Digital tokens Storey (IP) and Act (ACT) faced a sudden drop of around 20% today but immediately recovered part of this decrease. While the exact reason for this severe fluctuation is unclear, data indicates that the high volume of trades on the Binance futures exchange played a key role in this event. These two tokens, belonging to independent projects, almost simultaneously experienced a sharp price decline followed by a relative return. Token ACT is related to artificial intelligence, and IP cryptocurrency is developed for intellectual property registration on the blockchain. They dropped by 27% and 21.5% respectively but have partially recovered; for instance, ACT has shown a net growth of about 2.5% in the past 24 hours. According to data released by the Coinglass platform, over 1.27 million future transactions of ACT have been conducted on Binance exchange, more than double the second platform, BingX. Additionally, the total profit from ACT futures trading on Binance is estimated at over $20.4 million, indicating Binance’s significant role in price discovery of these tokens. When large positions are suddenly liquidated (usually due to stop-loss or margin call activation), prices come under severe pressure. In fact, derivative markets now surpass spot markets in terms of volume and transaction speed, making valuable tokens more vulnerable to fluctuations compared to the past. Ultimately, these severe fluctuations once again indicate that in the cryptocurrency market, especially for new projects, short-term fluctuations and activity in the derivative market have taken precedence over long-term valuation. You can monitor the live prices of all tokens and cryptocurrencies on the momentary digital currency price page.
