Maple Finance (SYRUP) joined assets hit by widespread selling over the past 24 hours.
The token reached $0.20 early Thursday before retreating alongside the broader crypto market. It last traded around this level on May 26.
However, Maple Finance’s on-chain performance remained positive, creating a divergence between protocol activity and SYRUP price.
Why did Maple’s TVL increase?
The capital deposited at Maple Finance continued to grow despite the decline of the token.
The protocol’s total value locked (TVL) increased by approximately $173 million in 48 hours, according to DeFiLlama.
However, the increase in TVL does not necessarily represent an equivalent amount of new capital. Changes in the prices of the underlying assets can also affect it.
Despite this, the increase suggests that Maple maintained demand while SYRUP faced sell-offs across the market.
DeFiLlama also recorded around $153,000 in holder revenue in July. This metric tracks the value distributed to token holders.
These distributions could support holding demand, although they do not guarantee better price performance.
Why are SYRUP traders retreating?
The decline in SYRUP appears to follow broader market weakness rather than a deterioration of the entire protocol.
Data from CoinGlass showed that Open Interest fell by around 7% over the past day.
It fell from $24.15 million to $22.44 million, removing $1.71 million from outstanding derivatives positions.
The decline in open interest suggests that traders reduced their exposure as volatility increased. However, it did not reveal whether the long or short positions were closed voluntarily.
Meanwhile, approximately $27,390 in SIROP positions were liquidated during the period.
The relatively low liquidation figure suggests that forced closures explain little of the broader decline in Open Interest.
Additionally, the Long/Short ratio fell to 0.74. The reading indicates that short positioning prevails over long positioning within the measured cohort of the chart.
Can Maple’s growth support SYRUP?
The broader crypto market also contracted sharply as investors reduced risks.
The market capitalization of cryptocurrencies excluding stablecoins decreased by approximately $90.71 billion after July 15.
However, market capitalization losses do not represent an equal amount of capital withdrawn. Prices may fall with much lower net sales flows.
SIROP could regain demand if market sentiment improves and Maple Finance maintains its protocol’s growth.
Final summary
- Maple Finance’s TVL increased by $173 million despite the drop in SYRUP price.
- SIRUP Open Interest fell 7% as derivatives traders reduced their exposure.
