DRIFT fluctuates 42.6% in 24 hours: Recovery plan and surge in trading volume drive rebound

Volatility Brief

DRIFT (Drift Protocol) experienced significant price volatility in the past 24 hours, with the current price at $0.0362, a 24-hour high of $0.0395, a low of $0.0277, and an amplitude reaching 42.6%. According to platforms such as CoinGecko, the 24-hour price increase is around 25-30%, with trading volume surging significantly (some platforms showing figures in the millions to tens of millions of dollars).

Brief Analysis of Cause for Abnormal Activity

This volatility is primarily driven by the following verifiable factors within the past 24 hours or recently (prioritizing recent events; the April hack is only background):

- Recovery Plan Continues: On May 5, Drift announced a user recovery plan and issued "recovery tokens" (one token per $1 lost), with an initial recovery pool of around $3.8 million USDT. The plan received up to $127.5 million in matched support from Tether and partner funds. The goal is to gradually cover approximately $295 million in losses through protocol revenue. This plan has continued to attract market attention in mid-to-late May, providing recent price support.

- Protocol Trading Volume Hits Record High: Drift's perpetual contracts platform saw daily trading volume exceed $1 billion around the weekend and May 25, making it one of the leading perp DEXs on Solana and directly driving demand and price appreciation for DRIFT tokens.

- Improved On-chain and Market Liquidity: Updates related to the insurance fund and expectations of restarting in Q2 (targeted for May-June) have boosted confidence, compounded by a general recovery in Solana DeFi sentiment.

No reports of new hacks or significant negative on-chain transfers within the past 24 hours; the narrative is mainly positive and recovery-focused.

Market View and Outlook

Community and analyst sentiment remains generally optimistic, believing that the recovery plan and Tether's support provide a floor for long-term value. However, risks are noted: full compensation may take years (depending on future revenue), and early redemptions are distributed proportionally. Some opinions are optimistic about a post-restart TVL rebound and token performance, while others suggest focusing on actual execution and progress in security upgrades.

Overall, short-term price may remain volatile. It is advisable to follow official announcements and on-chain TVL changes. All information is based on public market data and news. The market carries risks; invest cautiously.