"AMMs Tumble, BNB Surges, AI's Mixed Signals in Crypto's Final February Week"
1min readTop 3 Crypto Narratives to Watch For the Last Week of February
The crypto market is abuzz with three key narratives as we approach the final week of February. Automated Market Makers (AMMs), BNB Ecosystem Coins, and AI are the top three crypto narratives to watch for the last week of February. AMMs are facing a challenging week, with all top seven coins in red, but potential catalysts like Unichain’s growth and competition in Solana’s DEX space keep them relevant.
The BNB ecosystem is gaining momentum with CZ’s renewed advocacy, an AI-focused roadmap, and surging activity on PancakeSwap. Meanwhile, the AI narrative is showing mixed signals. While the broader AI crypto market struggles, projects like Story (IP), CLANKER, FORT, and BNKR are capitalizing on niche use cases.
Automated Market Makers (AMMs)
AMMs coins have had a rough week, with all seven top seven coins in red. Automated Market Makers are decentralized exchanges that allow users to trade digital assets without using a traditional order book. They rely on liquidity pools, where users provide funds that facilitate trading and earn fees in return. This model enhances liquidity and removes the need for centralized intermediaries, making AMMs a crucial part of decentralized finance (DeFi).
RAY is the biggest loser among the top AMMs. Rumors about Pumpfun launching their own AMM solution could impact Raydium’s usage and fee generation, causing its price to fall almost 30% in just 24 hours.
UNI and CAKE are both down 15%, as the market doesn’t seem excited about Uniswap’s new chain, Unichain. Additionally, CAKE is correcting after its recent surge alongside the rising BNB ecosystem.
However, RAY continues to be a dominant force in Solana, which could lead some users to question whether the recent drop isn’t an overreaction. Chris Chung, founder of Solana decentralized exchange aggregator Titan believes that this could be good for the Solana ecosystem after all.
“The fact that pump.fun is developing its own automated market maker (AMM) is no surprise – it’s an obvious business move. They’ve created so much volume with meme
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