Centrifuge [CFG] declined more than 14% in the past 24 hours at press time, extending the double-digit decline in market cap over the past week. The daily trading volume increased, supporting the selling pressure experienced across multiple altcoins.
However, the sharper decline in CFG points to a coin-specific weakness with its real-world asset (RWA) niche.
Centrifuge’s RWA sees negative sentiment
As per data from Token Terminal, Centrifuge’s RWA activity declined on multiple fronts.
For instance, the Monthly Asset Transfer Volume on the chain fell by 10%. This week alone, the metric has decreased from a peak of $11.67 million to $281K, indicating very low usage of the ecosystem in the RWA sector.
Additionally, the Monthly Asset Transfer Count lost more than 58% of its share. Since the start of August, this count has plummeted from 6.7K to 2.2K, representing a 67% loss.
Apart from its RWA niche’s underperformance, CFG faced a broader, weaker altcoin market. To be specific, the Centrifuge ecosystem saw net USD outflows of more than $2.25 million.
Moreover, the Total Value Locked (TVL) was flat at around $1.709 billion after a sharp drop from its highs attained when the RWA narrative was thriving. The TVL of CFG in April was above the $2 billion mark.
Furthermore, the activity on the chain was low, evident from the fees generated. As per DefiLlama, the ecosystem generated about $200.9K in the past 24 hours as of writing.
Will CFG price crash lower?
Even the market structure of CFG was bearish since mid-July.
The altcoin was falling inside a wedge pattern and broke below the lower trendline support. Over the past 24 hours, the CFG price has fallen from $0.1672 to $0.1379 as of writing.
Momentum indicators reinforced the bearish control with the reading of Bull Bear Power (BBP) bars at -0.0243. Moreover, Chaikin Money Flow (CMF) crashed to -0.22, indicating capital flight.
Looking at the market structure and overall RWA sentiment, CFG may continue dipping. It could even lose its all-time low (ATL) at $0.06712.
However, the altcoin is closer to $0.1257, which is the demand zone that pushed it to a peak value of $0.3497. This level could be the start of a recovery if bulls return.
Final Summary
- Centrifuge fell by more than 14% in the past 24 hours as multiple fronts affected its RWA niche.
- CFG price has been falling inside a wedge pattern, with indicators suggesting it could be just the beginning.
