Altcoin
Balancer Protocol declines as BAL exhibits volatility – what’s causing it?
- Balancer’s recent weekly report showed a sharp decline in its TVL.
- BAL token exhibits volatility but stays above the neutral line.
Balancer’s [BAL] Total Value Locked (TVL) has decreased, according to a weekly scorecard. Although the protocol has taken a hit, the Decentralized Finance industry has also been affected by the recent crypto market downturn. As of this writing, Ethereum [ETH], Polygon [MATIC], and Arbitrum, respectively, were the contributors of $1.16 billion TVL on the protocol.
Read Balancer’s [BAL] Price Prediction
2023-24A recent dramatic drop in the TVL stood out from the normal decline. This sudden drop was not due to the market’s movement, according to Balancer’s post.
Instead, a recent protocol change by DefiLlama to no longer include the V1 TVL of Balancer is blamed for the drop. Hence, the protocol’s TVL computation has been impacted by removing the V1 from the calculations.
BAL’s fluctuations on a daily timeframe
BAL has recently been experiencing some volatility, as could be seen by looking at the asset on a daily period. As of this writing, the asset was down over 3%, trading at about $7.2. On 20 January, during the trading session, it saw its value increase by 3.79%.
On 15 February, it recorded its most significant gain of the year so far, gaining 12.43%, which led to a rise in the volume metric.
Balancer was still in a bull trend despite the price decline that was witnessed throughout the examined trading period. The Relative Strength Index line, over 57, denoted a respectable bull trend. Also, the price movement was above the short and long Moving Averages (yellow and blue lines).
How much are 1,10,100 BALs worth today?
Volume and price show convergence
The volume measure similarly echoed the price chart’s apparent rise. With August’s peak being the closest, the volume surge was the highest in recent months. The volume was 13.32 million as of the time of writing, showing typical activity.
Source: Santiment
However, in a spot of good news, all signs suggested that the removal of liquidity from the protocol was not the cause of the decrease in TVL. Notwithstanding its volatility, Balancer’s native token has had a respectable run.
