On-chain data by LookOnChain, an analytics platform, shows that Jump Trading, a quant trading firm, has rapidly accumulated several decentralized finances (DeFi) tokens over the last week. Their move came when Bitcoin prices roared above $31,000, sparking demand in altcoins, some of which bounced from June 2023 lows.
Jump Trading Accumulating DeFi Tokens
According to the analytics platform, Jump Trading bought MASK, the native currency of Mask Network, a privacy-focused Layer 2 solution for Ethereum. At the same time, they have been accumulating LDO, the governance token of the Lido DAO, a liquidity staking platform that supports various tokens, including Ethereum and Polygon (MATIC).
Among other coins, the quant trading platform bought considerable amounts of LEVER and PERP, the native tokens of LeverFi, a decentralized margin trading platform, and Perpetual Protocol, a decentralized perpetual contract exchange, respectively.
Their gravitation towards DeFi tokens, based on their accumulation trend, is not yet known. However, what’s evident is that DeFi activity took a hit in 2022 and is yet to recover, even in the first half of 2023.
As of writing on June 26, the total value locked (TVL) by DeFi protocols across all blockchains stands at $44.32 billion, where most high-value protocols by TVL have been deployed from Ethereum. According to DeFiLlama, Ethereum-based DeFi dapps manage $26.12 billion, of which Lido Protocol manages $13.83 billion of assets. Its native token, LDO, is among the assets being scooped by Jump Trading.
Based on trackers, Jump Trading has bought 1.59 million MASK worth $6.15 million; 1.09 million LDO worth $2.11 million; 509 million LEVER worth $686,000; and 1.07 million PERP worth $545,000 at around spot rates. A deeper look at their address reveals that Jump Trading holds over 164 tokens worth over $34 million.
Notably, one of their largest holdings is MASK, at over $5.7 million, and SNX, the native token of Synthetix, at more than $4.1 million. Meanwhile, USDT, the world’s most liquid stablecoin by circulating supply, is the largest holding at over $5.9 billion.
Interest And Confidence?
Jump Trading is a registered broker-dealer and a member of multiple exchanges, such as the CME Group, the New York Stock Exchange, Eurex, and the London Stock Exchange, that entered the cryptocurrency market in September 2021 as Jump Crypto.
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On their platform, they claim they prioritize research before trading, explaining why their team predominantly comprises PhDs and quantitative analysts deploying algorithms to execute their crypto trading strategies.
The accumulation of these tokens by Jump Trading could increase demand and support prices since it signals a show of confidence. Nonetheless, it doesn’t guarantee that prices will rally. As a demonstration, MASK, one of Jump Trading’s biggest holdings, is down 50% from 2023 highs.