The SPARK protocol smoking has been reflected in recent days while investors buy the dip and when the total value in the network is approaching its highest point.
Spark (SPK) rose today to $ 0.045, 30 June, the highest level since 24 and 25% above the lowest point this year. The rebound has brought its market capitalization at almost $ 40 million.
The repair of SPK is because data shows that the TVL has risen in the network $ 6.28 billionJust shy for the all time of $ 6.7 billion. This is a considerable jump of the $ 3.8 billion registered at the start of the year.
The increase in TVL is a sign that the demand for Spark’s yield -bearing products is increasing. The Savings TVL has crossed the milestone of $ 3 billion, while the average savings has risen from 30 days to 4.5%.
The demand for Spark’s credit solution is also increasing, with the total value locked nearly $ 3.5 billion. This reflects the growth of other credit protocols such as Aave and Maple Finance.
The rebound of SPK is also fed by the growing image among investors that token is strongly undervalued compared to his colleagues. For example, Spark’s fully diluted appreciation is still smaller than Pendle’s (Pendle) $ 1 billion, despite the fact that Pendle has a smaller $ 5 billion TVL.
It is also smaller than the valuation of $ 336 million of $ 336 million, although Spark’s TVL is considerably higher at $ 3.6 billion.
The supply dynamics of the token is a potential reason for the recent SPK price dunge after his AirDrop ignition. Although the circulating stock is 894 million, the total supply is capped at 1 billion, which suggests that substantial future unlocks can lead to dilution.
Technical analysis of spark price
The hour table shows that SPK crashed and at $ 0.035 after its airdrop. It has since been reflected with more than 25% and has moved slightly above the 23.6% Fibonacci retracement level.
The token has also formed a bullish W pattern, with the neckline on the 50% retracement level of $ 0.050. Moreover, it has been moved above the progressive average of 50 periods. That is why the Spark protocol price will probably see a strong bullish breakout, with the initial goal that is set at the 50% retracement point around $ 0.051.
