XRP has been struggling to make any significant upward movement, with its price failing to breach a crucial resistance level. Despite attempts at recovery, the altcoin remains stuck, with no sustainable progress beyond the $2.56 barrier. 

The drastic drop in circulation is worsening the situation, signaling a lack of investor activity and growing market concern.

XRP Loses Interest

The circulation of XRP has seen a sharp decline, with its velocity falling to a five-year low. This metric, which tracks the rate at which XRP is transacted, has not been this low since January 2020. A drop in circulation often reflects investor hesitation, as less movement indicates a lack of confidence in the market. 

This low velocity is a negative sign for XRP, suggesting that holders are not actively moving their assets. It points to a sense of bearishness in the market, as investors are reluctant to trade or engage with the asset. The absence of significant transaction activity further indicates that XRP may struggle to break out of its current rut without a shift in sentiment.

XRP’s macro momentum is not showing signs of strength, with technical indicators reflecting the overall market sentiment. The Chaikin Money Flow (CMF) for XRP has dropped to a four-month low, remaining below the zero line and signaling bearishness. This suggests that investors are unwilling to invest more money in XRP due to the current market conditions.

The CMF being in the negative zone indicates that buying pressure is lacking and that holders are not injecting capital into the asset. This weak investor confidence could continue to hinder XRP’s potential for a rebound, making it more challenging to regain upward momentum in the near future.

Cam XRP Price Bounce Back?

XRP’s price is currently at $2.36, and it is unable to break through the critical $2.56 resistance level. This resistance has been a significant barrier for the altcoin in the past, and it continues to act as a strong point of contention. Until XRP can successfully breach this level, the altcoin is unlikely to sustain any meaningful rally.

Given the current market conditions and declining circulation, XRP is not expected to breach the $2.56 resistance anytime soon. Instead, it could face a drop toward $2.27 or potentially lower to $2.14. This could extend the consolidation phase, erasing some of the recent gains made by the altcoin.

The only way to invalidate this bearish outlook is for XRP to break through and flip the $2.56 resistance into support. If successful, XRP could rise towards $3.00, recovering some of the losses from earlier in the year. However, this would require a significant shift in investor sentiment and broader market conditions to support such a move.

Binance Wallet and PancakeSwap have joined forces to host the exclusive Token Generation Event (TGE) for KiloEx (KILO).

This development follows Binance’s shift to secondary listings, facilitating TGEs via Binance Wallet before secondary exchange listings.

Binance Wallet and PancakeSwap Host KiloEx TGE

Binance revealed that KILO TGE will occur on Thursday, March 27, between 10:00 a.m. and 12:00 p.m. UTC on the BNB Smart Chain. This carefully structured public sale will introduce the KILO token to the market.

“Binance Wallet is excited to host the exclusive Token Generation Event on BNB Smart Chain for KiloEx, the next generation user-friendly perpetual DEX, with PancakeSwap,” Binance wrote.

KiloEx, a next-generation decentralized exchange (DEX) specializing in perpetual contracts, aims to enhance accessibility and liquidity in the crypto space. Through this collaboration, Binance Wallet will facilitate the exclusive launch of KILO tokens. Meanwhile, PancakeSwap DEX will provide additional trading support immediately after the event.

This partnership is designed to streamline token launches and offer a more user-friendly experience for investors looking to participate in early-stage projects. Data on GeckoTerminal shows that the KILO price is up by almost 2,300% on this news.

With a total raise of $750,000 in BNB and an initial allocation of 50 million tokens—representing 5% of the total supply—investors can participate in the event with a cap of 3 BNB per Binance Wallet user.

Unlike traditional fundraising models, this event will allocate tokens pro rata, ensuring fair distribution among participants. Additionally, there is no vesting period. This means users can immediately trade their KILO tokens on Binance Wallet DEX or PancakeSwap as soon as the event concludes.

KiloEX Shares KILO Tokenomics

Beyond the TGE, KiloEx has unveiled a comprehensive tokenomics model for KILO. Shared on X (Twitter), the platform emphasized community engagement and long-term sustainability.

With a fixed supply of 1 billion tokens, 10% is earmarked for airdrops, while 27% will support the broader ecosystem. The exclusive public sale on Binance Wallet accounts for 5%. Additional allocations are also made for staking rewards, strategic investments, and liquidity provisions.

