@michellgracie
Token demand splits between intrinsic and speculative drivers. Intrinsic demand arises from protocol fees, staking obligations, or governance participation. Speculative demand stems from trading volume and narrative cycles. Analysts can model relative weightings by comparing fee-derived usage volume to total exchange turnover. A higher speculative ratio indicates volatility and weak fundamentals, while intrinsic-heavy demand supports stability. This decomposition helps predict resilience during downturns: tokens with strong intrinsic demand tend to retain value, while speculative-heavy assets face sharper drawdowns when hype fades.
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