Melon (MLN)remains under pressure; the price of this cryptocurrency fell from $33.79 to $22.54 since August 12, 2022, and the current price stands at $22.73.
Melon (MLN) is the native cryptocurrency of Enzyme FinanceMelon (MLN) is the native cryptocurrency of Enzyme Finance: a decentralized asset management platform built on the Ethereum blockchain that enables you to retain custody of your assets at all times.
Enzyme Finance was built by Melonport, a private company founded in 2016, and in 2019, after delivering the first version of the Enzyme Finance protocol, Melonport dissolved and passed its management to the Melon Council, a decentralized autonomous organization (DAO).
Enzyme Finance aims to decentralize traditional asset management, and by using Enzyme Smart Vaults, users can build, scale and monetize investment strategies that employ the newest innovations in decentralized finance.
Because of fact that Enzyme Finance is built on the Ethereum blockchain, fees for transactions are paid in ETH, and these fees cover the cost of using Ethereum’s computing power and Enzyme’s software.
The MLN cryptocurrency is used to execute fund operations, and according to the team behind this project, it lowers the barriers to entry for asset management, opening access to more global consumers.
MLN cryptocurrency is also used for voting on the protocol’s software policies, and it is important to say that a total of 1,250,000 MLN coins were created and distributed during the contribution period, and each year, a fixed amount of 300,600 MLN are minted. Enzyme Finance added:
Since network fees are paid for in ETH, the DAO converts the collected ETH to MLN and burns the coins, effectively removing them from circulation. This creates upward pressure on the price and may make MLN coins more valuable long term.
Bears in control of MLNThe last three weeks have been extremely taff for the cryptocurrency market; cryptocurrencies have been suffering from heavy selling due to hawkish signals from central banks, and investors are worried that an aggressive monetary policy could cause an even bigger sell-off.
Data source: tradingview.com Melon (MLN) has weakened from its recent highs above $33, and it may take a long time for prices to see any bigger recovery. The risk of further declines is still not over, the current support level stands at $20, and if the price breaks it, the next price target could be at $17.
On the other side, if the price jumps above the $40 resistance, we have an open way to $50.
SummaryThe cryptocurrency market is losing value this Tuesday, Bitcoin is trading again below $20,000, and investors are worried that an aggressive monetary policy from the US central bank could cause an even bigger sell-off. Melon (MLN) is currently trading more than 75% off from its 2022 highs, and if you decide to buy this cryptocurrency in September, you should consider that the price can weaken even more.
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