Airdrops can spark initial interest, but their real value depends on the project’s future potential. If the project has strong fundamentals, a good team, and utility, the airdropped tokens may hold value; otherwise, they might drop after initial hype.
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Decentralized exchanges (DEXs) allow users to trade cryptocurrencies without relying on a central authority, enhancing the overall decentralization of the ecosystem. While they often provide greater privacy and control over funds, DEXs can face challenges with liquidity compared to centralized exchanges. Lower liquidity can lead to slippage, where users must accept worse prices due to insufficient order book depth. However, DEXs contribute to price discovery by offering an additional trading venue that reflects the true market value of assets. The rise of automated market makers (AMMs) on DEXs has helped improve liquidity and price efficiency, making them more competitive.
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Market sentiment is a powerful force in crypto, where news events and social media trends can rapidly swing prices. Positive news, such as mainstream adoption or regulatory clarity, often triggers buying sprees, driving prices up. Negative news, like security breaches or government crackdowns, can result in swift sell-offs. Social media amplifies these effects, with influencers and communities creating widespread momentum. Since crypto markets are driven heavily by retail investors, sentiment shifts can lead to significant volatility, making it essential to monitor sentiment alongside technical factors.
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