The broader crypto market is in decline and the tokenization trend is also suffering. For example, Centrifuge (CFG), leader in this sector, lost 14% of its cap in one day.
Token volume for RWA issuers plunges
For Centrifuge, the total token trading volume decreased by 7.5% over the last 30 days, to approximately $685 million. That day, just $15 million worth of CFG was traded, more than four times less than its record volume of $64 million in May.
Additionally, the token trading volume of all RWA issuers increased from $1.406 billion at this month’s low of $198 million. The industry’s peak token volume was around $6 billion. However, that figure has edged back up to around $424 million.
As such, this figure indicates broader market weakness in the RWA sector.
Also on Centrifuge, most metrics were down double digits. For example, the market capitalization of assets has decreased by 15% to around $1.30 billion, even as the number of holders continues to increase.
Additionally, daily shippers of assets on Cenrifuge decreased 42% to 4. But they remain up 38% this month. However, the numbers are not impressive, considering Centrifuge’s position among RWA issuers.
The transfer volume of assets deployed on Centrifuge also decreased by 43% over the last 30 days. It reached $1.20 billion, with JTRSY leading the decline at around $870 million.
Where are CFG bulls likely to return?
On the charts, Centrifuge lost the tilted support level and confirmed the trendline breakout with a retest. Since then, CFG has fallen more than 32% and continues to fall.
Since CFG price turned the Supertrend indicator bearish on May 22, bears have dominated even small upside pumps. Its price is well below the indicator, indicating bearish dominance over buyers.
As the altcoin continues to fall below key demand levels, the RSI plunges alongside it. At press time, the RSI was oversold at 11:45 p.m. but showing signs of reversal.
A confirmed retest of the distribution, after falling below the $0.20 level, would indicate further decline.
A confirmation leaves the $0.12-$0.14 area as the last viable demand zone where bulls can return. This is the area behind the rally that pushed CFG to a high of $0.35.
If market participants fail to respect the latest demand zone, the introductory price could drop to $0.0997. For now, if CFG price rises and stays above $0.20, the downtrend could stop.
Final Summary
- Centrifuge drops 14% in one day as monthly token volume from RWA issuers plunges to $198 million from $1.406 billion.
- CFG price falls below key demand levels as momentum indicators confirm sellers’ strength.
