DeepBook Token Skyrockets 261% After Airdrop, Faces Dilution Risk

The DeepBook token was one of the best-performing cryptocurrencies on Oct. 15 after its much-awaited airdrop.

The DeepBook (DEEP) token soared on Oct. 15 following its much-awaited airdrop. The token surged to a high of $0.0380, up by over 261% from its lowest level on Monday. Its market cap rose to over $85 million, while its fully diluted valuation soared to $339 million.

Developed by former Meta Platforms engineers, DeepBook has become one of the biggest players in the Sui (SUI) ecosystem. DeepBook offers a platform that provides higher liquidity, high throughput, low latency, and transparent trading.

Data shows that DeepBook has become one of the biggest players in the Sui Blockchain. According to DeFi Llama, the network handled over $65 million in volume in the last seven days. This makes it the third-biggest decentralized exchange network after Cetus and Turbos.

The platform also announced on Oct. 10 that it will be distributing the DEEP tokens to 100,000 early supporters, who received the DBClaimNFT a few months ago. The token will be used to pay for trading fees on the DeepBook platform, provide liquidity, and facilitate governance of the network.

Moreover, DeepBook has a maximum supply of 10 billion DEEP tokens and an initial circulating supply of 2.5 billion. However, long-term holders can expect more dilution over the next seven years as the remaining tokens are released to the market.

Token unlocks are usually dilutive because they introduce more coins into the market, reducing the value of existing tokens. For instance, the Wormhole (W) token initially soared to $1.8632 after its airdrop and has since dropped by over 83%.

The ZkSync (ZK) token initially rose to $0.2942 in June and has dropped by over 54% to $0.1337. Similarly, Hamster Kombat rose to $0.0132 and then plunged to $0.0040.

However, the crypto industry has improved, with Bitcoin (BTC) rising to $66,000 and the crypto fear and greed index hitting the greed level of 60. DeepBook’s token could continue rising if this crypto recovery continues.