Flare, an EVM-compatible smart contract platform focused on bringing off-chain data onto its blockchain, has seen its native token FLR spike over 20% amid positive ecosystem developments.
FLR rose from a 24 hour low of $0.03903 to a high of $0.04794. At press time, the token is trading at $0.04697. The abrupt move has propelled Flare into the top daily gainers on CoinMarketCap. But what catalyzed this rally, and can it continue?
What you'll learn 👉
Flare Backers Voluntarily Extend Vesting and Limit Selling
According to the Flare team, influential early backers have agreed to voluntarily extend their remaining token vesting schedules as a showing of good faith and commitment to the network’s long term growth.
These stakeholders, which include top crypto VCs like Kenetic and Aves Lair, will now have their token allocations unlocked over an additional two years rather than flooding the market in 2024 as originally structured.
Additionally, the supporters committed to restricting secondary sales to just 0.5% of daily volume – reducing potential sell-side pressure radically below levels typically seen after team/VC coin unlocks conclude.
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Show more +$35 Million Ecosystem Reinvestment Initiative Announced
As part of the arrangement, participating backers also pledged to reinvest no less than 50% of their realized token profits back into emerging Flare ecosystem protocols over the next two years. At current valuations, this reinvestment could total up to $35 million worth of developer/builder incentives.
The goals are promoting further decentralization, supporting builders, and kickstarting nascent DeFi activity by seeding initial TVL to boost sustainable growth.
The sum impact of all the above changes yielded an immediate price upside thanks to the drastically reduced potential selling of FLR tokens relative to expectations.
Examining technicals, FLR had already begun consolidating right at a key support level, indicating accumulation was underway. The swift breakout on high volume confirmed this strong base, which can support further upside follow through.
Daily RSI Reaching Overbought Levels
The power of the move also shows up clearly on momentum indicators like the daily Relative Strength Index (RSI), which has now surged up to 81.89.
Readings above 70 generally signal an overbought security that has risen too far too fast, so cooling off can happen before continuation plays out. Still, dips should find eager buyers, given the newly reinforced fundamentals.
Overall, Flare’s unique approach to decentralized data oracles unlocks functionality rivaling leading chains, so with commitment showing from core supporters, FLR may have reignited its long-term rally.
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