Why is Flare (FLR) Price Surging?

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?

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.

Explosion in Meme Coin Market; How to find potential successors to $WIF, $PEPE, and $BONK?🤫

The key? Getting in early, especially during the ICO phase. Check out NuggetRush today! This new memecoin combines play-to-earn gaming with authentic gold mining ventures. Seize the opportunity with ongoing presale prices! Plus, prepare for $NUGX’s upcoming launch on major exchanges.

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.

You may also be interested in:

Check NuggetRush ($NUGX)

Sponsored: Invest Responsibly, Do Your Own Research.
Being in its ICO stage, NuggetRush offers a prime opportunity for early investors to get in at potentially lower prices
A unique play-to-earn gaming platform in the memecoin market
The platform combines artisanal and gold mining with cryptocurrencies in an unusual gaming context, offering a distinctive and immersive experience
Fosters a strong community by encouraging physical meetups among members
NFT Integration with Prominent Characters
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency

CaptainAltcoin
Logo