Key Points:
- The MYX token experienced a massive surge, increasing by 1,400% to reach $18.42 within a week, driven by factors including listings linked to Donald Trump.
- Experts are raising concerns, pointing out potential warning signs that suggest a significant price correction of 70–85% may be imminent.
The cryptocurrency MYX Finance (MYX) has seen its value skyrocket nearly 1,400% in just one week, hitting a peak of $18.42 on Wednesday.
What is MYX Finance?
MYX operates as a decentralized platform for trading perpetual contracts, utilizing a distinctive method known as the Matching Pool Mechanism (MPM).
Instead of relying on conventional order books or Automated Market Makers (AMMs), MYX matches traders via a shared pool. This involves initially taking the opposite side of each trade, followed by pairing long and short positions. The aim is to provide slippage close to zero, akin to centralized exchanges, but within a fully decentralized environment.
The platform supports contracts margined in USDC with leverage up to 50x, employing a dual-oracle system for price accuracy.
Reasons Behind the MYX Token’s Price Surge
Several significant factors appear to be behind the increased demand for MYX. These include an event associated with Donald Trump, substantial activity in derivatives trading, and other contributing elements.
Let’s explore these catalysts in greater detail.
Listing of World Liberty Financial’s (WLFI) Token
On September 5th, MYX Finance announced the listing of the WLFI token, which is connected to former US President Donald J. Trump and his family.
The MYX token began its upward trend the day after this announcement, indicating that adding a high-profile token to its decentralized exchange increased its visibility among traders looking for quick gains.
Binance Alpha Listing Drives Excitement
The surge in MYX’s value was further fueled by its top ranking on Binance Alpha’s list of best-performing airdrops and token generation events (TGEs).
According to Binance Wallet data released on Tuesday, MYX has provided the best returns among recently launched tokens. Early adopters saw their initial allocations increase from around $5.92 per token to over $8,100 in value per user.
Concurrently, open interest in MYX futures contracts rose above $400 million, according to CoinGlass data, highlighting significant growth in derivatives trading.
The combination of increased access through Binance platforms and deeper liquidity within perpetual markets has amplified speculative buying and a fear of missing out (FOMO) among retail investors, resulting in substantial gains for the MYX token.
Aggressive Short Squeeze Extends MYX’s Rally
Continuous liquidations of short positions on a daily basis have further propelled MYX’s rapid price increase.
Data from CoinGlass reveals that between September 6th and September 10th, $89.51 million in short positions were liquidated, compared to $23.45 million in long positions.
As MYX’s price surpassed $10–$12 and rapidly approached $18, traders who had anticipated a price decrease (short sellers) were compelled to repurchase the token to limit their losses.
Due to a limited number of tokens in circulation and a high degree of leverage used by many traders, these repurchases further accelerated the price increase, pushing MYX to unprecedented highs.
Analysts Signal Potential Risks in MYX’s Price Increase
Market observers are expressing skepticism regarding MYX’s recent price surge.
Notably, a significant release of 39 million tokens occurred simultaneously with the price increase, raising concerns that early investors capitalized on retail demand to sell their holdings at inflated prices.
Web3 commentators have identified unusual trading patterns, including daily volumes in perpetual contracts reaching $6–9 billion, suggesting possible coordinated activity by large investors across Binance, Bitget, and PancakeSwap.
These trading activities, combined with the forced liquidation of short positions, have sparked discussions about potential market manipulation.
On X, some users have labeled MYX’s price movement as a “scam pump” or a “crime scene,” drawing parallels to Mantra’s 90% crash earlier in 2025.
Technical indicators also suggest the rally might be unsustainable. MYX’s relative strength index (RSI) has surged to between 89 and 97, indicating that the asset is significantly overbought.
Similar RSI readings in August preceded a 60% decline in MYX’s price, with the token’s 20-day (green) and 50-day (red) exponential moving averages (EMAs) becoming key targets for downward movement.
A comparable downtrend could potentially drive MYX’s price down towards the $2.72-5.10 EMA range in the coming weeks, representing a decrease of 70-85% from current levels.
This article is for informational purposes only and should not be construed as financial advice. Investing in cryptocurrencies involves substantial risk, and readers should conduct thorough research before making any investment decisions.