Over the past 24 hours, altcoin Worldcoin (WLD) has experienced a significant net inflow of approximately $16.81 million, according to Nansen data. The current market situation positions WLD at $3.9, indicating an impressive increase of 54.95 percent in this short time frame. Here are the details…
Hopeful rise for altcoin
According to Nansen data, Worldcoin received a smart money inflow of $27 million. So, what does this indicate? Earlier today, DeFi researcher @DefiSquared took to social media to share his views on the latest developments surrounding Worldcoin. According to the researcher, the update to Worldcoin’s market maker agreement is among the most bullish ever seen.
The previous market maker agreement gave market makers the ability to control Worldcoin’s price dynamics, allowing significant price pressure without risk. However, with the latest update, the old contract has officially ended, signaling a potential shift in WLD’s price trajectory. In a subsequent analysis on December 17, DeFi researcher @DefiSquared revisited the impact of the updated market maker agreement on Worldcoin. Described by the researcher as one of the best seen, the revised terms bring a paradigm shift in Worldcoin’s market dynamics.
Market makers are operating
DeFiSquared emphasized the importance of this update and stated that despite the update news circulating a few days ago, market makers were previously operating under the old contract. The termination of the old contract means that WLD’s price can rise for the first time without restrictions imposed by market makers.
Under the old protocol, market makers were lent 75 million WLD with a guaranteed repurchase option at the end of the contract, allowing them to sell tokens at prices above $2 without risk. However, the new agreement eliminates the repurchase option, reduces the loan size to 10 million WLD, and removes the remaining unpurchased WLD from circulation.
What will be the market value of WLD?
As a result of these changes, Worldcoin’s new market cap could drop to just $190 million, which is a rather low figure considering its importance in the current AI narrative. WLD’s reduced circulation could have implications for its price in the short term and present a challenging scenario for short sellers. The order book heat map confirms a significant decrease in WLD’s liquidity today, in line with adjustments to market maker contract terms. Despite this, Worldcoin witnessed a 49% increase in the last 24 hours, revealing the potential impact of these market dynamics on price movements.
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