- Trader Joe witnessed a price surge in its token.
- The reason may be due to Arbitrum’s airdrop event, which led to a strong flow of money into this ecosystem.
- In terms of long-term factors, JOE still has to consider to achieve sustainable development.
In recent times, the price of the JOE token of Trader Joe, the leading DEX on Avalanche, has surged over 200% and taken the top gainer position on exchanges, including Binance. So what motivated it to do so?
We can clearly see that the reason behind Trader Joe’s impressive price increase is related to the fact that Arbitrum, the top Layer 2 of Ethereum, has now held a huge airdrop for users, causing a large flow of money into the system. Arbitrum ecology. Since then, Trader Joe has benefited when the DEX has developed products on this potential ecosystem.
Not only increasing in value, but the DEX also recorded other positive figures.
According to Delphi Digital’s data, Trader Joe’s trade volume has been increasing since the beginning of the year. At the same time, the trading platform has recently set a new high trading volume of more than $100 million.
In addition, the number of unique wallets on the TraderJoe network increased by over 15% in the past week, according to Dapp Radar.
However, the revenue generated by the Avalanche was also affected due to the lack of activity on the network. This is attributed to Avalanche’s influence as problems with the C-Chain chain keep happening.
This, although not having much impact on the current price of JOE, in the long run, will be a disadvantage for the token.
According to data from DefiLlama, Trader Joe’s TVL on Arbitrum has increased sharply over the past week.
The recent attraction of Arbitrum is an effect for JOE to have a certain excitement, but it is necessary to consider other factors if the DEX wants to develop further.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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