Woo Network: After an explosive Q1, is WOO destined to retreat

• Although WOO showed signs of great performance, the short-term sentiment was shaky.
• The project launched support for L2 scaling solutions.

Woo Network [WOO], a project that exists under multiple blockchains including Fantom [FTM], and Arbitrum [ARB], moved up 224 places on the Lunar Altrank.

This sort of climb implied that the project was gaining traction far better than its counterparts across the entire market over the course of the week.

Realistic or not, here’s WOO’s market cap in FTM’s terms

Bears have their eyes on the mark

The token’s social engagements increased by 133% in the last 24 hours, according to LunarCrush. This also triggered a 12.97% rise in the token’s value. Despite the glaring green in some corners, the bearish sentiment overthrew the bullish outlook.

According to the social intelligence platform, WOO’s bearish sentiment increased by 47.9% in the last 24 hours.

Source: LunarCrush

An instance as displayed on the chart above means that investors were beginning to view the token in a contrarian manner to the price rise. But Woo has had an exceptional start to the year.

Besides the significant surge in value, its first quarter (Q1) report revolved around breakthroughs in some parts of its objectives. Woo Network, in the report released on 13 April, stated that it registered explosive growth in WOOFi, the DeFi subset of the network’s ecosystem.

In this district, the project recorded a seven-day trading volume of 196 million while investors pushed the staked WOO to a 100 million milestone. 

Polishing and WOOing the new blocks

Furthermore, there was a new influx of users into the ecosystem. About its priority for the year, which was to quickly adjust to the budding layer two (L2) solutions, the network made some progress with zkSync. The report mentioned:

“WOOFi Swap has quickly adapted to the L2 narrative by launching support for both the zkSync and Base testnets. On the CeFi side, a strategic shift is underway to make WOO X one of the most robust trading platforms globally.”

However, recent market conditions have left some questioning whether the token’s growth is sustainable. In terms of market capitalization, WOO was ranked 88. Like its price, the market cap also gained around 12% in the last 24 hours, rising to 480.31 million, at press time.

Is your portfolio green? Check the Woo Network Profit Calculator

Unfortunately, WOO’s network growth was not able to align with the series of advancements on the network. 

At the time of writing, the network growth fell to five. This implied that WOO was struggling with onboarding new users who would actively participate in transacting.

Source: Santiment