OKB Price Stable at $120.25 Amid X Layer's Deposit Decline

OKB, the native token of the X Layer Ethereum scaling chain, is trading at $120.25, down 0.62 percent over the week. The price has been relatively stable, with a narrow range of $2.60 between the high and low. This stability is not necessarily a sign of strength, as it indicates a thin order book, making it easier for a large order to move the market.

X Layer, which was established by the OKX exchange, has seen a decline in deposits, from $186.9 million on September 28 to $168.3 million. However, this decline is a pullback after a rapid increase, not a collapse. Over a month, the chain has gained 47 percent, and over half a year, its capital has multiplied sevenfold.

The most striking figure is the concentration of deposits in a single lending market, Aave V3, which holds 68.2 percent of all deposits on X Layer. This concentration makes the market more vulnerable to changes in the lending market's terms or capital outflows.

OKB's value is closely tied to the activity on X Layer, as it is used as a gas token and a mandatory stake for trading venues. The fixed supply of 21 million OKB no longer changes, making demand the driving force behind the token's price.