Understand the reasons behind PONS's decline before deciding whether to buy the dip
The main reason for the drop is that the RB chain has cooled off. The daily new token issuance on the RB chain has fallen from a peak of about 36,000 to around 6,000. Platform revenue has dropped 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; once revenue drops, the buying pressure weakens accordingly.
Additionally, the RB chain faces competition from launch platforms. For example, UNI, which benefited early on, launched its own platform, and its daily token issuance surpassed PONS on the same day.
Whether to buy the dip depends on the on-chain activity and whether this launch platform can produce a breakout project.
One reason to still watch PONS is that the buyback mechanism remains in place. 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 the so-called support doesn't really exist. 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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