The crypto market may be sluggish, but one Bitcoin-focused DeFi project is booming. Threshold Network’s native token, T, has exploded in value, jumping over 55% this week.
A Token’s Big Week
T is currently trading at $0.0223, a significant increase from $0.0143 just seven days ago. That’s not all – it’s also seen a nearly 48% jump in the last 24 hours alone! This impressive performance puts it in the top 236 crypto assets by market cap.
The Reason Behind the Rise
This sudden surge is linked to Threshold Network’s announcement of a major restructuring. The plan is to revamp its decentralized autonomous organization (DAO) to slash yearly operating costs by roughly $1.1 million. Combined with an expected $8.5 million in savings from ending tBTC staking rewards, the project anticipates significant profits.
This cost-cutting also allows the DAO to stop selling its T tokens. Instead, it will reinvest in them, using treasury funds to buy back T tokens. The first buyback already happened, with around 30 million T tokens purchased for 5.8 tBTC.
A Positive Feedback Loop?
Threshold believes this strategy will create a positive feedback loop. Increased Total Value Locked (TVL) and bridge activity should boost T’s value, attracting more users and further expanding the ecosystem. The tight link between T and tBTC is key to this growth strategy.
Disclaimer: This information is for general knowledge only and does not constitute financial advice. Always do your own research before investing in cryptocurrencies.
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