Maple Finance, a platform known for its impressive growth and nearing $1 billion in active loans, is facing challenges with its native token, SYRUP. Despite the token’s previous rally of 355% from April lows, it has hit a roadblock with slowing user adoption and diminishing whale interest. While the fundamentals of the protocol remain strong, technical indicators such as a bearish double-top pattern and weakening network activity suggest that SYRUP’s recent momentum may be losing steam.
Currently, the price of Maple (SYRUP) is trading at $0.40, slightly below this month’s peak of $0.4637. On-chain data reveals a significant drop in network growth, with new accounts created daily decreasing from 1,085 to 37. Additionally, daily active addresses have also declined from 285 to 422, indicating a slowdown in growth compared to the surge seen in May.
Whales, or large holders of SYRUP tokens, are also showing reduced interest in the coin. Addresses holding between 10 million and 100 million SYRUP tokens have decreased to 384 million from a high of 395 million. Similarly, holders of 1 million to 10 million tokens now hold 228 million, while those with 100 million to 1 billion tokens have 458 million, down from 803 million in March.
Despite these challenges, Maple Finance is seeing growth in its network, with active loans reaching $998 million and on track to hit $1 billion soon. This marks a significant increase from $220 million at the start of the year, along with reaching $2 billion in assets under management.
The platform’s expansion into Solana (SOL) through Chainlink’s oracle integration is expected to drive further growth. The amount of syrupUSDC in circulation on Solana has already seen a significant increase of 35 million within the first 24 hours.
In terms of technical analysis, the eight-hour chart for SYRUP shows a double-top pattern with a neckline at $0.3184, indicating a bearish reversal pattern. The Relative Strength Index has formed a bearish divergence pattern, suggesting further downside potential with sellers targeting the neckline at $0.3184, 22% below the current level.
Overall, while SYRUP may be facing challenges in the short term, the strong fundamentals of Maple Finance and its growth potential in new markets indicate that the platform is well-positioned for long-term success.