On Monday, SNX, the native token of decentralized liquidity platform Synthetix, increased by 12.5% as a result of substantial outflows from top digital asset exchange Binance.According to CoinMarketCap, volume over the last day has increased by more than 250% to $96 million. According to Lookonchain, one newly established wallet withdrew SNX tokens worth $7.7 million from Binance.
Token outflows often indicate a purchasing pattern since traders desire to keep complete control of their assets so they may participate in governance or guarantee a yield.Along with SNX withdrawals, the wallet in question also made livepeer token (LPT) withdrawals totaling $3.9 million, which led to a 17.5% increase in each withdrawal’s value.The price increases of these two assets coincide with a general downturn in the bitcoin market.Following a week that saw $60 billion erased from cryptocurrency’s total market cap, bitcoin (BTC) and ether (ETH) continue to trade below range lows of $26,000 and $1,300, respectively.During these downturns, cryptocurrency trading pairs’ liquidity frequently contracts, resulting in a volatile environment.
In this instance, LPT token’s 2% market depth on Binance is just $70,000 to the upside and $270,000 to the downside.By buying or selling those sums, a trade can change the asset’s price by 2%.Conversely, astute traders might also lure this recent buyer into their position by using the fact that the assets were bought in low-liquidity circumstances with considerable slippage, meaning pressure would be applied even with the smallest move to the downside.