PONS rises 13% as buybacks and leverage build – THESE 2 forces face ONE test
Could PONS’ strongest catalyst become its biggest test once buyback demand slows?
Pons [PONS] rose 13% over the past day as bullish sentiment and protocol-backed buying strengthened demand.
The protocol generated roughly $19.64 million in Earnings so far in September. It then channeled $13.82 million into its buyback program.
Buybacks absorb tokens from the market, potentially tightening available supply and supporting prices when demand rises. Optimism surrounding crypto assets, particularly the Robinhood Chain, also gave PONS another tailwind.
Meanwhile, protocol activity continued to improve. Fees rose from $2.49 million on the 16th of September to $2.95 million at press time.
Can PONS derivatives sustain the rally?
Both Spot and Perpetual data largely reflected PONS’ bullish outlook. Open Interest increased by double digits to $188.57 million. Meanwhile, the Funding Rate remained significantly positive at 0.0201%.
Together, both metrics showed that traders expanded their exposure while favoring long positions.
However, Spot flows introduced a more fragile signal.
After $3.94 million in Netflow during the previous two-day sell-off, Netflow reversed to -$47,890. The reversal suggested that investors had resumed gradual buying. Yet, its scale remained small compared with previous selling.
PONS had derivatives conviction behind it, but Spot support was only beginning to rebuild.
Are whales still driving PONS?
Whales remained central to the rally, with the Whale Retail Delta staying positive at 0.101%. A positive reading indicated whale-led activity, while a negative reading would suggest stronger retail participation.
However, the Delta declined from 0.349% on the 17th of September to its current level. This decline suggested retail participation had increased, although whales remained dominant.
For now, buybacks, rising Fees and leveraged positioning kept the outlook bullish. Its durability could depend on Spot buying strengthening as whale dominance gradually declines.
Final Summary
- PONS rose 13% after the protocol directed $13.82 million toward token buybacks.
- Open Interest and the Funding Rate showed strong bullish positioning across PONS derivatives.
