You've spotted a pattern, right? 💻🤔 It's true that the launch of perpetual contracts on #Binance often coincides with price surges for the underlying assets. But before we move onto some insights, shall we know what Perpetual Contracts really are?

" Perpetuals are futures contracts with no expiry date, allowing investors to speculate on the price of an underlying asset while bypassing the physical settlement of goods involved in standard futures contracts. They also offer greater leverage than standard contracts. " - CoinDesk

Now think about recent price surge cases, $SYS , $VOXEL and #BRETT . All of these got pumped once Binance made announcements to launch USDⓈ-Margined Perpetual Contract for these tokens. But you guys know what are the reasons? 😎 Let's break down why this might be:

(1) Increased Liquidity and Trading Activity 🔥

  • More Traders: Perpetual contracts attract a wider range of traders, including those who might not have otherwise invested in the spot market.

  • Higher Volume: Increased trading activity can lead to higher liquidity, making it easier to buy and sell the underlying asset. 📈

SYS's trading volume jumped 200%+

(2) Speculative Interest and FOMO 😅

  • Leverage: The ability to trade with leverage can amplify both gains and losses, attracting speculative traders.  

  • FOMO: As the price starts to rise, FOMO can drive even more buying pressure.

Traders can trade BRETT Perpetual Contract With up to 50x Leverage

(3) Enhanced Price Discovery

  • Efficient Pricing: Believe it or not!! Perpetual contracts can help ensure that the price of the underlying asset is efficiently priced based on market demand and supply.

While these factors can contribute to price surges, it's important to note that other variables also play a role. The overall market sentiment, project fundamentals, and regulatory developments can all influence the price of a token.

DYOR! 💻💪😎 #CryptoMarketMoves #VOXEL #SYS