PONS falls 71% from its all-time high as Robinhood Chain activity fades

PONS fell more than 17% in 24 hours and slipped below a $200 million market cap for the first time since August, extending its drawdown from its all-time high to 71%, according to Ambcrypto. The token traded from $0.9725 down to $0.2897 over a correction that Ambcrypto said lasted nearly a month and a half.

The decline is not only a price story. Two reports published around the same time describe a broader pullback in activity on Robinhood Chain, the Layer 2 network where PONS and other launchpad tokens trade.

Also read: Trading Stocks Against BONER: Inside DeFi's Strangest New Market on Robinhood Chain

Key facts

• PONS has fallen 71% from its all-time high, dropping from $0.9725 to $0.2897, and its market cap went below $200 million for the first time since August, per Ambcrypto.
• Robinhood Chain fees fell from a peak of $11.42 million to $595K, a 95% decline, and average daily DEX volumes dropped from $173 million to $8.95 million, according to Ambcrypto.
• Uniswap burns on Robinhood Chain have slowed to roughly 4,000 UNI per day, the lowest level since the burn mechanism launched on that chain, U.today reported.
• Other Robinhood Chain launchpad tokens, including Cash Cat (CASHCAT), Artificial Inu (AI) and BONER, were in drawdowns of more than 10%, Ambcrypto said, showing synchronized weakness across the chain.

Uniswap burns hit a chain-level low

U.today’s figures add a second lens on the same slowdown. Across all chains, daily UNI burns have recently sat between 12,000 and 14,000 tokens, which U.today described as an all-time low for the burn. That is a fraction of the roughly 190,000 UNI burned in a single day at the busiest points earlier this year, when Ethereum, Base, Arbitrum and Robinhood Chain all contributed.

The Robinhood Chain trajectory was steep in both directions. Burns began in late July at roughly 20,000 to 60,000 UNI per day, cooled to around 20,000 in mid-August, and then climbed again from late August. In early September, daily burns exceeded 150,000 UNI, the highest single-day total on the chain. They fell through September, stayed mostly below 20,000 by month’s end, and dropped to a few thousand in recent days.

Also read: Robinhood Chain fuels Ethereum optimism; UK weighs permanent crypto donation ban

Technical pressure meets buyer interest

Ambcrypto described a clearly bearish chart. The Choppiness Index declined to 36.86, and the Stochastic Momentum Index sat in oversold territory at negative 82, which Ambcrypto said pointed to continued short-term weakness. PONS was approaching the 0.786 Fibonacci Retracement level at $0.229, with $0.121 below it; Ambcrypto said a failure of both levels could bring a full retracement.

Order flow showed a split picture. Retailers, whales and smart money were net bullish with a Long/Short ratio above 1.41, but whale positioning on OKX was bearish at 0.70 while on Binance it was 1.99, per Ambcrypto. That combination turned the OI-Weighted Funding Rate green on the 30-minute timeframe, which Ambcrypto read as genuine buying even as price declined. Seller-biased volume still dominated, at 54% of trading and $134 million against $114 million for longs.

Why it matters

PONS holders face two linked problems: a token near multi-month lows and a chain whose usage metrics have cooled sharply since September. For UNI holders, the burn slowdown matters because a weaker burn removes less supply each day, though U.today noted the number says nothing about price by itself.

Robinhood CEO Vlad Tenev has backed the chain’s direction, with Ambcrypto reporting he framed it around tokenized real-world assets and apps people actually use, such as PONS. That support helps explain the dip-buying, but the price needs buying volume to overtake shorts and a flip of the $0.388 supply zone into support. U.today noted the burn data does not show a cause for the activity decline, so attribution remains speculation.

What to watch

The multi-chain daily UNI burn total is the clearest number to track: if it stays near 12,000 to 14,000 tokens, the burn continues at its lowest pace on record, per U.today. A pickup in Robinhood Chain trading would be the most direct signal of a turnaround, and on the price side, traders are watching $0.388 as the level that would need to flip to support.

This article is informational only and is not financial advice. Crypto markets are volatile and uncertain, and readers should do their own research.

Reported by ambcrypto.com.

Sources: AMBCrypto, U.today