LAB shares surged after the buyback program was launched, rising over 40% in a single day and hitting a new high of $20 during the session. Market focus is on whether the buyback is converting agreement revenue into actual buying, while also boosting derivatives trading.
The repurchase used $3.401 million in agreement fees.
The project's official statement on the X platform indicates that a buyback program has been launched, aiming to address market concerns about the token's economic structure. Disclosed data shows that the protocol has used $3.401 million worth of fee revenue to buy back a total of 22.644 million LAB tokens.
The team defines this arrangement as converting ecosystem revenue into market demand. According to them, they will also distribute some tokens through community incentives to improve the circulation structure and maintain a more balanced token supply.
Contract open interest and funding rates both strengthened.
Following the buyback announcement, LAB saw a significant increase in derivatives trading volume. Funding rates on several exchanges turned positive, indicating that the long side was gaining an advantage. Open interest also generally rose, with Binance's open interest increasing by 21.83% to $155 million.
In the past 24 hours, over $17 million in short positions on LAB were liquidated across the entire market, primarily on Bybit, Binance, and OKX. Meanwhile, the long/short ratio was above 1 on most exchanges, indicating that short-term market sentiment remains bullish, with the exception of KuCoin.
- 22.644 million LABs have been repurchased.
- Repurchase agreement fee: US$3.401 million
- Binance open interest: $155 million
Prices hit a new high and then paused briefly.
In terms of price movement, LAB rose to $20 at one point during this round of increases. The article mentions that the token had previously experienced a gain of about 16% due to increased demand in the futures market, and this buyback program further strengthened expectations of buying pressure.
In the short term, LAB once saw 12 consecutive 4-hour bullish candles, indicating strong upward momentum. However, the price has stalled for several trading sessions between $19 and $20, suggesting increasing divergence at higher levels.
The original text also mentioned that although the fund flow indicator is still in positive territory, the upward momentum has not continued to expand. This means that there is still capital inflow into the market, but the buying pressure may not be increasing accordingly. If buying at higher levels slows down, short-term volatility may continue to increase.
