Spark Protocol Token Sees Strong Recovery Amid Rising TVL
Spark Protocol’s token, SPK, has seen a notable recovery in recent days. Investors are buying the dip, pushing SPK to $0.045 on June 30. This is a 25% increase from its lowest point this year. The token’s market cap is now close to $40 million.
The total value locked (TVL) in the network is nearing its all-time high. It’s currently at $6.28 billion. This is just below the record high of $6.7 billion.
Spark’s yield-bearing products are gaining popularity. The savings TVL has surpassed $3 billion, with a 30-day average savings rate of 4.5%. Lending demand is also increasing, with TVL nearing $3.5 billion. This growth mirrors other lending platforms like Aave and Maple Finance.
Investors believe SPK is undervalued compared to its peers. For instance,despite having a smaller TVL of $5 billion,Pendle’s valuation is $1 billion. JustLend’s valuation is $336 million,even though Spark’s TVL is significantly higher at $3.6 billion. The token’s fully diluted valuation is smaller than these competitors, suggesting potential for further price increases.
Though, the token’s supply dynamics may have caused the recent price dip. The circulating supply is 894 million, with a total cap of 1 billion, indicating future unlocks that could lead to dilution.
Technical analysis shows a bullish trend. SPK has formed a W pattern, with the neckline at $0.050. The token has moved above the 50-period moving average. A strong bullish breakout is expected,with an initial target of $0.051.
- SPK rose to $0.045 on June 30.
- TVL is nearing its all-time high at $6.28 billion.
- SPK has a bullish W pattern, indicating a likely breakout to $0.051.
