Cap Token Surges 38%, but On-Chain Flows Remain Weak

Cap (CAP), the native token for the blockchain credit-backed platform, has seen significant growth over the past day. The asset's market capitalization surpassed $100 million, and its price rose by 38% in the same period.

The increase can be attributed to a sentiment-driven rally in the market. According to data from CoinMarketCap, the Sentiment indicator, which measures investor outlook on a scale of -10 to 10, has a reading of 4.27, suggesting a bullish market. Additionally, Mindshare, representing discussion among traders about the asset, has grown by over 679% in the past 24 hours.

However, despite this growth, on-chain capital flow remains minimal. The Total Value Locked (TVL) has increased slightly by $10 million to $330 million in the past 48 hours, but this is not a strong indication of a rally that will trend across multiple trading sessions.

The fees and Active Loans generated by the protocol have also been relatively low, with total fees reaching just $11,758 in the past 24 hours. The risk of a decline remains high due to weak on-chain flows, falling Spot Market Netflow, and a negative Funding Rate, which suggests that traders anticipate the asset's price to fall in the near term.