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The crypto market is slightly higher today than yesterday, but some coins are clearly outperforming the rest.
On the Dutch exchange Bitvavo, the smaller token Tensor is grabbing all attention with a phenomenal 86% surge. Dutch traders are now flocking to this token, but why is it suddenly rocketing?
Tensor Surges 300% in a Week #
While Bitcoin, Ethereum, and most major cryptocurrencies show only modest gains today, Tensor is experiencing one of its best trading days since its launch last April.
Yesterday morning, one TNSR cost less than €0.08. By 14:00, the price was above €0.16. In one fell swoop, the token became 86% more expensive, making Tensor stand head and shoulders above the rest of the market.
With a market cap of about €69 million, Tensor now ranks 323rd in the sector. Its total value even peaked above €100 million, a level not seen since March.
Over the past week, the price has risen by 300%. That explosive growth hasn’t gone unnoticed in the Netherlands. Today, Tensor is the fifth most traded token on Bitvavo, out of over 350 available. Almost as much money is being traded in it as in Solana.
Tensor itself is an NFT platform running on Solana. NFTs can be seen as digital collectibles, like art or game items, for which you can prove ownership via the blockchain.
The TNSR token belongs to that platform and is used for voting on important choices within the project.
Three Reasons for the Massive Price Surge #
Several reasons can be identified for the price explosion:
- Acquisition by Coinbase Coinbase, one of the world’s largest crypto exchanges, recently acquired Vector. That is a platform built by Tensor Labs.
This suddenly brought Tensor into the spotlight. For many investors, this feels like confirmation that Tensor is being taken seriously by major players, which pushes the price up.
- Large Number of Tokens Burned The Tensor Foundation destroyed 21.6% of all TNSR tokens that had not yet been released. Such a ’token burn’ reduces the total supply.
The lower supply creates scarcity, which in crypto markets often immediately leads to buying pressure.
- Technical Breakout in the Chart Tensor recently broke out of a downward price pattern that had persisted for months, which was a clear buy signal for many traders. As a result, trading volume suddenly increased sharply.
The rapid rise also led to a so-called short squeeze: many traders who had bet on a decline were forced to close their positions by buying anyway. That extra buying pushes the price even higher.