Metis crypto price surge continues as DeFi TVL jumps

Metis ($METIS) token price has been one of the best-performing cryptocurrencies this week. It rallied by over 50% on Tuesday and reached a high of $83, which was much higher than the year-to-date low of less than $8. It has also risen in the past two straight weeks, giving it a market cap of over $326 million.

Why is METIS token rising?

Metis is a blockchain project whose co-founder is Natalia Ameline, the mother to Vitalik Buterin, the co-creator of Ethereum. The project is a roll-up platform that is built on top of Optimism’s platform, which explains why Optimism has attracted more unique addresses.

Its goal is to have developers build quality applications in key industries like DeFi, gaming, NFT, and bridges. Some of the most notable players in the ecosystem are AAVE, QiDao, Stargate, and Hera Finance, among others.

There are two main reasons why Metis price has surged recently. First, the developers launched the Metis Ecosystem Development Fund (Metis EDF), which will provide $100 million to developers in its ecosystem.

These funds will be in the form of 4.6 million METIS tokens. They will move to sequencer mining, retroactive funding, and deployment of new projects to boost the ecosystem.

As part of this funding, the developers hope that the network will decentralize its sequencer early next year. The $100 million funding is on top of the $5 million incentive program by Aave.

Second, Metis price is rising because of the growing inflows into the ecosystem. Data in its website shows that the network has handled over 9.9 million transactions while the number of blocks has just crossed the 10 million mark.

There are over 479k wallet addresses in the ecosystem while the total value locked (TVL) has jumped to over $570 million.

Metis price forecast

The daily chart shows that the $METIS token price has been in a strong uptrend in the past few months. This trend accelerated after the launch of the EDF program. Along the way, METIS has remained comfortably above the 50-day and 25-day Exponential Moving Averages (EMA).

It has also become highly overbought, with the Relative Strength Index (RSI) and the Stochastic Oscillator have surged. Therefore, I suspect that the token will pull back in the coming days as some traders start to take profits. If this happens, the token could retest the support at $60. In the medium term, however, the coin could resume the uptrend as traders continue pumping.

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