Why is MemeFi still rising even after Binance delisting?

MemeFi (MEMEFI) extended its rally for the second day in a row, going vertical with 312% gains for the past week. The token rose despite the recent delisting from the Binance futures market. 

MemeFi (MEMEFI) performed one of the most dramatic rallies for the past week, gaining up to 312% over the week. The overall consensus is the MEMEFI rally is extremely risky and can break down at any moment. MEMEFI was one of the tokens listed by Transac in December 2024, as previously reported by Cryptopolitan.

As a paradox, the MEMEFI rally started just as Binance announced it would delist the asset following months of low-level activity and sideways trading. MEMEFI recovered to $0.005, a level not seen since May. 

Previously, MEMEFI has performed similar rallies, crashing by over 90% within hours or days. The token peaked at $0.012 soon after its launch in November 2024, once again erasing over 90% of its value. 

The recent rally recalls Alpaca Finance (ALPACA), which rose sharply due to a short squeeze following its delisting from Binance. Since June, ALPACA returned to its baseline lows of $0.02.

MemeFi open interest rose to all-time high 

MEMEFI open interest matched the price rally, rising to an all-time high. Traders opened positions for $36.92M, as activity shifted to OKX and Gate. However, the actual end of the futures contract will arrive on August 11 at 8:30 UTC. Until then, traders are making their last aggressive moves on the Binance futures market. 

Binance warned it will stop stabilizing the market in the final hour of trading, giving a few more days of peak activity and risky positions. Binance may also change the conditions of the contract at any time before the delisting. 

Most of the new open interest came from short positions, with positions rising to 54% of the total. This led to $1.28M in short liquidations on Binance, in the last hours of trading just before the delisting. Additional short liquidations happened on Huobi. 

Other spot markets boosted the price of MEMEFI, leading to the near-vertical rally. The price action can break down at any time, as most MEMEFI markets have limited depth and can lead to fast slippage. The low depth also allowed for the fast vertical rise. 

MemeFi hints at rebuilding

The rally of MemeFi also boosted the team’s visibility, showcasing their upcoming upgrade. The MemeFi team announced an app upgrade coming at the end of August. 

MemeFi Mini App 2.0

31.08.2025 pic.twitter.com/kHxUCw7cGk

— MemeFi Labs (@memeficlub) August 6, 2025

However, in the short term, the MEMEFI asset is seen as extremely risky and unreliable, especially for derivative trading. 

Previously, MEMEFI has been shilled by influencers, trying to ride the market momentum during the 2024 bull market. However, loss of interest in Web3 projects and a market correction led to the current thin market. Demand for MEMEFI is currently mostly tied to covering short positions, with little demand for the underlying game. 

Based on DappRadar data, the gamified Web3 app is currently inactive, with a negligible number of users and transactions. The upcoming new app may aim to draw in users again following a period of low interest in on-chain gaming.

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