Understand the reasons behind PONS's decline before deciding whether to buy the dip
The main reason for the decline is the cooling off of the RB chain. The daily new token issuance on the RB chain has dropped from a peak of about 36,000 to around 6,000. Platform revenue has fallen about 88% from the early September high, and the buyback supporting the price has decreased from over $1 million daily to about $200,000. A large part of PONS's buying pressure comes from fee buyback and burn; when revenue drops, buying pressure weakens accordingly.
Additionally, the RB chain faces competition from launch platforms. For example, early beneficiaries of UNI launched their own launch platform, and their daily token issuance surpassed PONS on the same day.
Whether to buy the dip depends on on-chain activity and whether this launch platform can produce a breakout project.
Reasons to still watch PONS include the ongoing buyback mechanism. Currently, about 80% of protocol revenue is used to buy back and burn tokens. Once fees rebound, the price can naturally recover.
Therefore, don't just look at support levels for these tokens. Recently, listings on Coinbase and Upbit have not seen significant rallies, indicating that so-called support levels are basically nonexistent. Instead, focus on on-chain status and activity to judge. One signal is whether a standout new project can emerge on this launch platform to attract attention.
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