Meta's NFT Outreach Powers 38% Rally in FLOW Token
The dollar value of open positions in Binance-listed FLOW futures has increased by 345%, validating the price rally.
Aug 5, 2022 at 5:45 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/JH6J43KFA5ABJDR2PCHZGXXLXE.jpg)
Meta will leverage the Flow blockchain as part of its NFT initative. (Tumisu/Pixabay, modified by CoinDesk)
Omkar Godbole was a senior reporter on CoinDesk's Markets team.
FLOW, the token of the Flow blockchain, surged over 35% in the wake of Meta Platform's (META) decision to leverage the blockchain to expand its non-fungible tokens (NFT) initiative.
- CoinDesk data shows FLOW rose 38% to $2.62 in the past 24 hours. Prices hit a high of $2.84 at point, the highest since May 31.
- The token ran into buying pressure after Meta announced the international expansion of its recently piloted digital collectibles feature on its photo and video-sharing platform Instagram. Meta declared support for NFTs created on the Flow blockchain. NFTs are digital tokens that represent ownership of physical or virtual assets.
- The social media giant also announced support for Coinbase (COIN) wallet and Dapper wallet as third-party wallets compatible for use as part of its expansion plan.
- FLOW's price rally is backed by a triple-digit jump in futures open interest across major exchanges, including Binance, according to data tracked by Coinglass. Open interest refers to the number of contracts traded but not squared off with an offsetting position.
Chart from Coinglass showing a big jump in open interest in FLOW futures (Coinglass) (coinglass)
- An increase in open interest means more money is being deployed in the FLOW market and validates the price rally.
- FLOW has topped its 100-day simple moving average (SMA), leaving both bitcoin (BTC) and ether (ETH) behind, which continue to trade below the key SMA. However, the bigger downtrend is still intact as seen in the chart below.
The token has cleared the 100-day SMA hurdle, but a broader downtrend is still intact. (TradingView) (TradingView)
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Omkar Godbole was a senior reporter on CoinDesk's Markets team.
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Omkar Godbole was a senior reporter on CoinDesk's Markets team.
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