Solana-based memecoin Fartcoin's meteoric rise to the top ten cryptocurrencies by derivatives open interest highlights a dangerous level of speculative activity.

With over $1 billion in open interest—a staggering 65% of its market cap—FARTCOIN outpaces established players like Litecoin, Chainlink, and Avalanche. This extreme ratio, also observed in other smaller cryptocurrencies, signals a significant risk of widespread liquidation for both long and short traders.

Data from Coinglass and Alphractal underscores the disproportionately high open interest relative to market capitalization in many smaller altcoins, a trend described as a "strong risk signal" indicating potential for a 90% trader liquidation across the board.