Mirror Protocol Up 30% Overnight Despite Crypto Market Slump

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The Mirror Protocol (MIR) emerged as one of the top performing tokens in the cryptocurrency market on May 17, although its top trading rivals Bitcoin (BTC) and Ether (ETH) struggled to find direction after a depressing previous daily session.

The MIR / USD exchange rate rose as much as 26.71% to hit its two-week high of $ 4.974. The pair’s upward move was part of a broader upward correction that began Wednesday after the Federal Reserve announced its intention to hike rates through the end of 2023.

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MIR / USD bids were only $ 3,971 prior to the Fed’s announcement. The pair traded near the weekly lows even hours after the Fed’s restrictive signal. In the meantime, Bitcoin (BTC), Ether (ETH), XRP and other high-cap tokens fell against the US dollar.

MIR began rallying in the late US session on Wednesday, shortly after Gemini announced support for a new series of Decentralized Finance (DeFi) projects, including the Mirror Protocol. At 1102 New York time on Thursday, the MIR was up 31.82% from its low of $ 3.971 in the previous session.

The mirror log is gathering after Gemini announced the support of its MIR token. Source: TradingView.com

The dramatic increase in MIR prices was accompanied by higher volumes, indicating the short-term vitality of the token’s uptrend. Meanwhile, MIR was also up sharply on Bitcoin – more than 27% in an adjusted 24 hour period – suggesting that traders have decided to park their BTC proceeds on the Mirror Protocol market as the flagship Cryptocurrency reacted negatively to the Fed’s rate hike plans.

Mirror protocol V2

Traders also picked their bullish signals for MIR from the testnet launch of the Mirror Protocol on Tuesday.

In detail, Mirror Protocol is a Terra blockchain-based protocol for creating synthetic assets called Mirrored Assets (or mAssets). These fungible tokens mimic the price behavior of traditional and digital financial assets. Hence, traders can use Mirror to get exposure to conventional markets without holding actual stocks, commodities, and the like.

Messari, in his February analysis, compared Mirror Protocol’s vision to that of Robinhood, a popular retail stock exchange app designed to democratize finance for people around the world. But Mirror Protocol, with its perk of being a DeFi project, can eliminate several inefficiencies associated with centralized services like Robinhood.

“By tokenizing assets on a blockchain, the information for all historical transactions of an asset becomes public and immutable, eliminating the need for trust between parties residing in the same physical area,” wrote Messari researcher Ty Young.

The early enthusiasm helped Mirror Protocol become one of the trendiest DeFi projects after launching in December 2020. As of May 2021, the project had amassed more than $ 2 billion in total. It currently holds about $ 1.79 billion.

Mirror log statistics. Source: DeFi Lama

V2, which was first rolled out in April 2021 for a governance vote, expects new functionality to be added to the emerging Mirror protocol. These include incentives for governance participation, new MIR-enabled collateral options, and asset whitelisting prior to going public.

The next level of resistance for MIR is lurking near its price cap from May 24th to June 6th of $ 5.2.