With mainstream cryptocurrencies stagnant, many people have turned their attention to RAVE futures, but short sellers have suffered heavy losses today. According to CoinGlass data, the annualized funding rate of RAVE perpetual contracts has plummeted to between -2700% and -7000% across the three major exchanges—Binance, OKX, and Bybit—firmly topping the list of exchanges with the highest negative funding rates. Meanwhile, the token itself has surged by over 250% in the past 24 hours.
Funding rates are the core mechanism of perpetual contracts. Long and short positions pay each other every 8 hours. A positive rate means the long position pays the short position, while a negative rate means the short position has to pay to subsidize the long position .
RaveDAO is neither a meme nor an AI.
Many people, seeing RAVE's surge, immediately thought, "Just another meme coin," but this judgment cost short sellers dearly. RaveDAO is a Web3 music entertainment protocol that started as a 200-person afterparty in 2023, replicating electronic music festivals globally using a TEDx-like licensing model, and now attracts over 3,000 attendees per event. Its roster of collaborators includes top electronic music DJs such as Vintage Culture, Don Diablo, and Chris Avantgarde, and it has received endorsements from the Binance, OKX, Bitget, and Polygon ecosystems.
In terms of token structure, RAVE is a dual-purpose token deployed on Ethereum, with a total supply of 1 billion tokens and approximately 24% currently in circulation. The protocol has a buyback and burn mechanism, using profits from each event to buy back and burn tokens, with an additional 20% of event revenue donated to charity. Due to its small circulation, relatively low buying pressure allows for dramatic price increases.
A 3,500% increase in one week
RAVE was trading around $0.20 in early April before experiencing a violent surge, recently breaking through $10 and reaching a new all-time high, with a weekly gain of approximately 3,500%. The futures market followed suit, with open interest peaking at nearly $250 million, an extremely large amount for a non-mainstream protocol token.
The total liquidation in 24 hours was approximately $37.3 million, of which $31.1 million was liquidated from short positions, accounting for 83%. Binance was the main battleground for this short squeeze.
The reason why short sellers were crushed like this is not complicated. The highly concentrated position makes RAVE's price fluctuate greatly, so one must be very calm before investing.
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