Binance Futures has announced the launch of the DEGENUSDT Perpetual Contract, which will go live on November 15, 2024, at 11:30 (UTC). This new offering will support leverage of up to 75x, giving traders access to greater exposure to the DEGEN token. The move is part of Binance Futures’ strategy to broaden its trading options and improve user experience.
Following the announcement, DEGEN’s market performance surged, marking a 12% increase in value. Despite previous fluctuations, including a sharp decline to a $40 million market cap, DEGEN has rebounded significantly, now stabilizing at a $500 million market cap. Its all-time high market capitalization reached $1.06 billion, underscoring its rapid growth and popularity.
DEGEN began as a meme coin within the Farcaster decentralized social network, gaining traction through its community-driven appeal. Over time, it has evolved to serve as the native token for Degen Chain, a Layer 3 blockchain that operates atop Base, an Ethereum Layer 2 scaling solution.
Degen Chain is designed to offer low-cost transactions and aims to foster a community-centric environment for building decentralized projects. Its focus on affordability and inclusivity has helped position DEGEN as a leading asset on Base, now recognized as the largest memecoin on the platform.
Implications of the Binance Listing
The introduction of a DEGENUSDT perpetual contract on Binance Futures is expected to increase the token’s market visibility and liquidity. Perpetual contracts allow traders to speculate on DEGEN’s price movements without holding the underlying asset, making it an attractive option for both long-term investors and short-term traders.
However, trading with leverage entails significant risks, particularly in a volatile market segment like memecoins. Binance has advised users to carefully consider their risk tolerance before engaging in high-leverage trading.
