#MarketSentimentWatch
However, in recent weeks, the momentum of capital inflows has declined for all digital assets. Notably, Ethereum and Top Memecoins have now flipped negative (capital outflows), with Ethereum facing a -0.1% net outflow from the Realized Cap and Memecoins Index seeing an even sharper -5.9% outflow.
This signals a meaningful cooling down in speculative appetite and alludes to a potential for capital rotation out of riskier assets on the road ahead.
As momentum starts to fade in spot markets, we can also see a decline in capital inflows within the perpetual futures market. The cooling of demand on the spot side has led to a sharp drop in perpetual open interest (OI) across all major assets, signalling a reduction in speculative activity and lower cash and carry yields.
Over the last 30 days, the rate of change in open interest highlights a widespread retreat of capital:
Bitcoin OI: -11.1%
Ethereum OI: -23.8%
Solana OI: -6.2%
Memecoins OI: -52.1%
This trend of declining open interest across the board suggests that speculators are reducing their leveraged exposure, likely in response to weaker market momentum and increasing market uncertainty. The most extreme decline is seen in Memecoins, which tend to attract more short-term leveraged bets but lose traction quickly whenever sentiment weakens.
