Why Bio Protocol's Token Increased Over 70% Today

Bio Protocol (BIO), the native token of the decentralized science platform Bio Protocol, experienced a remarkable surge after the project enhanced its staking options for BIO and other tokens within its ecosystem on the Ethereum mainnet.

Key Takeaways

Token Surge: BIO rose by as much as 71.6% to a five-month high of $0.103 before settling at $0.084.
Staking Expansion: The recent price jump was fueled by the expansion of staking opportunities for BIO tokens, allowing users to earn additional rewards.
Market Activity: Over 100 million BIO tokens have been staked since the launch, with a 4x increase observed in staking activity on the Ethereum mainnet.
Growing Adoption: Increased user engagement and positive social sentiment around BIO indicate strong market interest.
Market Patterns: BIO is nearing a bullish double bottom pattern, suggesting a potential price increase if certain resistance levels are surpassed.

Why Bio Protocol's Token Increased Over 70% Today

Main Content

On August 7, Bio Protocol saw its native token, BIO, climb as high as 71.6%, reaching a five-month peak of $0.103. As of the latest updates, it now stands at $0.084, with a market capitalization rising from $124 million yesterday to $164 million today.

This significant surge occurred amidst a high trading volume, with nearly $470 million worth of BIO tokens exchanged, reflecting a more than 2,100% increase compared to the previous day.

The rally in BIO's price follows the announcement by Bio Protocol that it expanded staking options for both its BIO token and BioDAO tokens on the Ethereum mainnet. For those unfamiliar, BIO serves as the core token of Bio Protocol, a decentralized science (DeSci) platform dedicated to funding and promoting biotech research in various areas, including longevity, women's health, and synthetic biology. This is achieved through community-governed BioDAOs.

Holders of BIO and associated ecosystem tokens who stake their assets can earn BioXP points. These points provide eligibility for exclusive platform sales, offering early access to token launches from emerging projects within the Bio Protocol ecosystem. As of the most recent updates, over 100 million BIO tokens have been locked in staking on Ethereum. The number of staked BIO tokens increased fourfold since staking was initiated on the ETH mainnet yesterday.

Bio Protocol

This latest staking expansion follows a successful launch on Base, which saw over 25 million BIO tokens locked in just a few days. By staking tokens for rewards, holders decrease the available circulating supply on exchanges. If demand for BIO continues to grow, supported by incentives like BioXP points and access to Ignition Sales, this reduction in supply could create scarcity and drive prices up, especially when market sentiment is strong.

Additionally, on-chain activity for Bio Protocol has surged, with data from Santiment reporting that daily active addresses on the network jumped over 370% in the last day, rising to 859 compared to 180 previously. A rise in daily active addresses typically signifies increased user interaction with the protocol, a bullish indicator of potential growth and interest.

The weighted social sentiment around BIO has also improved, reflecting a more favorable perception among retail investors. Currently, BIO appears to be forming a classic double-bottom reversal pattern on the daily chart. The first low formed around $0.041 in April, followed by a rebound that stagnated near $0.103, creating the neckline of this pattern. The second low occurred in late June at about $0.042, before a significant rally led to a brief breach of the neckline on August 7, though it has since fallen back below that level.

This price action has resulted in the characteristic “W” shape typical of a double bottom. A sustained daily close above $0.103, with strong volume, would confirm this pattern and suggest a reversal into a bullish trend.

Current momentum indicators are also supportive. The 20-day simple moving average has recently crossed above the 50-day moving average, indicating that short-term momentum surpasses medium-term trends. The Supertrend indicator has turned green, further strengthening the bullish outlook. Meanwhile, the Relative Strength Index (RSI) has retreated to 64, having briefly entered overbought territory. This suggests that the recent price pullback may be a normal correction following a strong rally, rather than signaling an impending downtrend.

According to the setup described, immediate resistance lies around the neckline at $0.103. If BIO breaks above this key level decisively, it could initiate a price movement toward the target of $0.164, derived from the height of the double-bottom formation.

Disclosure: This article is for educational purposes only and does not represent investment advice.