Popcat hit a new ATH amidst surge in futures open interest

• Popcat has surged by 53% over the past week.
• Amidst increased market optimism and a surge in futures open interest, Popcat reaches a new ATH.

The Solana-based memecoin Popcat [POPCAT] has experienced exponential growth over the past month. As such, it has become the top earning memecoin while others have experienced a decline on weekly charts.

Popcat hits a new ATH

Over the past 24 hours, Popcat has hit a new ATH surpassing the $1.4 mark. During this period, the memecoin reached $1.47. In fact, as of this writing, Popcat was trading at $1.45. This marked a 53.07% surge on weekly charts and an extension to the bullish trend by a 20.00% increase on daily charts.

Additionally, Popcat has become the highest earning memecoin on monthly charts as it surged by 185. 86%.

Therefore, the Popcat’s recent massive surge raises questions about the factors driving it.

What’s driving the surge

Source: Coinglass

For starters, one of the factors driving the memecoin’s surge is the sudden rise in futures open interest. According to Coinglass data, open interest has surged by 23. 51% to $234.9 million.

As such, futures open interest has hiked from a low of $121.5 million to $237.1 million. A surge in open interest shows investors confidence in the memecoin’s direction as they open new positions.

Source: Coinglass

Additionally, increased market optimism has also played a major role in Popcat’s sustained rise. This was illustrated by the significant increase in trading activities. Thus, the memecoin’s volume has surged by 93% to $1.06 billion.

What next for Popcat?

Notably, Popcat is enjoying increased market favorability and positive sentiment.

Source: Santiment

This was supported by increased demand for long positions as evidenced by a positive funding rate. This suggests that investors project further gains and are  increasingly taking long positions.

Source:: Coinglass

Finally, Popcat’s OI-weighted funding rate has remained largely positive over the past week. A sustained positive weighted funding rate supports our previously observed demand for long positions.

Realistic or not, here’s POPCAT’s market cap in BTC’s terms

As such, investors are willing to pay a premium fee to short position holders to maintain their trades. This is another positive sentiment.

Therefore, if the current market conditions hold, the memecoin will hit a new high of $1.6 in the short term.