Venice Token [VVV] dropped 13% to $16.03 at press time.
However, the decline contrasted sharply with Venice Token’s improving protocol-level performance.
DeFiLlama data showed record Quarterly Earnings of $1.1 million. Monthly Earnings also reached a record $654,000.
The earnings growth suggested that activity and platform usage increased despite recent market turmoil.
Even so, stronger protocol performance had yet to support VVV’s price. This divergence raised two questions. Was VVV entering a bearish phase, and which traders were driving the decline?
Are derivatives traders pressuring VVV?
VVV’s perpetual market showed the clearest signs of weakening trader sentiment. The Funding Rate fell from 0.0141% on the 28th of August to 0.0001% at press time.
The Funding Rate remained marginally positive. Therefore, the decline showed weakening long demand rather than confirmed short dominance.
However, VVV’s Long/Short Ratio fell to 0.86, according to CoinGlass. A reading below one indicated that short accounts outnumbered long accounts within the measured market.
Together, both Metrics pointed toward a weaker derivatives bias. Continued short positioning could maintain pressure on VVV’s price.
Are spot traders buying VVV?
By contrast, the altcoin’s Spot Market Netflow remained negative over recent sessions.
Approximately $267,000 left centralized exchanges within 12 hours. Negative Netflows had also persisted for three days.
These outflows could indicate that holders were withdrawing VVV from exchanges, reducing immediately available selling supply. However, negative Netflows alone cannot confirm fresh buying or long-term holding.
VVV therefore faced a clear market split. Derivatives traders leaned bearish, while Spot outflows suggested that exchange-side supply was tightening.
If Spot accumulation continues, VVV could attempt a near-term recovery. However, persistent derivatives pressure could delay that move despite Venice Token’s record earnings.
Final Summary
- Venice Token fell 13% to $16.03 despite record protocol Earnings. VVV recorded $1.1 million in Quarterly Earnings.
- VVV’s Funding Rate fell sharply but remained marginally positive. The declining Funding Rate showed weaker long demand, rather than confirmed short dominance.
