DeepBook [DEEP] was the biggest gainer among top 200 coins by market cap at the time of press. DEEP rallied more than 23% in the last 24 hours as the entire crypto market was up by only 0.70%.
Despite a broader altcoin market resurgence, the new product primarily drove DeepBook.
DeepBook debuts its prediction market
The DeepBook protocol, built on the Sui Network [SUI], announced the launch of its new prediction market platform, Predict. The platform went live as the team dropped the Predict Waitlist.
Predict allows betting on any asset at any price range with leverage. This new utility sparked immediate speculative interest, with daily trading volume exploding by 976% to over $60 million.
DEEP price pushing to break the range resistance
The price action charts confirmed the increase in speculative trading as DEEP attempted to break past the consolidation. The altcoin had been moving sideways for the past 100 days.
The Choppiness Index reading sharply dropped to 32, suggesting the trend was strong. However, capital inflow remained in the negative territory as per Chaikin Money Flow (CMF).
A break past the range’s high at around $0.0380 would ignite reversal chances. However, for the bullish reversal to be confirmed on the daily chart, DEEP has to reclaim the most recent lower high as support. This lower high was around $0.06.
If that reversal occurred, the next resistances that could curtail the uptrend were at $0.07 and $0.08. Sellers at these levels may react.
While the rally looked to be sustainable, the network’s activity gave a different story.
Whale PnL rises, but supply control raises concerns
Following this daily surge, DeepBook’s whales were profiting. The PnL of most whales was in the green, with one particular address up more than 307%.
There were also a couple of other addresses that recorded double-digit gains. However, most of these whales were starting to take profit as per the data from Sui Vision.
As profit-taking potentially hindered further price appreciation in the short term, there was more to worry about.
Tokenomics data showed that the top 10 holders controlled almost 70% of the circulating supply. This was a red flag when considering the perceived decentralized nature of crypto tokens.
Overall, the launch of Predict was bullish in both the short and long term by attracting more trading activity on the protocol. Still, that did not warrant a continuation, at least not at that moment.
Final Summary
- DeepBook Protocol rallies 23% after the launch of its prediction markets product, Predict.
- DEEP’s rally was gaining momentum, but whales were taking profits, with supply tokenomics also raising concerns.