$TREE
Treehouse (TREE) rose 13.16% in 24h due to Binance’s collateral expansion and reduced post-airdrop selling pressure.
Binance added TREE as collateral for loans, boosting utility.
Selling pressure eased after airdrop distributions ended.
Technical rebound from oversold conditions after a 46% weekly drop.
Deep Dive
1. Primary Catalyst: Binance Collateral Expansion
Binance announced on 1 August 2025 that TREE is now accepted as collateral for its Flexible Rate Loans and VIP Loans. This:
Increases demand for TREE as users leverage holdings without selling.
Enhances liquidity: TREE’s 24h volume rose 9.37% to $142.6M, signaling institutional interest.
2. Supporting Factors: Airdrop Sell-Off Subsides
The 29 July 2025 conclusion of Binance’s $750K TREE airdrop (source) reduced immediate selling pressure.
12.5M TREE (1.25% of supply) were distributed, with recipients likely offloading tokens initially.
Post-airdrop stabilization allowed buyers to step in at lower prices ($0.57 support).
3. Technical Context: Oversold Rebound
TREE’s price fell 46.44% in the past 7 days before rebounding:
RSI divergence: The 24h rally aligns with oversold conditions (weekly RSI near 30).
High turnover (1.59x volume/market cap ratio) suggests short-term traders capitalized on volatility.
Conclusion
TREE’s rally reflects strategic exchange support and market mechanics rather than organic growth. While Binance’s collateral move adds utility, the token remains 46% below its 30-day high ($1.07), highlighting lingering risks.
Will TREE sustain momentum as its fixed-income protocol gains traction?