In a dramatic turn of events, MYX Finance’s native token, MYX, has been at the center of a financial whirlwind, shaking the crypto market to its core. Over the past 24 hours, more than $40 million has been liquidated, leaving traders and market makers reeling. The token, initially lingering at a modest $0.10, has rocketed to $16 in just 60 days, capturing the attention—and concern—of investors worldwide.
A Sudden Surge
The crypto community has been buzzing as MYX’s value skyrocketed unexpectedly. Crypto analyst Skew noted that MYX “traded pretty normally between $2 & $4,” but a targeted short squeeze propelled the token from $4 to $8, raising eyebrows and sparking debate. “Clearly in the aftermath of that move some liquidity provider or market maker got massive carried out, especially with sizable liquidations that occurred,” Skew remarked on X, formerly known as Twitter.
What makes this surge particularly intriguing is the shadowy nature of MYX Finance. With a total value locked (TVL) of just $55 million and $5 million in open interest, MYX pales in comparison to giants like HyperLiquid, boasting $712 million in TVL and $12.8 billion in open interest. Yet, the fully diluted value of MYX has astoundingly reached $17.7 billion, rivaling HyperLiquid’s market cap of $17.5 billion.
The Mechanics Behind the Madness
The rapid ascent of MYX has raised questions about the mechanics behind such a meteoric rise. More than 80% of MYX’s supply is currently locked, with only 197 million tokens circulating. This constricted supply raises the potential for price manipulation, as several traders have pointed out on X. In a market where liquidity is key, the limited availability of MYX tokens can lead to heightened volatility and susceptibility to orchestrated moves like the recent short squeeze.
Decentralized exchanges, by their nature, offer a fertile ground for such market dynamics. MYX Finance, with its relatively small footprint, has been thrust into the spotlight, its valuation surging despite its modest operational scale. This disparity between MYX’s market cap and its actual market presence has fueled debates about the sustainability of its current valuation.
Market Makers on the Edge
The recent events have put market makers in a precarious position. As MYX’s price soared, so did the risks for those providing liquidity. The short squeeze caught many off guard, and the subsequent liquidations have left a significant dent in the market.
For market makers, managing risk is a delicate balancing act. The rapid price movements of MYX have underscored the importance of robust risk management strategies, especially in the volatile world of cryptocurrencies. The fallout from the MYX surge serves as a stark reminder of the potential pitfalls for those who venture into the high-stakes realm of crypto trading.
A Community Divided
The MYX saga has divided the crypto community. On one hand, proponents argue that the token’s rise is a testament to the dynamism and potential of decentralized finance (DeFi). They see MYX as an emblem of the freedom and innovation that DeFi platforms can offer, challenging traditional financial systems and offering new opportunities for growth.
On the other hand, skeptics warn of the dangers of unchecked speculation and manipulation in the crypto market. They caution that MYX’s rapid rise could be a bubble waiting to burst, with potentially devastating consequences for investors caught in the crossfire.
The Road Ahead
As MYX continues to capture headlines, the road ahead is uncertain. The token’s volatility underscores the broader challenges facing the crypto market, where rapid innovation often outpaces regulatory frameworks and investor protections.
For traders and investors, the MYX episode serves as a crucial lesson in the importance of due diligence and caution. In a market where fortunes can be made—or lost—in the blink of an eye, understanding the underlying dynamics and risks is paramount.
In the coming weeks, all eyes will be on MYX Finance as the crypto community watches to see how the saga unfolds. Will MYX’s value stabilize, or are further shocks on the horizon? As the dust settles, one thing is clear: the world of cryptocurrencies remains as unpredictable and exciting as ever.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
