The Plume Network token’s recent listing on Binance, a prominent crypto exchange, generated significant buzz in the community, but ultimately failed to translate into sustained price gains. Despite the initial hype, the token succumbed to selling pressure and thus failed to maintain its profit.
Following its listing on Binance’s spot trading platform on August 18, PLUME’s price jumped 36% intraday. However, it later plunged significantly, sparking concerns about the token’s potential trajectory.
Binance Lists Plume Network Token
As per Binance’s official announcement, the crypto exchange introduced the Plume Network token to the HODLer Airdrops page. This listing came on the heels of the airdrop that sent 150 million PLUME tokens to eligible BNB holders.
BNB holders who met the snapshot criteria between July 24 and July 27, 2024, were eligible for the PLUME airdrop, strengthening community bonds and encouraging loyalty among investors.
Notably, Binance added PLUME to its spot trading platform on August 18, at 15:00 UTC, with pairs available against USDT, USDC, BNB, FDUSD, and TRY. The token was marked with a “Seed Tag,” indicating potentially higher risks associated with trading it. Users were able to deposit PLUME starting at 11:30 UTC on the same day.
Initial Surge Hit with Subsequent Fall
Following the Binance listing and airdrop, the PLUME token saw a notable surge of nearly 40%, with its price at $0.106. According to CoinMarketCap, the trading volume also surged above $56 million on the same day, which even broke past $200 million later.
However, this bullish sentiment was short-lived. Following the initial surge, the Plume Network token price faced intense selling pressure, triggering a bearish reversal. Selling pressure intensified as airdrop beneficiaries cashed out on the newfound liquidity provided by the Binance listing, seizing the opportunity to realize profits. The price soon slipped to $0.0865. The coin continued to decline, reaching $0.0878 by August 17, dashing initial optimism.
What Drives This Price Dip?
In addition to the increased selling pressure, the Plume Network price dip can also be attributed to investor concerns over the token unlock schedule. As per CryptoRank data, more than 70% of the tokens are still locked, with 108 million slated to be unlocked on August 21. After that, 1.08% of the total supply will unlock every month.
This token unlock schedule is expected to create sustained selling pressure as early investors and token holders take profits. The rapid influx of new tokens into circulation could outpace market demand, leading to downward pressure on prices. This fear is further evidenced by the fact that the number of PLUME holders dropped by nearly half since July. This further highlights the waning confidence in the project’s long-term prospects.
Positive Signs Still Exist
As of press time, the PLUME price is at $0.0826, up 0.48%. Over the last week and month, the cryptocurrency has plummeted by a massive 18% and 31%, respectively. Currently, the 24-hour trading volume is marked at about $66 million, down 35%.
Despite this significant price dip, some investors still remain optimistic about the Plume Network token’s future trends. Pointing to the trading volume hike, investors like Crypto King argue that the Binance listing could possibly lift the token’s momentum. King wrote,
“PLUME just got listed on Binance today and the volume has been insanely high. Following the announcement, PLUME [volume] saw a 1200% increase in price over the last 2–3 days and this is crazy. Been telling y’all about Plume Network since the launch and should say, it’s a ticking time bomb. Massive potential. Recognised RWA. Coming weeks should be good. Higher.”
Moreover, Plume leads all networks in RWA holders with over 191,000, exceeding its total token holder base. This also indicates that the token has the potential to make significant returns.
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