3 Key Factors Behind the Surge in IDEX Price and Volume

IDEX (IDEX), a prominent decentralized exchange (DEX) platform, surged to its highest level since March this year. The IDEX token climbed to $0.1150, marking a gain of over 335% from its lowest level this year, pushing its market cap to over $70 million. This rally occurred in a high-volume environment, with 24-hour trading volume increasing by over 4,420% to reach $318 million. Below are the three main reasons behind this significant surge.

Total Value Locked (TVL) Hits a Record High

One of the main reasons behind the surge in IDEX’s price and trading volume is the Total Value Locked (TVL) on IDEX hitting a record high of $70 million. This is the highest TVL recorded on the platform to date. The majority of this TVL comes from IDEX’s Ethereum version, while the rest is spread across IDEX Chain and Polygon. According to data from DeFi Llama, weekly trading volume on the platform’s IDEX V4 (perpetual futures platform) jumped to $84.2 million, the highest volume on record. The all-time trading volume has now surpassed $388 million. This increase in TVL reflects strong growth in both the platform’s usage and the confidence that users have in IDEX.

Upcoming Launch of Buy & Lock

Another important factor is the upcoming launch of Buy & Lock, which is expected later this week. Buy & Lock is a liquidity initiative aimed at strengthening IDEX’s on-chain presence. As part of the initiative, 100% of all fees generated on the platform will be reinvested and locked. 50% of these fees will be used to buy IDEX tokens, reducing the circulating supply, while the remaining 50% will be paired with the purchased IDEX tokens and added to a Uniswap liquidity pool. The developers hope this initiative will create more value and liquidity for the network, further boosting the IDEX token’s price.

This initiative follows the launch of IDEX’s points program, which allows users to trade, stack points, and claim rewards every Friday. Users can reinvest these coins and earn as IDEX’s price rises, enhancing the token’s utility.

Strong Trading Volume and Growing Interest in Perpetual Futures

The growing trading volume on IDEX is also a major contributor to the price surge, particularly within the perpetual futures market. According to DeFi Llama, weekly trading volume on IDEX V4 has risen to $84.2 million, the highest recorded. The 24-hour trading volume reached $318 million, a staggering increase of 4,420%. This increase in trading volume indicates growing interest in decentralized financial products, including perpetual futures, and reinforces the rising demand for the IDEX platform.

IDEX Faces Resistance

The daily chart shows that IDEX price surged to a high of $0.1148 on December 9 before retreating to $0.086 as Bitcoin and most other altcoins experienced declines. However, IDEX remains above the key resistance level of $0.060, its highest level on August 28. The coin has moved above all major moving averages, indicating that bulls are in control.

IDEX is currently slightly below the 61.8% Fibonacci Retracement level, suggesting a potential rebound. The coin could bounce back and possibly retest its high from this week at $0.1148. A break above that level would signal more gains, potentially pushing the price toward the March high of $0.1253.