3 reasons why the IDEX price and volume soared

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As a seasoned analyst with over two decades of experience in the financial markets, I must admit that the recent surge of IDEX is quite intriguing. The token’s meteoric rise to its highest level since March this year, coupled with the significant increase in trading volume and total value locked, paints a bullish picture for this decentralized exchange player.

In simple terms, IDEX, a well-known name in the world of decentralized exchanges, has reached its peak level since March of this year.

The IDEX (IDEX) token climbed to $0.1150, marking a gain of over 335% from its lowest level this year and pushing its market cap to more than $70 million. This rally occurred in a high-volume environment, with 24-hour trading volume increasing by over 4,420% to reach $318 million.

The spike occurred simultaneously as the overall value locked within IDEX’s network reached an all-time peak of $70 million, primarily on its Ethereum (ETH) edition, while the remaining volume was distributed between the IDEX Chain and Polygon.

As a researcher, I’ve noticed an impressive surge in the weekly trading volume on IDEX V4, specifically for its perpetual futures. According to data from DeFi Llama, this week’s trading volume reached an all-time high of $84.2 million, marking a significant milestone. Furthermore, the platform’s cumulative trading volume has now surpassed the $388 million mark, setting new records for IDEX V4.

The coin likewise gained momentum before the anticipated debut of Buy & Lock, scheduled for the latter part of this week. Buy &Lock serves as a liquidity program aimed at enhancing its presence within the blockchain network.

In this service setup, every single fee collected within the network is set aside for reinvestment and locking. Half of these fees are then utilized to acquire IDEX tokens, thereby decreasing the existing supply in circulation.

The remaining 50% of the tokens will be paired with the purchased IDEX and added into a Uniswap (UNI) liquidity pool. The developers hope that Buy & Lock will create more value and liquidity for the network. 

Beginning next week, we’re unveiling Buy & Lock – an initiative where protocol-owned liquidity is being established to bolster the on-chain influence of $IDEX.

— IDEX 🐐 (@idexio) December 5, 2024

The new venture was introduced following the deployment of a rewards system by the developers, where users can exchange, accumulate points, and later redeem them on Fridays. Subsequently, these earned tokens can be re-invested, yielding additional returns as the value of IDEX increases.

IDEX price faces resistance

On December 9th, the graph indicates that the value of IDEX crypto peaked at $0.1148, but subsequently dropped down to $0.086. This decrease occurred because Bitcoin (BTC) and many other altcoins also experienced a decline around the same time.

On August 28, the coin reached a new high of $0.060 and continues to stay above this significant resistance level. Furthermore, it has surpassed all its moving averages, indicating that the market’s upward momentum is being driven by the bulls.

The value of IDEX has dipped slightly below a key Fibonacci Retracement level (61.8%). This drop might be temporary, and the coin could regain its momentum, potentially reaching its highest point this week at approximately $0.1148. If it manages to surpass that level, further gains are likely, possibly even reaching the previous high of $0.1253 from March.

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2024-12-09 17:14