Blockchain data indicates that only about 24% of RAVE’s total supply is currently in circulation, with the overwhelming majority held in a small number of wallets, according to a post on X. Three large wallets, widely believed to be controlled by the project team, reportedly hold roughly 90% of the total supply. When expanded to the top 10 wallets, concentration exceeds 98%, leaving only a thin float available for trading.

That structure can amplify price movements dramatically. The analyst pointed to a sequence of events shortly before the rally, when wallets linked to the project quietly transferred millions of tokens to exchanges while prices were still below $0.50.

Within hours, trading activity surged, open interest in derivatives markets spiked above $200 million, and daily volume approached the token’s entire market capitalization.

At the same time, a heavily short-positioned market—reportedly with a majority of traders betting against the token—set the stage for a large-scale short squeeze. As prices rose, forced liquidations accelerated the rally, with millions of dollars in short positions wiped out in a single day.

Such dynamics, combined with thin liquidity, can create rapid, self-reinforcing price spikes that are not necessarily driven by organic demand.

The episode comes amid broader concerns about ongoing vulnerabilities and questionable practices in the crypto sector, including recent exploits and controversies involving other projects. For some analysts, RAVE’s surge is less a sign of a healthy market recovery and more evidence that speculative froth and opportunistic behavior remain entrenched.

AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

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