Why is Perpetual Protocol (PERP) Crypto Dive Today?
Perpetual Protocol (PERP) crypto is primarily a multi-blockchain network that acts as an on-chain perpetual futures DEX that allows users to trade leveraged, short positions at low slippage rates. Launched in 2020, Perpetual Protocol uses a virtual AMM (vAMM), which ensures liquidity on the chain with predictable pricing. Because of this, the PERP crypto is designed in such a way to be market neutral and fully secure.
Founded by Taiwanese duo Yenfen Weng and Shao-Kang Lee, the main goal of the PERP crypt is to develop a contract trading platform that anyone can use. Unlike other protocols, PERP encryption uses the vAMMs, whose initial liquidity is set by the operator instead of the order book model of centralized exchanges.
The PERP crypto on August 8 witnessed a loss of 1.65% at 06:00 (GMT +1) and a volume loss of over 30%, according to CoinMarketCap.
Why is PERP encryption trailing?
The exact reason for the PERP crypt’s fall is hard to imagine considering that it has witnessed a positive run so far in the last 30 days. In fact, over the past month or so, it had accumulated gains of over 55% and over 25% over the past week or so.
The drop is surprising, considering that the overall crypto market increased by 2.77% on August 8 with a comprehensive market capitalization of USD 1.12 trillion. The dip’s effect was visible as its RSI dropped to 66.66.
Image credit: Trading View
However, the MACD line still manages to stay above the signal line, which could be due to the rally it had witnessed in the last month or so. But the signal line may catch up with it if the decline continues further.
PERP crypt’s price performance
The 268th ranked PERP crypto traded on Monday at $1.11 with a trading volume of $1,18,87,497 according to CoinMarketCap. The Perpetual Protocol had a market cap of USD 9,87,88,014 with 8,87,75,000 PERP coins.
Although the PERP crypto witnessed a rally, today’s dip shows the volatility of the token. That is why the market players must make sure that they do their market research properly before entering the crypto market. Any decisions made without proper market research can lead to significant financial losses.
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