Canto Token Surges 250% Then Crashes 60% Amid Market Volatility

CANTO, the native token of its namesake's layer-1 blockchain, underwent a tumultuous trading session on Thursday. The token surged by 250% within a short period, only to plummet by 60% over the subsequent six hours. This dramatic fluctuation highlighted the volatility and uncertainty surrounding the platform.

The platform had previously experienced a significant decline in its total value locked (TVL) and trading interest following a frenzied launch last year. At its peak, CANTO reached a market cap of $238 million with $204 million in TVL. However, a network outage led to a mass exodus from the chain, resulting in a drastic reduction in its TVL to just $4.6 million worth of assets locked on the chain.

This volatile period for CANTO coincided with an influx of new layer-1 and layer-2 blockchains, leading to an oversaturation of protocols and liquidity. The project has not provided any updates on its official channels since September, despite earlier promises of a new roadmap to be released soon. This lack of communication has further exacerbated the uncertainty surrounding the platform.

Analysts attribute Thursday's price surge to a low liquidity, low volume impulse in market buys, which caused a temporary spike. However, this was quickly followed by a sell-off as underwater positions took profits, leading to the subsequent crash. The lack of updates and the oversaturated market have contributed to the platform's current state of uncertainty and volatility.