Traders speculating on MYX Finance’s native token (MYX) faced significant turmoil this week, as the crypto market witnessed over $40 million in liquidations within a span of just 24 hours. This dramatic turn of events comes as MYX has experienced an extraordinary surge, climbing from $0.10 to $16 over the past two months.
Crypto analyst Skew commented on the situation via X, noting that MYX had been trading relatively steadily within the $2 to $4 range until recently. However, the climate shifted dramatically during a targeted short squeeze that propelled the token’s price from $4 to $8. Following this spike, Skew observed that “some liquidity provider or market maker got massively carried out,” highlighting the concerning nature of the liquidations that followed.
Despite MYX Finance operating as a decentralized exchange with a total value locked (TVL) of just $55 million and open interest of $5 million, its rapidly rising token price presents a stark contrast. In comparison, other exchanges like HyperLiquid hold impressive figures, with $712 million in TVL and a staggering $12.8 billion in open interest.
Interestingly, MYX boasts a fully diluted market valuation of $17.7 billion, making it a formidable competitor to HyperLiquid, which has a market cap of $17.5 billion. A notable characteristic of MYX is that more than 80% of its supply is currently locked up, with only 197 million tokens in circulation. This limited availability has raised concerns among traders about the potential for price manipulation, a sentiment echoed by various users on X.
As a result of its meteoric rise, MYX has secured its position as the 36th largest cryptocurrency by market cap, marking a significant milestone for the project amidst increasing scrutiny and speculation within the crypto community. The developments signal a volatile landscape for investors as they navigate the unpredictable currents of this emerging digital asset.
