Spark crypto price crashes despite surging staking inflows
Spark crypto price has undone the recent gains. It has crashed by over 57% from its highest point this month and is sitting at its lowest swing since July 22.
- Spark crypto price has plunged by 57% from its highest point this month.
- The total value locked in its ecosystem has jumped to a record high.
- Spark’s staking market capitalization has jumped to $155 million.
Spark (SPK) token dropped to $0.08075, giving it a market capitalization of over $89 million, down from the all-time high of $190 million.
SPK falls despite rising staking inflows
The Spark crypto token has plunged even as the staking market capitalization jump. Its staking market cap jumped by over $17 million in the last 24 hours to $155 million. This is a big increase from over $65 million on July 4.
The surging staking market cap is a positive sign, indicating that these investors anticipate the price will continue rising over time.
Spark’s network is also performing well as the SparkLend total value locked jumped by $11.4 million to over $4.72 billion. Its total deposits stood at over $6.98 billion and have generated $64.4 million in revenue.
Further data shows that the total assets in savings jumped by $19 million in the last 24 hours to $2.26 billion. Altogether, the network has over $7.3 billion, up by 17% in the last 30 days.
A potential issue with the Spark token is the ongoing dilution. According to CoinMarketCap, it is releasing 4.65 million new tokens worth $373,550 each day. Its next key unlock will happen in June next year when it will release 904.6 million tokens. These unlocks will continue through 2035.
Spark crypto price technical analysis
The 12-hour chart shows that the Spark token has crashed in the past few days, moving from a high of $0.1900 on July 23 to the current $0.083. It has moved below the 61.8% Fibonacci retracement level at $0.0907.
SPK price has moved below the 25-period Exponential Moving Average, a sign that bears are in control. Also, the two lines of the MACD indicator have formed a bearish crossover.
Spark token’s Relative Strength Index has moved from the extreme overbought point at 90 to 49. Therefore, the token will likely continue falling as sellers target the 78.60% retracement point at $0.06380.
