The Perpetual Protocol price went parabolic on Thursday as investors focused on the upcoming launch of vePERP next week. As a result, the PERP price rose to a high of $1.3600, which was the highest level since May 31st. This year, it has jumped by over 150% from its lowest level, bringing its total market cap to more than $110 million.
Why is PERP soaring?
Perpetual Protocol is a leading blockchain project in the DeFi industry. A decentralized exchange (DEX) enables people to trade perpetual futures in the crypto industry. For starters, perpetual futures are similar to those found in the stock market, with the only difference is that they do not have an expiry date. As a result, perpetual competes with the likes of dYdX and Uniswap.
Perpetual Protocol price has jumped sharply as investors wait for the upcoming launch of vePERP, which will happen next week. vePERP is a financial derivative that will help people earn returns by just holding the token. It will track the performance of PERP. The longer a person will hold the derivative, the more tokens they will receive. These rewards will come from liquidity provider rewards. Historically, cryptocurrencies tend to do well ahead of a major launch.
The Perpetual Protocol price is rising as the volume of cryptocurrencies flowing in exchanges rise as cryptocurrency prices rise. This also explains why other popular tokens like UNI and dYdX prices have jumped sharply in the past few days.
Perpetual Protocol price prediction
The four-hour chart shows that the PERP price went parabolic on Thursday as investors wait for the launch of vePERP. However, as it rose, it managed to move above the important psychological level of $1. In addition, it has cruised above the 25-day and 50-day moving averages.
The coin’s oscillators like the Relative Strength Index (RSI) and Stochastic Oscillator have all moved above the overbought level. Therefore, I suspect that the coin will remain at an elevated level ahead of the launch and then pull back sharply afterward. As such, it will likely retest the important support at $1.