Spark crypto price staged a strong comeback on Wednesday as its staking inflow and its futures open interest soared. The SPK token jumped to a high of $0.1198, up by over 54% from its lowest point this week and 310% above the all-time low.
SPK Staking Inflows Jump
The Spark crypto price has soared this year, driven by data showing an increase in users’ staking assets. Data shows that there are now nearly 4,000 stakers with over 156.50 million tokens valued at over $17.6 million.
An increase in staking inflows is a positive sign for a token, indicating that investors expect the price to continue rising. Spark has more encouraging data, including the jump in its Spark Liquidity Layer (SLL), which has over $3.5 billion in assets.
The SLL is a crucial component of Spark’s network, serving as its capital routing system. It is responsible for minting, bridging, and deploying stablecoin liquidity across other protocols.
SparkLend, a non-custodial lending protocol that allows users to lend their assets and earn a return, has over $4.6 billion in assets. Spark Savings, which has over 187,000 users, has attracted $2.42 billion in assets. These numbers make Spark one of the biggest players in the decentralized finance (DeFi) industry.
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Spark token surged as the total value locked (TVL) surged on Wednesday, a sign of more demand from investors. It rose to $106 million, slightly lower than its market capitalization of over $122 million. Its 24-hour volume jumped to over $719 million.
Still, there are risks to the ongoing Spark price surge. First, the network is unlocking thousands of tokens each day. These tokens are leading to a higher supply, which may affect their price.
Second, the weighted funding rate remains in the red, a sign that investors in the futures market expect the price to be lower in the future.
Spark Crypto Price Technical Analysis
The 12-hour chart shows that the SPK price bottomed at $0.07746 this week. This price was approximately 60% below the highest point of the year.
Spark has formed a bullish engulfing pattern, a popular reversal sign. This pattern comprises a bullish candlestick that fully covers a smaller bearish pattern.
The SPK token remains between the lower and the first support of the Andrews pitchfork. It also remains above the 25-period moving average. Therefore, the coin will likely continue rising as bulls target the all-time high of $0.1865, up by 71% above the current level. A drop below the support at $0.07746 will invalidate the bullish view.
