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.
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