Maple Finance [SYRUP] Joined the asset sold in the market over the past two days.
It reached $0.20 on Thursday morning before falling along with the rest of the crypto market. The last time it traded at this level was on May 26th.
Maple Finance’s performance on-chain remained positive. This created a divergence in the price of SYRUP and protocol activity.
What is the reason for Maple TVL’s rise?
Maple Finance Capital continued to increase despite the decline of tokens.
This protocol locks the total value of its protocol. [TVL] According to DeFiLlama, the amount of money raised in 48 hours increased by approximately $173 millions.
TVL increases do not represent a new amount of capital. The underlying price of an asset can affect TVL.
The increase in demand for Maple Syrup was a result of the market’s overall selling.
DeFiLlama recorded approximately 153,000 dollars in Holders revenue during the month of July. This measure tracks the value that token holders receive.
Although they don’t guarantee a higher price, these distributions can support the demand for holdings.
Why have SYRUP traders pulled back?
The decline in SYRUP was more likely to be due to a general market downturn than an overall deterioration of the protocol.
CoinGlass’ data shows that open interest has fallen by about 7% during the past 24 hours.
The amount declined from 24,15 to 22,44 million dollars, which is a reduction of $1.71 from the outstanding derivatives.
The fall in open interest suggested traders were reducing their exposure to volatility. The data did not show whether the traders closed their longs and shorts voluntarily.
During the same period, SYRUP positions worth approximately $27 390 were liquidated.
Forced closures accounted for only a small part of the decline in Open Interest, based on their relatively low liquidation figures.
In addition, the ratio of Long/Short fell from 0.80 to just 0.74. According to the reading, short positions outweighed long ones within the chart’s time cohort.
Maple growth can support SYRUP
As investors cut back on risk, the crypto market as a whole also shrank sharply.
The crypto market cap, excluding stablecoins, fell by $90.71 Billion after July 15th.
Market-cap losses, however, do not equal the amount of capital that is withdrawn. Prices can drop with much lower net sales flows.
SYRUP may regain its demand as the market improves, and Maple Finance continues to grow.
Summary
- Maple Finance increased its TVL by $173 Million despite SYRUP prices falling.
- The open interest in SYRUP fell by 7%, as traders cut their derivatives exposure.
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Source: ambcrypto.com
