Yield Guild Video games surged almost 600% in lower than every week, smashing by the highest gainers charts earlier than abruptly crashing.
In response to experiences, a brand new Binance buying and selling product and an ongoing neighborhood gaming occasion have performed a pivotal function within the unimaginable worth rally of the YGG token.
YGG Token Surges
In response to information from CoinmarketCap, the Yield Guild Video games (YGG) token noticed a dramatic surge over the previous week, rising by 580% and reaching a peak of $0.93 on the seventh of August, 2023. Nevertheless, the token abruptly crashed quickly after reaching this worth stage and is at present buying and selling at round $0.36. Nevertheless, the token had hinted at a decline in worth in its progressively dropping buying and selling quantity. The buying and selling quantity recorded a drop of 26% in 24 hours, falling beneath $500 million, whereas the market cap elevated by $17 million, reaching $161 million.
Why Did The YGG Worth Rally?
Observers attributed the surge within the YGG token’s worth to a few main components. On the third of August, Yield Guild Video games introduced the 4th season of the Guild Development Program (GAP). The Guild Development Program is a periodic gaming occasion that distributes rewards reminiscent of tokens to neighborhood members who efficiently full specified quests in collaborating in YGG-affiliated video games.
The 4th season of Yield Guild Video games consists of among the largest names within the area, reminiscent of Splinterlands, Skyweaver, and Axie Infinity. In consequence, it ought to come as no shock that the Yield Guild Video games community utilization noticed a spike, reaching a one-month excessive of 192 lively addresses. Yield Guild Video games said in its press launch,
“A number of the neighborhood’s most up-to-date high picks are becoming a member of the fold this season, with all-new quests for guild members to dive into as they hone their expertise and set up their web3 fame. The season will formally start on the third of August, 2023, and can run till the twenty seventh of September, 2023.”
Barely a day later, Binance introduced plans to launch a YGG/USDT buying and selling pair for perpetual contracts on its CEX platform, permitting as much as 20x leverage. Out there on-chain information means that the announcement introduced in about $100 million value of latest capital into the YGG ecosystem.
Whales Dumping Share Of YGG
Whereas the expansion has been fairly notable, experiences have emerged of enterprise capital firms who initially backed the undertaking, reportedly trying to promote their share of YGG on Binance. Information from LookOnChain sourced on the seventh of August reveals that Bitkraft Ventures and DWF Labs have moved their YGG holdings to Binance and are almost certainly trying to promote. DWF Labs had obtained round 29 million YGG from the Yield Guild Video games Treasury. Nevertheless, on-chain information has steered that the majority of those tokens have been moved to exchanges. Bitkraft Ventures additionally made giant deposits on Binance utilizing FalconX.
One other whale, Wintermute Buying and selling, has reportedly deposited simply over 11 million YGG value $6.7 million to completely different exchanges over the previous 4 days. It at present holds an additional 2.5 million YGG, valued at round $1.5 million. LookOnChain additionally confirmed that Youbi Capital had deposited round 1 million YGG to Binance. The agency at present holds about 11 million YGG. Sfermion has additionally jumped on board the promoting wagon, utilizing FalconX to deposit its YGG tokens on Binance.
Massive deposits typically signify an investor’s willingness to change the token for different property or promote them. That is additionally true of whales reminiscent of those talked about earlier. Smaller buyers have a tendency to comply with bigger buyers, copying their promoting conduct.
Disclaimer: This text is supplied for informational functions solely. It’s not provided or meant for use as authorized, tax, funding, monetary, or different recommendation.