Its pretty obvious that the HEX price is down tremendously. While it's easy to pinpoint sellers as the primary cause, there seems to be another critical factor influencing the decline. Let's delve deeper to understand the nuances of this recent trend.
A Shift in Liquidity Pairings
Before the launch of PulseChain, HEX's liquidity was primarily paired with USDC. This meant that to lower the HEX price one needed to first have HEX and then sell it for USDC. There was only one avenue to dump the HEX price. However, the dynamics have now changed.
The central liquidity pairing of HEX is now PLS. This means that individuals who sell PLS inadvertently affect the HEX price as well. This indirect dumping occurs through order routing. A person put a sell order with their PLS for USDC. The DEX first sells the PLS into HEX and takes that HEX and sells it for USDC. This of course lowers the HEX price!
To add another layer to this complexity, PLS is significantly paired with PLSX. Consequently, any sales of PLSX now have a ripple effect on the HEX price chart.
A New Beginning for the Ecosystem
The current scenario represents a complete reset for the ecosystem. Previously, a sell-off in HEX was the sole factor that could bring down its price. But now, the market dynamics have expanded, with PLS and PLSX sales also having a significant influence on the HEX price.
Unfortunately, this has weakened of the HEX price floor. All the large PLS & PLSX sacrificers have more sell pressure than when they only had HEX. Still, this potentially sets the stage for a massive surge in the future. The positions we can accumulate today have not been seen for years. Once a sufficient amount of distribution occurs, the stage is set for potentially historic price appreciation
How you might ask? Well, this mechanism works in reverse as well; a boost in PLS and PLSX could equally uplift the HEX price.
Looking Towards a Promising Future
Despite the present volatility, there's hope that this reset might pave the way for substantial growth in the HEX ecosystem. It's a time of adaptation, where the price floor of HEX may not appear as robust as before, but holds the promise of fostering a fertile ground for future developments.
Remember, the current market dynamics work both ways, promising potential highs just as it has led to lows. It's an exciting phase for the HEX community, possibly heralding a period of substantial growth and prosperity.
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That's gonna be great someday! So the move is to accumulate as much as possible while we are in this stage until we run out of sellers.🌙
Well said. I needed to hear that too as I new that but it's refreshing to hear from someone else. Thanks for posting that.