CANTO Surges 250% After Rebounding, Then Tumbles Down Again

CANTO, the native cryptocurrency of its associated layer-1 blockchain, saw dramatic fluctuations during trading on Thursday, initially surging by 250% before retracting 60% of its value within the next six hours.

Following an enthusiastic launch last year, which propelled its market cap to $238 million alongside a total value locked (TVL) of $204 million, the platform faced significant declines in both TVL and trading interest.

At present, only $4.6 million is locked within the network, a plummet attributed to a network malfunction that drove users away.

Canto’s challenges emerged amid a saturation of new layer-1 and layer-2 blockchain projects, resulting in an abundance of protocols and liquidity in the market.

Despite previous announcements about an impending roadmap update, the project has remained silent on X since September.

The trading activity on Thursday was mainly driven by a low liquidity environment, which led to a temporary price spike before sellers capitalized on underwater positions, sparking a sell-off.