As a seasoned researcher with a knack for deciphering the intricacies of the cryptocurrency market, I find myself drawn to the meteoric rise of DeepBook (DEEP) token following its airdrop on Oct. 15. Having witnessed the rollercoaster ride that is the crypto world, I can’t help but feel a mix of excitement and caution towards this promising project.
On October 15th, I found myself among the fortunate few who reaped the benefits when the DeepBook token soared in performance following its eagerly anticipated airdrop.
DeepBook’s (DEEP) price skyrocketed to $0.0380, representing a surge of more than 261% from its record low on Monday. This boosted its market capitalization to over $85 million, and its fully diluted valuation swelled to an impressive $339 million.
DeepBook, a creation of ex-engineers from Meta Platforms, has made a significant impact within the SUI (SUI) community, establishing itself as one of the leading figures. This innovative platform ensures greater liquidity, faster transaction speed, reduced latency, and a transparent trading environment, making it an attractive choice for users.
Data shows that DeepBook has become one of the biggest players in the Sui Blockchain. According to DeFi Llama, the network handled over $65 million in volume in the last seven days. This makes it the third-biggest decentralized exchange network after Cetus and Turbos.
100,000 initial backers of DeepBook were granted DEEP tokens recently, which they had previously received the DBClaimNFT. These tokens serve multiple purposes within the DeepBook ecosystem: paying for trading fees, offering liquidity, and aiding in the management of the network through governance.
Dilution is a major concern
As stated on their site, DeepBook’s total issuance stands at 10 billion DEEP tokens, with an initial number of 2.5 billion in circulation.
In simpler terms, the issue lies in the fact that investors who have held onto their tokens for a long time may face more token reduction over the coming seven years due to further releases to the market. Adding more tokens to the market through these releases (token unlocks) tends to decrease the value of the existing tokens because there are now more coins available.
The next potential catalyst for the DeepBook token will be more exchange listings by centralized exchanges like Binance and Coinbase. Most of the current trading happens on centralized and decentralized platforms like Bybit, Gate, MEXC, and Cetus.
DeepBook may encounter a steep setback, given that many freshly issued tokens often surge and subsequently plummet by substantial margins. For instance, the Wormhole (W) token peaked at $1.8632 following its airdrop but has since fallen more than 83%.
Initially, the value of ZkSync (ZK) token peaked at around $0.2942 in June, but since then it has fallen more than 54%, currently sitting at approximately $0.1337. Similarly, Hamster Kombat experienced a rise to $0.0132 and subsequently dropped down to about $0.0040.
A potential hope for DeepBook’s token is that the crypto industry has improved, with Bitcoin (BTC) rising to $66,000 and the crypto fear and greed index hitting the greed level of 60. Its token could continue rising if this crypto recovery continues.
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2024-10-15 18:38