Why is Perpetual Protocol (PERP) crypto dipping today?

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Why is Perpetual Protocol (PERP) crypto dipping today?

 Why is Perpetual Protocol (PERP) crypto dipping today?
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Highlights

  • Perpetual Protocol (PERP) crypto is primarily a multi-blockchain network which acts as an on-chain perpetual futures DEX which allows the users to trade with leverage, short positions at low slippage rates.
  • The PERP crypto on 8 August witnessed a loss of 1.65% at 6:00 AM (GMT +1) and a volume loss of over 30%, according to CoinMarketCap.
  • The 268th-ranked PERP crypto, on Monday, was trading at US$1.11 with a trading volume of US$ $1,18,87,497 as per CoinMarketCap.

Perpetual Protocol (PERP) crypto is primarily a multi-blockchain network which acts as an on-chain perpetual futures DEX which allows the users to trade with leverage, short positions at low slippage rates. Launched in 2020, Perpetual Protocol uses a virtual AMM (vAMMs), which ensures on-chain liquidity with predictable pricing. Due to this, the PERP crypto is designed in such a manner to be market-neutral and fully collateralised in nature.

Founded by the Taiwanese duo of Yenfen Weng and Shao-Kang Lee, the primary objective of the PERP crypto is to develop a contract trading platform that anyone can use. Unlike other protocols, PERP crypto utilises the vAMMs, whose initial liquidity is set by the operator instead of order book model of centralised exchanges.

The PERP crypto on 8 August witnessed a loss of 1.65% at 6:00 AM (GMT +1) and a volume loss of over 30%, according to CoinMarketCap. 

Why is PERP crypto trailing? 

The exact reason for the PERP crypto's dip is hard to imagine considering it has witnessed a positive run so far in the past 30 days. In fact, over the past month or so, it had amassed gains of over 55% and over 25% over the past week or so.

The dip is surprising, considering the overall crypto market was up by 2.77% as on 8 August with a comprehensive market cap of US$1.12 trillion. The dip's effect was visible as its RSI dipped to 66.66.

Image credit: Trading View

However, the MACD line is still managing to stay above the signal line, which may be due to the rally it had witnessed over the past month or so. But the signal line could catch up with it if the dip continues any further. 

PERP crypto's price performance 

The 268th-ranked PERP crypto, on Monday, was trading at US$1.11 with a trading volume of US$ $1,18,87,497 as per CoinMarketCap. The Perpetual Protocol enjoyed a live market cap of US$9,87,88,014 with 8,87,75,000 PERP coins.

Even though the PERP crypto witnessed a rally, today's dip showcases the volatility in the token. That is why the market participants must ensure that they do their market research properly before entering the crypto market. Any decisions taken without proper market research could result in substantial financial losses.

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