Canton Network Experiences Growth Driven by SEC Developments

Canton Network Experiences Growth Driven by SEC Developments – Will CC Maintain Momentum?

Canton Network, focused on providing blockchain infrastructure for institutional and corporate applications, continues to forge significant partnerships. The network's native token, CC, has recently benefited directly from these developments, showcasing an 11% gain in just 24 hours—earning it the top spot as the top daily gainer, according to CoinMarketCap data.

Key Takeaways:

Canton Network's CC token surged by 11% following strategic partnerships and favorable SEC news.
89% of investors foresee further price increases for CC.
Regulatory support has allowed tokenization activities by DTCC on the Canton Network.
Liquidity in both spot and derivatives markets shows growing confidence among traders.
Caution advises that while the market is bullish, there are notable liquidity clusters below current levels that could invite temporary price corrections.

Canton Network.

Investor sentiment has also seen a notable increase, with the highest level of bullishness observed since CC's inception. Data from CoinMarketCap indicates that 89% of participants anticipate further price rises. As momentum builds, market players are increasingly wagering on continued growth over the coming weekend.

Partnerships Fueling Price Growth

Canton Network is regaining market interest after The Depository Trust & Clearing Corporation (DTCC) received a non-action letter from the U.S. Securities and Exchange Commission (SEC), which paves the way for tokenized treasury infrastructure on the network. This regulatory approval enables the DTCC to tokenize assets from its Depository Trust Company (DTC) using the Canton Network. The news has generated bullish interest, prompting investors to position themselves for potential gains leading into the weekend.

This collaboration adds to a series of strategic partnerships that have historically bolstered CC's price performance. In the past, Canton Network has experienced notable price increases following key integrations, a trend that helps keep prices stable even during periods of prevailing negativity in the broader crypto market.

Earlier this week, a partnership with modular blockchain oracle RedStone (RED) propelled CC upwards by 5%, and trading volume surged by 288% to reach $21.79 million. As of now, trading volume has slightly leveled off at $28.69 million, and the market capitalization stands at $3.13 billion.

Liquidity Increases in Spot and Derivatives Markets

Market positioning indicates a growing confidence among both retail and derivatives traders. In the perpetual market, the Open Interest–Weighted Funding Rate remains positive at around 0.0060%, signaling that long positions are still prevalent.

Open Interest-Weighted Funding Rate

Recent data reveals that $14.28 million has flowed into long contracts, with traders willing to pay higher fees to maintain their upside exposure.

Spot market trends reflect this same pattern, with retail investors making net purchases totaling $61,640 over the past day. Additionally, net inflows for the week indicate that $6.40 million has been invested into CC over the last seven days.

Market Caution amid Bullish Sentiment

Despite a strong bullish trend, liquidation data shows that traders are exercising caution.

The Liquidation Heatmap indicates heavier liquidity clusters positioned below the current price level, as opposed to above it. These clusters—often seen in green and yellow—tend to draw price action over time.

CC Liquidation Heatmap

With an increase in lower liquidity, CC might experience a pullback toward these lower levels. However, this could be viewed not as a negation of the overall bullish trend but rather as a short-term correction before another move upward.

Overall, market sentiment remains positive, buoyed by regulatory clarity from the SEC's non-action letter, ongoing institutional partnerships, and steady capital inflows into the derivatives market.

Concluding Remarks

Canton Network continues to attract notable attention due to its partnerships, regulatory backing, and robust market positioning. The promise of ongoing growth in the cryptocurrency space appears strong, thanks to investor optimism and institutional support.