Are DEX utility tokens being pumped? A massive increase indicates it

Are DEX utility tokens being pumped? A massive increase indicates it

Are DEX utility tokens being pumped? A massive increase indicates it

The decentralized exchange (DEX) utility token market segment has decoupled from the rest of the crypto market and has surged massively despite the crypto pause. According to data from CoinMarketCap (CMC), DEXs have seen a 55.73% cumulative average price increase over the past 24 hours. Of the 112 protocols tracked by CMC in this category, 51 (46%) are trading at a profit, while 61 (54%) continue to make losses. The top winner was Micromines (MICRO), which surpassed 6200% in the last 24 hours.

According to CMC. The rise suggests a sign that the sector is pumping to entice market participants to buy into the market as the DEX ecosystem has seen declining trading volumes in recent months. According to block data, DEX volumes have steadily declined to multi-year lows since April. In September, the segment recorded a total trading volume of US$55.77 billion.

That was down from $66.75 in August. So far in October, the segment recorded a trading volume of US$13.48 billion.

Could institutional interest be responsible for the pump?

While the recent rally points to possible manipulation, it also points to other fundamentals at play despite the cryptocurrency bear market. On the one hand, according to Golden Tree, more and more institutional investors are showing great interest in decentralized finance and DEXs. Earlier this month, GoldenTree Asset Management, a traditional money manager with more than $47 billion in assets under management, announced a SushiSwap of about $5.3 million, according to Golden Tree.

Meanwhile, the DEX sector is not the only market segment has seen an increase in average price over the past 24 hours, according to CMC data. Similarly, non-indexed utility tokens like Huobi Token (HT) have also seen a surge.

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