The reason the market cap of this token lost $4 billion in a week

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According to the data, the market capitalization of the Hex blockchain network (HEX) dropped by around $4 billion in the past week alone .

Hex's market capitalization fell to a low of $2.41 billion on May 25 from a peak of $6.62 billion recorded on May 20.

During this time period, the network 's token founded by Richard Heart dropped more than 47% to as low as $0.01474 due to a severe sell-off. Therefore, it entered the list of the top 5 losing coins for two consecutive days on May 24 and 25.

hex

Source: TradingView

However, it looks like the token is saved in the last 24 hours, rising to $0.01 58 while the market cap recovers to $ 2.79 billion.

While HEX suffered a disastrous sell-off, its sister layer 1 network Pulsechain saw the value of key assets (TVL) on the network skyrocket 155% to $425 million in less than a week.

hex

Source: DeFillama

Accordingly, the newly launched network quickly climbed to the 9th largest blockchain position in terms of TVL, surpassing veteran competitors such as Cardano (ADA), Solana (SOL) and Fantom (FTM).

Pulsechain launched on May 14 as a Hard fork of the Ethereum network. The official website states “ they differ in speed, cost, deflation, and network efficiency because they are capable of executing hundreds of transactions per second, far exceeding Ethereum’s 13.”

However, users of Pulsechain have complained about network speeds and high Gas fee on social media platforms.

On May 14, Taproot Wizard Eric Wall shared some screenshots of Pulsechain users complaining about Gas fee. According to the screenshot, one user paid nearly 1 million PLS tokens in Gas fee for a single transaction.

The community also pointed out that “if the PLS value goes up, the Gas fee of the network will be higher than that of Ethereum and other networks” .

Meanwhile, Heart sees nothing wrong with these high fees, saying :

“If someone wants to pay more than you to get into the block, they will come in, but you won't.”

After initial complaints, Pulsechain users expressed joy when Gas fee dropped .

Despite these issues, Pulsechain has maintained momentum in terms of trading volume and social media hype. According to DeFillama data , the dominant protocol on the network is the decentralized exchange PulseX with a larger TVL than SushiSwap.

Furthermore, the network's PLS token was also recently listed on the OKX exchange on May 23. PLS has gained 6% over the past 24 hours to $ 0.00019, according to CoinMarketCap data.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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