Flare price has surged by more than 12% today as the global market cap dropped by about 2.20% after Germany’s largest multinational lender Deutsche Bank shares tumbled on Friday as financial industry fears continue to spread following the string of global bank failures, especially in the US, this month.
Today’s crypto market plunge is highly attributed to yesterday’s Deutsche Bank shares dive and the hard European bank stocks plunge on Friday following the collapse of Credit Suisse and several other banks in the United States. Deutsche bank shares fell after the cost of insuring the bank’s debt against the risk of default shot to a four years high.
But why is the price of Flare (FLR) rising as the rest of the major cryptocurrencies plunge? Bitcoin and Ethereum, for example, have dropped by about 2% and 3% respectively over the past 24 hours.
The price of the FLR token has been on the rise since Flare launched the FlareDrop on March 14 less than a month after Flare blockchain demonstrates buying NFTs on its chain using tokens on a different blockchain.
Flare plans on holding a series of 36 monthly FlareDrops totalling 24.2 billion FLR to active Flare community members who have wrapped their Flare tokens. The drops started on March 17 with tokens being claimable at 12:00 UTC every 30 days after March 17, 2023. Any unclaimed FLR drop tokens 67 days after each distribution will be burned.
Yesterday (March 25) Flare announced through a post on Twitter that the first FlareDrop that started on March 17 has already been completed and that the next drop will be started on April 16 as scheduled. The rate at which the FLR token drop has been embraced by the community represents an increased appetite among the community for the FLR token, something that is most likely pushing the price of Flare up.
The FlareDrops are scheduled to continue until January 2026 with the last drop scheduled for January 30, 2026.
The post Flare price surging as Deutsche Bank failure push markets down: here’s why appeared first on Invezz.