The first 10 days of November tuned out quite interesting for most cryptocurrencies including the Drift token. The latter experienced its first major rally during which it surged by 655% in 4 days. This performance has attracted a lot of interest in the token and we are here for it.
What is Drift token?
Drift token is the native coin on a similarly named decentralized exchange (DEX) called Drift Protocol. More importantly, it is based on the Solana blockchain.
The Drift Protocol may not necessarily be the top DEX on the Solana network, but it has been making waves and attracting attention. One of the main reasons for this budding interest in this token could be the surge in key metrics.
Drift token and protocol performance underscore rapid growth
As noted earlier, Drift token has been attracting attention and this is mainly evident in its price action. Its trading data dates as far back as May 2024 but was mostly sideways action up until recently. There was some bullish attempt between August and September but that was shut down.
DRIFT token’s first major breakout occurred in the second week of November. It traded as low as $0.3819 on 4 November but the bulls quickly took over by 8 November. The token soared as high as $2.70 on 9 November, attaining a new all-time high and this was how it pulled off an impressive 655% rally in just 6 days.
The massive price surge could be an indication of whales accumulating Drift token. However, price action was not the only reason why the token and the Drift protocol have been receiving attention.
Growth was also evident in the DEX itself. For instance, its total value locked (TVL) has been growing exponentially in the last 12 months. For context, Drift protocol had $32.1 million in TVL as of 11 November 2023. That figure has since soared to $651.84 million exactly 12 months later.
Aside from TVL, token volume also soared to historic highs recently. The protocol previously registered its highest token volume at just over $80 million on 23 May. On slow days its volume dipped below $10 million.
The recent excitement in the market brought forth a massive spike in Drift token volume allowing it to achieve a new all-time high. It peaked at $2.27 billion on 10 November. This really puts to scale the level of liquidity that flowed into Drift.
Drift tokenomics
Drift had a $415.39 million marektcap at the time of writing, with a circulating supply of 251.32 million tokens. However, that circulating supply is expected to rise in the future because Drift has a total supply of 1 billion tokens.
The currently low circulating supply may be attractive to many investors in the short-term. This is because the recent surge in popularity may pave the way for more liquidity inflows. If that kind of a scenario plays out in the next few months, then Drift token could be headed for interesting times ahead.
But just how far can Drift token go? It was already closing in to the $500 million mark, which means there could be more opportunities ahead. A 1 billion marketcap means the token would be worth Almost $4, assuming that the circulating supply remains constant.
Conclusion
Raydium and Jupiter are among the top Solana DEXes that have crossed above the $1 billion marketcap level. Drift protocol has a good shot at joining them. So far available data indicates that Drift token is experiencing a surge in demand and its protocol has also been growing.
Drift token and protocol fit into the category of projects that may deliver impressive growth in 2025. However, this dos not necessarily guarantee that outcome and this information should not be considered financial advice.
