$TREE

fell 6.71% over the past 24h, underperforming the broader crypto market (-0.96%).

Key drivers:

Airdrop sell pressure – Early recipients sold unlocked tokens, continuing a post-listing pattern.

Negative funding rates – Bearish derivatives sentiment amplified selling.

Profit-taking – Short-term traders capitalized on the July 30–August 1 rebound from $0.47 to $0.60.

Deep Dive @Treehouse Official #Treehouse

1. Post-Airdrop Selling Pressure (Bearish Impact)

Overview: TREE launched on July 29–30 via Binance-enabled airdrops, distributing 12.5M tokens (1.25% of supply) to users. Airdropped tokens were fully unlocked at launch, leading to immediate sell-offs.

What this means: New token launches often see volatility as recipients lock in profits. TREE’s 24h trading volume ($93M) exceeded its market cap ($64.4M), signaling high turnover typical of airdrop-driven markets.

2. Derivatives Sentiment Shift (Bearish Impact)

Overview: The weighted funding rate turned negative after TREE’s August 1 rally to $0.60, indicating traders began paying to hold short positions.

What this means: Negative funding rates suggest bearish bets increased, creating downward momentum. With TREE’s price now below the pivot point ($0.44), technical traders may view this as a breakdown signal.

3. Profit-Taking After TVL Milestone (Mixed Impact)

Overview: TREE initially rallied 30% on August 1 as its Total Value Locked (TVL) crossed $500M, but retraced as traders sold into strength.

What this means: While the TVL milestone validated protocol adoption, the 3.25% APY on tAssets offers limited incentive to hold TREE during market-wide risk-off conditions (BTC dominance: 61.05%).

Conclusion

TREE’s decline reflects post-airdrop dynamics and derivative market headwinds, outweighing its recent TVL growth. Key watch: Can staking demand via Pre-Deposit Vaults (50–75% APR) offset sell pressure from circulating supply increases?