E Point Perfect

Are DEX Utility Tokens Being Pumped? Massive Surge Suggests So


article image

Wahid Pessarlay

DEX utility tokens have recorded a 55.73% increase in average price suggesting a pump in the segment

The decentralized exchange (DEX) utility tokens market segment has decoupled from the rest of the crypto market, surging massively in spite of the crypto lull. Per data from CoinMarketCap (CMC), DEXs have cumulatively recorded an average price increase of 55.73% in the last 24 hours. 

Of the 112 protocols tracked in this category by CMC, 51 (46%) of them are trading in gains while 61 (54%) remain in loss. The top gainer was Micromines (MICRO) which pumped over 6200% in the past 24 hours, according to CMC. 

The surge is suggestive of a sector pump signal to entice market participants to buy into the market as the DEX ecosystem has been recording declining trading volumes in recent months. According to data from the Block, DEX volumes have been declining steadily since April to multi-year lows. 

In September, the segment recorded a total of $55.77 billion in traded volume. This was a drop from August’s $66.75. So far in October, the segment has recorded $13.48 billion in traded volume. 


Could institutional interest be responsible for the pump? 

While the latest surge points to possible manipulation, it also points to other fundamentals at play despite the crypto bear market. For one, more institutional investors are taking a keen interest in decentralized finance and DEXs, according to Golden Tree

Earlier this month, GoldenTree Asset Management — a traditional asset manager with over $47 billion in AUM — disclosed an about $5.3 million SushiSwap, per Golden Tree. 

Meanwhile, the DEX sector is not the only market segment that has recorded a spike in average price in the last 24 hours per CMC’s data. Similarly, non-dex utility tokens such as Huobi Token (HT) have also seen a rise. 


Source link

Related posts

Bitcoin Market Seems “Overcold,” Analyst Says

Wall Street Expects Bitcoin to Drop to $10,000

Dogecoin Transactions Are Spiking as Crypto Market Recovers

Troubled Hedge Fund 3AC Files for Bankruptcy Protection

Why Is TWT Rallying by 10% Again? Here’s Reason

Coinbase Helping Plaintiffs Sue US Regulator, Here’s Why: Bloomberg