The Spark Protocol Token Rebounds as Total Value Locked Nears All-Time High
Investors are showing renewed interest in the Spark Protocol token as it bounces back from recent lows. The token, known as SPK, has risen to $0.045, marking a 25% increase from its lowest point this year. This resurgence has pushed its market capitalization close to $40 million, demonstrating a strong recovery.
One of the key factors driving SPK’s revival is the surge in total value locked (TVL) within the network. Data shows that the TVL has climbed to $6.28 billion, approaching its all-time high of $6.7 billion. This substantial increase in TVL indicates a growing demand for Spark’s yield-bearing products, with the savings TVL surpassing $3 billion and the average savings rate reaching 4.5%.
Furthermore, there is a noticeable uptick in demand for Spark’s lending solution, with the total value locked nearing $3.5 billion. This trend aligns with the growth seen in other lending protocols such as Aave and Maple Finance, highlighting the increasing popularity of decentralized finance platforms.
Despite its recent price volatility following the Ignition airdrop, investors are starting to view SPK as undervalued compared to its peers. For instance, Spark’s fully diluted valuation remains lower than that of Pendle (PENDLE) and JustLend, despite having a higher TVL in some cases.
Looking at the technical analysis of SPK’s price, the hourly chart reveals a bounce back from the recent dip, with the token forming a bullish W pattern. With the neckline set at the 50% retracement level of $0.050, there is potential for a strong bullish breakout in the near future. The initial target is projected to be around $0.051, signaling further upside potential for the Spark Protocol token.
