MYX Records Second Lowest Revenue – A Challenge to Recovery

MYX Finance [MYX] has managed to achieve a 5% increase in value over the last 24 hours, even as the wider cryptocurrency market faced significant declines. However, despite this price rise, overall market sentiment remains uncertain. Different segments of the market seem to be vying for control, resulting in a mixed outlook for MYX.

Key Takeaways

MYX Finance experienced a 5% increase in value amid a broader market downturn.
On-chain activity shows a weakness in user participation, with revenues hitting a two-year low of $358.
Despite this, bullish indications are present in centralized exchange trading, with more traders taking long positions.
Future price movements may favor a rebound due to concentrated liquidity above current levels.

MYX Finance [MYX]

Current On-Chain Sentiment is Weak

On-chain metrics reveal that participation in MYX Finance is insufficient to support a continual price rally. Revenue is one of the most dependable indicators of a protocol's health since it reflects earnings from trading fees and other ecosystem activities. Currently, MYX's revenue is at the lower end of its historical range, standing at just $358 for the month, which is the second-lowest figure recorded. A decline in revenue typically signals a drop in user activity, which can reduce demand for MYX and negatively influence its price dynamics, as the protocol fees are also low, recorded at only $45.

MYX income statement
Source: DeFiLlama

In terms of total value locked (TVL)—the amount of capital staked in liquidity pools to earn fees—this has remained fairly stable. This indicates that existing users are sustaining their investments in the protocol, even with a decrease in activity.

Bullish Activity in Exchanges

Conversely, trading activity on centralized exchanges suggests a more positive trend. Data points show increasing speculative interest, as traders are positioning themselves for potential gains. The Open Interest–Weighted Funding Rate, a measure indicating whether perpetual traders are generally optimistic or pessimistic, has shown a bullish leaning for MYX. Currently, the Funding Rate stands at a slight positive of 0.0029%, indicating that there are more long positions than short ones, albeit the difference remains minimal.

MYX open interest weighted funding rate.
Source: CoinGlass

This bullish sentiment is particularly notable given the overall reduction in market exposure. Open Interest has decreased by $3.5 million during this timeframe, indicating capital exit from the market, with long traders experiencing the majority of recent losses compared to those in short positions within the MYX perpetual market.

Looking Ahead: Drop or Rebound for MYX?

The Liquidation Heatmap data provides additional insight into the potential directional movement of MYX. This analysis shows clusters of unfilled orders compressing price action within a specific range, which often precedes significant price changes in either direction. Interestingly, liquidity seems to be more concentrated above the current price level. These denser zones can act as magnets for price movement, particularly when long positions dominate.

MYX liquidation heatmap
Source: CoinGlass

In summary, while short sellers have recently made some gains, the overall speculative environment appears to favor a potential rebound for MYX. As sentiment on exchanges gradually shifts towards long positions, MYX may have the potential for a stronger recovery if market momentum aligns positively.

Conclusion

The presence of mixed signals in the cryptocurrency market for MYX emphasizes the importance of monitoring both on-chain activity and centralized exchange behavior. Given the current trends, observers should stay alert to the potential for significant price movements in the near future.