Within the crypto landscape, a recent surge of interest has been observed towards CYBER, a relatively poorly recognized token. In preceding weeks, CYBER has experienced significant appreciation, and traders are shelling out up to 2000% annualized in fees when purchasing these tokens on margin. This decision however, presents a considerable risk of investors being left thoroughly exposed; the prevailing trend, after all, is the transient life span of most market upswings within the pervasively bearish ecosystem.
The particular surge of interest in question involves CyberConnect’s CYBER token, which has noted a remarkable doubling in the past week alone. Application within a “Web3 social network”, the current market cap of CYBER stands at $113 million, according to CoinGecko. Additionally, in the past 24 hours, there’s a spectacular increase in trading volumes which have surged up to $225 million on various crypto exchanges from Monday’s comparatively modest sum of $30 million.
Underscoring the mounting enthusiasm among traders, certain data indicate that investors are paying above 2000% to purchase the tokens through a margin account. It’s noteworthy, however, that CyberConnect could practically be the imminent crypto fad. Some precedents, like Friend.tech, soared in their popularity for a short while but then saw their revenue dwindle by 95% within a little over three weeks, stressing the volatile nature of new entries.
CyberConnect empowers developers to create applications pertinent to digital identity, content, and friendships using blockchain technology, with a unique handle for each user account represented by an ERC-721 token dubbed CyberID. They also offer CyberGraph, a smart contract that documents users’ content and social links.
Rises in funding rates, constituting periodic payments between traders in perpetual futures markets, have ratcheted up to an annualized 2190% on Bybit and Bitget, and escalated to 1500% on Binance. These rates underscore the difference between spot and futures contract prices. When future costs supersede spot, traders gain by going long while their counterparts going short taper off and pay a fee. This development posits an optimistic scenario surrounding CYBER, with long traders shelling out premium rates.
Furthermore, according to the available data, a whopping 74% of all CYBER volume has been traded on Binance, followed by the Korean exchange, UpBit, which traded CYBER tokens worth $70 million. To highlight the volatility inherent in such nascent endeavors, Friend.tech’s debut raked in a commendable 4,400 ETH (approximately $8.1 million) in trading volume, only for the platform’s transactional activity to plummet 95% from peak just a little over a week later.
Source: Coindesk
