What to Know
- The native token of MYX Finance skyrocketed from $0.10 to $16 over just 60 days, resulting in over $40 million in liquidations within a single day. Analysts believe this rapid increase may have been fueled by a short squeeze and limited liquidity, raising concerns about potential market manipulation.
- Despite having only $55 million in total value locked (TVL) and $5 million in open interest, MYX has a fully diluted valuation of $17.7 billion.
- With more than 80% of its tokens locked and just 197 million available in circulation, MYX’s limited supply makes it highly vulnerable to sudden price changes and coordinated trading.
Traders took a significant hit this week as speculation around MYX Finance’s token resulted in over $40 million being liquidated within 24 hours due to its price increasing from $0.10 to $16 in the last two months.
Crypto analyst Skew noted on X that MYX had “traded pretty normally between $2 & $4” until it experienced a sudden rise during a targeted short squeeze that pushed the price from $4 to $8.
“Clearly in the aftermath of that move, some liquidity provider or market maker got massively carried out, especially with sizable liquidations occurring,” they remarked.
MYX Finance, a decentralized exchange, only holds a TVL of $55 million and an open interest of $5 million, especially when compared to HyperLiquid, which has $712 million and $12.8 billion. Despite the comparisons, MYX enjoys a fully diluted value close to $17.7 billion, nearing the market cap of HYPE at $17.5 billion. Notably, over 80% of MYX’s supply is currently locked away, with only 197 million tokens circulating, rendering it subject to manipulation risks owing to its constrained supply.
The swift ascent of MYX has made it the 36th largest cryptocurrency by market capitalization.
