with a market cap of $379 million and 24-hour trading volume of $43.1 million. This new project on the Solana chain quickly attracted market attention, but the driving force behind the rapid price increase deserves deeper analysis. According to the latest news, this surge did not stem from fundamental improvements, but rather from the direct effect of derivatives market liquidity structure.

Derivatives Market Short Liquidations Driving Price Rebound

According to the latest news, the core driving force behind PIPPIN’s recent surge comes from liquidity pressure in the derivatives market. The market has massive short positions, with one holding account that has maintained its position for approximately 45 days since opening on November 22, 2024, currently showing paper losses of $2.843 million. When adding high-frequency funding fees, the total loss reaches $4.945 million. Such massive losses typically accompany forced short liquidations, triggering a chain-reaction short squeeze effect that rapidly drives up the token price.

Funding Rate Reflects Short Pressure

Since November 30, 2024, PIPPIN has been in negative funding rate status for most of the time, which directly reflects market short position pressure. Negative funding rates mean shorts must pay fees to longs, and this cost pressure forces shorts to accelerate liquidations. The continuous release of short liquidation demand becomes an important driver of price rebound. However, this type of up-move driven by liquidity structure is unrelated to fundamental improvements.

Volatility Range Reflects High Leverage Characteristics

From the price volatility range, PIPPIN rebounded from a low of $0.24 to a high of $0.53 within 24 hours, with a swing exceeding 120%. This extreme volatility characteristic typically reflects the highly leveraged structure of the derivatives market—large open interest positions make prices prone to triggering chain-reaction liquidations upon minor moves, causing non-linear rapid reversals. Over the past week, PIPPIN experienced drastic swings between $0.28 and $0.61, with hourly declines even exceeding 20%, reflecting the extreme volatility risks in a high-leverage environment.

Concentrated Chip Distribution Amplifies Manipulation Risks

On-chain data shows PIPPIN’s chip distribution is highly concentrated, which is a risk factor requiring close attention. 93 wallets control 80% of total supply. Additionally, there are 16 new wallets with identical building patterns and 11 associated wallets collectively holding approximately 9% of total supply. This means a small number of funds possess enormous price impact power.

Typical New Token Characteristics

PIPPIN launched for trading on January 6, 2025, currently ranked 118th by market cap. As a new token only 3 days after launch, its extremely concentrated holding structure and lack of substantial fundamental narrative updates make price movement more dominated by liquidity and capital structure rather than project fundamentals. Although positioned as a “community ecosystem full of gentle miracles” integrating BabyAGI technology framework, information disclosure is sparse, making it difficult to support the current valuation level.

Subsequent Trend May Show Rapid Reversals

Based on the existing derivatives market microstructure, PIPPIN’s subsequent price action may exhibit rapid reversal characteristics. Once short liquidation pressure is exhausted, prices lacking fundamental support may face sharp adjustments. Meanwhile, the liquidity fragility in a high-leverage environment means even relatively small selling pressure could trigger large-scale chain-reaction liquidations, causing rapid price declines.

Summary

PIPPIN’s 24-hour 33% surge is the result of derivatives market short liquidations, not fundamental improvements or project progress. The importance for investors to understand this is: this type of appreciation dominated by liquidity structure possesses high unsustainability. Extreme volatility in high-leverage environments, extremely concentrated chip distribution, and sparse information disclosure of new tokens collectively constitute a high-risk market environment. Rapid price increases often accompany the potential for quick reversals. Understanding the specific driving mechanisms behind price movements is far more important than blindly following trends.