Derive (DRV) surged over 40% in 24 hours, reaching a new all-time high of $0.28 before retracing to $0.24, while Bitcoin and Ethereum saw declines. Daily trading volume jumped more than 463% to surpass $25 million. The altcoin had recovered from a 52% correction after an initial rally fueled by an Upbit listing. A V3 upgrade plan, which moves custody to Ethereum mainnet and splits risk books for faster asset listings, along with ongoing buybacks and staking, are driving investor enthusiasm. Over 67% of the supply is staked, and 35% of protocol fees fund token buybacks.
Derive (DRV) recorded a hike of more than 40% in the last 24 hours as Bitcoin and Ethereum saw red. Its daily trading volume surged by more than 463%, surpassing $25 million at press time.
The altcoin had been recovering after a 52% correction from its previous all-time high of $0.19. An Upbit listing drove its initial rally, but some investors were skeptical about a continuation, and DRV entered a bear phase lasting over two months until the recent hike.
Market bulls pushed the altcoin to the zone around its previous all-time high, but they still faced a test at the same supply zone between $0.19 and $0.20. This was the fourth time DRV hit this zone, as it was a hurdle even in the previous rally.
This rally could be an exit pump as DRV has been surging from $0.09 to $0.20 since 19th August. However, indicators on the 4-hour timeframe suggested a bullish scenario, with DRV’s price trading above the 100 and 200 EMAs.
The Bull Bear Power (BBP) flipped green over the past three sessions. At press time, the altcoin was valued at $0.24 after hitting a new all-time high of $0.28 a few hours ago.
If DRV loses the $0.13 zone as support, it may revert to its correction phase. In such a scenario, a bullish reaction may be anticipated at $0.11 and $0.09.
Network upgrades, buybacks, and staking have been driving DRV. The 20% rally came from a spike in trading sentiment after Derive posted the V3 plan on its project forum, and the OP Stack chain is now being wound down.
The V3 upgrade will move custody to Ethereum mainnet and split risk books so that real-world assets (RWAs) and more altcoins could list faster. It keeps feeding DRV buybacks with protocol fees, with 35% of fees used to buy back the token.
The 84th weekly buyback event purchased 199.76K DRV at an average price of $0.14, taking the total to 27.645 million tokens, as stated. This activity has kept the circulating supply of DRV controlled, and staking has helped too, with over 67.63% of the supply in the staked address.
DRV’s continuation will hinge on these fundamentals and the technical outlook.
