Maple Finance’s token has been in a strong bullish trend this month, making it one of the top-performing cryptocurrencies in the market. The SYRUP token price jumped to a high of $0.4513 on Monday, its highest point since November last year, giving it a market cap of over $485 million.
What is Maple Finance, and Why is the Token Rising?
Maple Finance is a crypto project at the intersection of real-world asset (RWA) tokenization, decentralized finance, and asset management.
Its platform lets investors deposit funds and earn returns from lending activities. It has four key interest-earning products, like the syrupUSDC, a stablecoin-like asset that earns investors an APY of between 6% and 10%.
It also runs other assets, like the Blue Chip Secured Lending solution, which has over $144 million in assets. This solution provides loans to institutional borrowers, and these loans are backed by Bitcoin and Ethereum.
The High-Yield solution is similar to the Blue-Chip solution, with the main difference being that the collateral involves other tokens like XRP. This product offers a net APY of 8.8%, has $383 million in assets, and has a collateral ratio of 400%.
The Bitcoin yield allows BTC investors to earn between 4% and 6% by depositing their coins.
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Maple Finance also has the SYRUP token that users can stake and earn an annual return of over 5%. Over 44.6% of the SYRUP tokens are staked.
The SYRUP token price has jumped as the network’s total value locked (TVL) has continued soaring this year.
There are a few risks associated with investing in the SYRUP token. First, data shows that it is a highly centralized token, with insiders and venture capital firms like Dragonfly Capital and Big Brain Holdings owning most of the tokens.
Further data shows that smart money investors have continued selling the token and now hold 19.2 million tokens, down from over 44 million a few months ago. Exchange balances have jumped by over 27% in the last 30 days.
SYRUP Price Technical Analysis
The 12-hour chart shows that the SYRUP price has been in a strong rally in the past few weeks, moving from a low of $0.0872 on April 6 to a high of $0.45 today.
It has continued to cross key resistance levels as the bullish trend continued. It is much higher than the 50-period and 100-period Exponential Moving Averages. Also, the coin has become overbought as top oscillators, like the Relative Strength Index (RSI) and the MACD, have risen.
Therefore, while the uptrend may continue, there is a likelihood that it may go through mean reversion since it has deviated significantly from the moving averages. Such a move may result in a drop to the moving average point at $0.3057.
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