The METIS token has been on fire lately, boasting an impressive surge in its price by more than 50% this week alone. Just on Tuesday, it hit a high of $83, a massive leap from its low earlier this year, which was under $8. This bullish run has also continued for the past couple of weeks, propelling its market cap to a hefty $326 million.
So, why this sudden rise in the METIS token’s value? Well, METIS is a blockchain project led by Natalia Ameline, who happens to be Vitalik Buterin’s mother, the co-founder of Ethereum. The project operates as a roll-up platform atop Optimism’s system, which is drawing more attention and unique users.
Its aim? To empower developers to craft top-notch applications in vital sectors like DeFi, gaming, NFTs, and bridges. Big names like AAVE, QiDao, Stargate, and Hera Finance are active players in this growing ecosystem.
Two significant factors fueling this recent surge: Firstly, the launch of the Metis Ecosystem Development Fund (Metis EDF), allocating a generous $100 million to developers within its ecosystem. These funds, totaling 4.6 million METIS tokens, will be channeled into sequencer mining, funding retroactively, and launching fresh projects, all geared towards bolstering the ecosystem.
The plan also involves decentralizing the network’s sequencer by early next year, aiming to further expand on this with the additional $100 million, on top of Aave’s $5 million incentive program.
Secondly, METIS’s price hike is attributed to the growing influx into its ecosystem. Data from its website illustrates the network’s handling of over 9.9 million transactions, with blocks recently crossing the 10 million mark. There are now over 479,000 wallet addresses within the ecosystem, and the total value locked (TVL) has surged past $570 million.
Glancing at the daily chart, it’s evident that the METIS token has been on a robust upward trajectory over the past few months, gaining even more momentum after the EDF program’s launch. Throughout this ascent, METIS has comfortably maintained levels well above the 50-day and 25-day Exponential Moving Averages (EMA).
However, it’s worth noting that it’s currently highly overbought, as seen in the surging Relative Strength Index (RSI) and Stochastic Oscillator. This might prompt some traders to start pocketing profits, potentially leading to a pullback in the token’s value in the upcoming days. In such a scenario, a retest of support around $60 could be in the cards. Yet, looking ahead, the coin might just resume its upward trend as traders keep the momentum going.
