Degod token experiences postlaunch surge but historical data indicates a forthcoming reversal
Degod, a newly introduced token on the Solana blockchain, experienced a significant surge of more than 10% on its first day of trading. This surge was driven by traders’ fear of missing out on potential gains.
The token, known as DEGOD, reached an intraday high of $0.0095 before retracing to $0.0075 at the time of writing. Despite the decline, its market capitalization exceeded $76 million.
According to DEXTools, the token’s 24-hour trading volume amounted to $15.5 million. The majority of this volume originated from Raydium, the largest exchange in the Solana ecosystem, followed by Meteora and Orca.
Degod was launched as a collaboration between the developers of a popular Solana non-fungible token and Sniper, a prominent NFT marketplace.
Data from CryptoSlam revealed a significant increase in the sales of Degod’s NFTs on Monday, with an 88% surge as interest in the token grew. The sales surpassed $1.12 million, and the number of transactions rose by 77% to 245. Overall, the total sales of Degod’s NFTs amounted to $18.1 million, with 1,066 unique owners.
The distribution of the DEGOD token has been gradually taking place over the past three years, according to the project’s website. Currently, there are 41,241 unique holders across the Degods, yOOts, and dust ecosystems. These holders possess 85% of all tokens in circulation, while the remaining 15% is allocated to the foundation and launch partners. The maximum circulating supply of the token is 1 billion.
It is worth noting that new cryptocurrency tokens often experience initial price surges upon launch, followed by a subsequent decline as some holders sell their coins. Examples include the Wormhole (W) token, which initially surged to $1.8541 but has since dropped by over 90%. Similarly, Zksyn (ZK) rose to $5 before plummeting to $0.09, and Notcoin (NOT) peaked at $0.029 before experiencing a 75% drop to $0.0072.
In summary, Degod’s debut on the Solana blockchain was met with significant enthusiasm from traders, resulting in a notable price surge. However, it remains to be seen how the token will perform in the long term, as the volatility of new tokens often leads to price fluctuations.
