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$REEF, Reef Finance’s native crypto token, has been on a rollercoaster lately, surging by around 60% in the last week alone.
As of September 4, 2024, the token is trading at approximately $0.00108, with a market cap of around $26.6 million and a 24-hour trading volume surpassing $47 million.
As we said, it’s a rollercoaster — REEF’s one-month performance shows a more modest increase of 1.31%.
Looking at the longer-term trend, the token is still down 10.97% over the past year, according to data from CoinMarketCap.
Notably, the trading activity for REEF has been robust, with a volume-to-market cap ratio of 182.25%, suggesting a high level of liquidity and interest in the token.
So what’s causing the REEF ride? Let’s find out.
What is Reef Finance?
Reef Finance (REEF) is a blockchain-based decentralized finance (DeFi) platform built on Polkadot. It provides DeFi services and products such as trading, lending, and staking.
In other words, Reef operates as a cross-chain trading platform, enabling different blockchains to exchange assets, communicate, and share data. This also allows users to access a wide range of financial services across multiple blockchains without the need for technical expertise.
$REEF’s 1M chart on CoinMarketCap — what caused the drop and rise? Let’s find out.
Reef Finance’s native token is REEF, which helps protect the protocol through governance, meaning it is key to on-chain decision-making on the platform.
It also serves as a staking token, enabling users to earn rewards by locking up their tokens, and it is also used to pay transaction fees on the platform.
Beyond these core functions, REEF is integral to liquidity provision and yield farming within the Reef ecosystem. REEF holders can provide liquidity on decentralized exchanges as a way to earn additional tokens.
As Reef is built on Polkadot, REEF also benefits from cross-chain interoperability.
The entire circulating supply of REEF, which stands at 22.82 billion tokens, is currently in circulation. The token’s fully diluted market cap is also approximately $26.6 million, aligning with its circulating market cap, as there is no maximum supply limit currently defined.
$REEF Surges as Post Binance Delisting Dust Settles
Last month, Binance announced the delisting of several crypto tokens from its platform. The decision, which took effect on August 26, impacted six tokens across multiple trading pairs, with REEF/TRY and REEF/USDT being among the affected pairs.
$REEF & $CVP
Both got delisted on #Binance spot
and today REEF pumped 100% reached 25M Mcap while CVP trading around 1M mcap and has an active team pic.twitter.com/1aELtGAcez— Izel (@Izelonsol) September 3, 2024
However, REEFUSDT Perpetual Contracts were not affected by the decision and remain active. REEFUSDT Perpetual Contracts are a type of derivative financial instrument that allows traders to speculate on the price of the REEF token against the USDT stablecoin without actually owning the underlying assets.
Nevertheless, REEF took a nosedive following the Binance delisting news, dropping by over 20%. In response to the news, the Reef team claimed it has “always tried to build a unique ecosystem of products and services that are easy to use.”
The team also mentioned their recent launches, including the introduction of ReefSwap and the Reef Chain Wallet on Android. ReefSwap itself is a decentralized exchange (DEX) that harnesses the power of the Reef Chain to allow users a fast and secure trading experience.
The Bottom Line
It has been a bumpy ride for REEF, but the token has regained the losses that happened during Binance’s delistings of some pairs, rising 60% over seven days.
Reef Finance’s cross-chain compatibility and ease of use can make the world of DEXs less complicated for crypto users who want to advance their knowledge and options, and it looks to be a niche that it will continue to carve.