One of the key highlights is the ability to convert KILO into xKILO. This provision allows holders to stake their tokens and earn a share of 30% of the platform’s revenue. Additionally, KILO holders will play an active role in the protocol’s governance, ensuring a decentralized decision-making process.

“The key utilities of KILO include: Converting to xKILO for staking to earn 30% of the platform revenue. Future on-chain governance participation, enabling holders to help shape the project’s future,” KiloEx stated.

This initiative aligns with Binance’s broader strategy of shifting toward secondary listings, as seen in recent changes to its token launch approach. Instead of exclusively listing new tokens on its centralized exchange, Binance has been leveraging Binance Wallet to facilitate token launches on decentralized platforms.

“Binance has pivoted away from doing huge initial launches with big Day-1 selling pressure while doing more secondary listing shortly after running TGE campaign on Binance Wallet,” a user on X observed.

This move decentralizes the listing process and grants early adopters greater access. It also mitigates some of the challenges associated with centralized exchange listings. The collaboration with PancakeSwap reinforces this trend, positioning Binance Wallet as a pivotal player in the growth of decentralized token generation events.

Upbit and its parent company, Dunamu, secured a notable win after the Seoul Administrative Court temporarily suspended a three-month business restriction imposed by South Korea’s Financial Intelligence Unit (FIU).

New Upbit users can continue depositing and withdrawing crypto assets until at least 30 days after the main lawsuit’s final judgment.

Court Suspends Upbit Business Restriction

Local media reported that the decision came after Dunamu challenged the FIU’s disciplinary action. Specifically, Upbit’s parent company argued that the penalties were excessive.

Based on this, the 5th Administrative Division of the Seoul Administrative Court, led by Judge Soonyeol Kim, ruled in favor of Dunamu, granting an emergency suspension of the business restriction.

“…the effect will be suspended until 30 days from the date of the judgment of the main lawsuit. This is a measure to buy some time for Dunamu,” read the report.

The FIU’s initial penalty was based on allegations that Upbit violated South Korea’s Special Financial Transactions Act. The exchange reportedly allowed transactions with unregistered overseas exchanges without real-name verification.

Authorities discovered these infractions during an anti-money laundering (AML) audit from August to October last year.

“…We deeply sympathize with the purpose of the financial authorities’ recent sanctions, which are aimed at stably establishing the anti-money laundering system and strengthening the legal compliance system through strict discipline on virtual asset operators,” Upbit responded at the time.

Nevertheless, the FIU suspended Upbit’s ability to process deposits and withdrawals for new users for three months. Authorities reprimanded Upbit’s CEO, Lee Seok-woo, leading to the dismissal of the company’s compliance officer.

Dunamu quickly responded by filing a lawsuit to overturn the restriction and requesting a stay of execution. While the suspension was initially set to take effect on March 7, the court granted a temporary delay to review the case.

With the official suspension in place, Upbit can continue operations as usual until the final ruling.

This is not the first time Upbit has faced regulatory challenges. Just two months ago, South Korean authorities temporarily suspended the exchange over 700,000 Know-Your-Customer (KYC) violations.

Upbit was also under investigation for alleged antitrust violations six months earlier, with authorities scrutinizing its market practices.

While this ruling offers Upbit some breathing room, the legal battle is far from over. The final verdict in the main lawsuit will determine whether the FIU’s sanctions were justified or an overreach.

This ruling is pivotal for Upbit, South Korea’s largest crypto exchange. The South Korean government recently ordered Google to block 17 foreign cryptocurrency exchanges that failed to comply with local regulations. With these competitors effectively shut out, Upbit is in a prime position to strengthen its market presence and attract more users.

In a separate development, Upbit announced the launch of Wallace (WAL) trading pairs, citing the Korean won (KRW), Bitcoin (BTC), and USDT stablecoin.

WAL token ties to the Walrus protocol, which focuses on decentralized storage for blockchain data. Walrus, developed by the Sui (SUI) team at Mysten Labs, recently secured $140 million in funding, with its mainnet launch coinciding with Upbit’s announcement on March 27.

South Korea’s crypto market is influential, and Upbit’s listing could boost WAL’s visibility. However, past listings like ORCA and BONK show such gains often fade quickly.