OlympusDAO (OHM) falls 25% as the market weakens
OlympusDAO (OHM) was hit hard by the recent market sell-off and is rapidly sliding towards an all-time low of $ 163 set this summer.
Investors flee from OlympusDAO.
The decentralized reserve currency protocol is down more than 87% from its all-time high last April amid a market-wide sell-off. OlympusDAO’s downtrend accelerated last week, losing 43.5% in value. The OHM token has fallen 15% in the past 24 hours and is currently trading at $ 179.88. The price is currently around 12% above the all-time low of $ 163 set during the market crash in May 2021.
OHM / USD chart | The source: Coin Gecko
OlympusDAO is the first crypto project to use a ring token economic structure to attract liquidity. Thanks to OlympusDAO’s intelligent token economy mechanism, investors can get excellent returns from asset linking and staking OHM tokens. This liquidity flywheel took off as market momentum turned bullish and inspired many fork projects like Wonderland Money. The craze for OlympusDAO peaked in late 2021 when many digital assets hit new highs, and by November it had reached a market cap of $ 4 billion.
However, as the May collapse and recent price movements show, OlympusDAO appears to be more affected by market weakness than other projects. OlympusDAO’s design has been criticized by many crypto enthusiasts as a Ponzi scheme. This is because Olympus and other projects need money to join the protocol in order to incentivize existing investors.
Other protocols using the same token economy structure as OlympusDAO have also fallen in price. Wonderland (TIME) suffered similar losses last week, 80% less. The OlympusDAO-based Redacted Cartel Fork is also diving on Ethereum, although its value has nearly tripled since its inception in mid-December. The BTRFLY protocol token lost about 34% in its recent price drop, but has partially recovered since then.
The crypto market has been hit hard since the beginning of the year after it didn’t do so well at the end of 2021. Bitcoin briefly fell below $ 40,000 on Monday and is down 10% for the week but has found support at current levels. ETH is even worse, with a 17% weekly decline. The second largest cryptocurrency appears to have stabilized after testing support at $ 3,000. The most recent downtrend comes after the Federal Reserve confirmed a rate hike on January 5th. This has rocked the crypto and stock markets.
While most of the digital assets are cited by Bitcoin and ETH, there are a few exceptions. Near Protocols NEAR token – the fragmented Layer 1 network has recovered from a temporary weakness and is up 10% in the past 24 hours. The privacy-driven Oasis Network (ROSE) also showed strength, growing 28% over the same period. Whether these assets will continue to decouple from the broader market remains to be seen.
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