The Grass crypto token continued its strong rally, becoming one of the best-performing airdrops of the year.
Grass (GRASS) surged to an intraday high of $3.9587, representing a 2405% increase from its lowest level after the airdrop. This rally has pushed its market cap to over $893 million and its fully diluted valuation to $3.6 billion.
Grass’ performance has diverged from other newly minted altcoins, which have sharply declined from their all-time highs. For instance, Wormhole (W), the popular bridge network on Solana, has dropped by 87% from its post-listing high.
Other tokens, such as Hamster Kombat, Notcoin, ZkSync, and PixelVerse, have all fallen by double digits from their all-time highs.
Grass’ strong performance is likely tied to how the network launched its airdrop. About 10% of its token supply was allocated to Airdrop One, in which approximately 100,000 users received 100 GRASS tokens for downloading and installing the extension.
At the same time, the developers introduced staking, resulting in about 35% of all tokens in circulation being staked, with an annual percentage yield (APY) of about 50%. In comparison, most tokens like Ethereum (ETH) and Solana (SOL) yield less than 6%.
Analysts believe that Grass Network’s revenue could rise to about $300,000 per month if it retrieves 300TB of data monthly. As the network scales, the cash distributed to investors is expected to increase.
Grass’ price has also been driven by fear of missing out among retail traders, as evidenced by the rising trading volume. This FOMO has intensified as investors remain optimistic that cryptocurrencies will continue to rise after Donald Trump won the U.S. election.
Grass crypto price gets overbought
The hourly chart indicates that the GRASS token has been on a strong bull run in recent days, moving from about $0.1 to nearly $4.
Grass remains significantly above the 50-period moving average, which is a positive indicator.
However, there is a risk of a pullback. The token has formed a bearish engulfing pattern, where a large bearish candlestick fully covers a prior bullish one. Additionally, it has developed a rising wedge pattern, while the Relative Strength Index and the MACD have reached overbought levels and are pointing downward.
As a result, the GRASS crypto price may pull back to retest $3 before potentially bouncing back. In the longer term, strong staking rewards could push the price above $5.
Read the full article here