DeepBook version 3 (V3), an innovative decentralized exchange (DEX), made its debut on the Sui [SUI] network on October 14th, marking a significant milestone.
The launch of its native token DEEP on the same day saw a remarkable increase of over 550% within a week. Starting at $0.016 and skyrocketing to $0.09, the altcoin experienced a surge of five times its initial value before settling at around $0.08.
DEEP’s surge was attributed to its versatile utility within the Sui DeFi ecosystem, as announced by the team.
Though primarily a governance token, DEEP can also be staked for rewards and utilized for trading fee rebates, adding to its value proposition.
“DEEP serves as a means to cover trading fees, offering users discounts based on their trading activity, which encourages increased engagement. These features work in synergy to boost liquidity and streamline trading on DeepBook.”
Furthermore, the DeepBook DEX employs Central Limit Order Books (CLOBs) to maintain low fees, capitalizing on Sui’s high-performance infrastructure.
According to the team, this approach sets it apart from traditional DEXs that rely on Automated Market Makers (AMMs) like Uniswap.
“While AMMs laid the foundation for DeFi, CLOBs are set to elevate the DeFi landscape. Crafted for durability, they offer reduced slippage, enhanced liquidity, and precision—a tailored experience for users’ preferences.”
Forecasting DEEP’s Trajectory
On October 20th, DEEP surged by 49%, further solidifying its impressive performance since its launch.
Despite a marginal retreat in its value, prevailing sentiment on CoinMarketCap favored a bullish outlook on the token.
Nevertheless, a significant portion of traders had adopted a bearish stance towards DEEP, evident from Coinglass’s Long/Short ratio, which indicated that 52% of positions were bearish on the asset, signalling a minor bearish bias.
A decrease in Open Interest (OI) also pointed towards a short-term bearish sentiment among traders, with OI dropping by almost 8% in the DEEP Futures market.
Reduced OI typically signifies diminishing interest in the asset, potentially leading to a pullback and a subsequent decline in DEEP’s valuation.
Further reinforcing the bearish stance were more liquidations of long positions compared to shorts, highlighting a prevalent short-term pessimism surrounding DEEP.
If the current bearish trend persists, DEEP may regress towards $0.05 (50% Fib level), especially if it breaches the $0.08 mark.
Conversely, a resurgence in trading activity could propel DEEP towards $0.11, establishing $0.05 and $0.11 as pivotal levels to monitor in the immediate future.