Cream Finance (CREAM) Surges 65%: Emerging Star in the Cryptocurrency Market?

  • High whale activity is driving the recent price surge in CREAM, but other aspects of the protocol suggest caution.
  • Despite the impressive trading volume increase, Cream Finance’s Total Value Locked (TVL) presents a bearish outlook.
  • “Whales, owning a significant portion of CREAM, have been the primary drivers behind the recent price movements.” – AMBCrypto

Explore the dynamics behind CREAM’s recent price surge and its sustainability in the volatile crypto market.

Unpacking the Surge in CREAM’s Market Activity

The native token of Cream Finance, CREAM, has seen an unexpected price rally of 65.25% over the past week, primarily fueled by a 378.65% increase in trading volume, pushing the price close to $75.

Whale Movements and Market Impact

Recent data from IntoTheBlock reveals a significant uptick in whale activities, with 94.74% of CREAM holders classified as whales. These major players executed 1,362 transactions in the last 24 hours, significantly influencing the market price.

Concerns Over Cream Finance’s Market Health

Despite the price rally, Cream Finance’s TVL paints a different picture. Following a Flash Loan attack in 2021, the TVL plummeted from over $2 billion to just over $15 million, indicating a loss of trust and a decrease in protocol interaction.

Future Outlook for CREAM

While the immediate future may see further price increases, the low TVL and potential for volume decline could lead to a price correction, possibly dropping to as low as $53.59.

Conclusion

While CREAM’s recent performance has been notable, the underlying issues such as a significant drop in TVL and the reliance on whale transactions suggest caution. Investors should watch for signs of sustained improvements in protocol health and market breadth beyond whale influence.

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