What Happens To A Token When There Is No Sell Pressure?

Check out this chart of Liquid Driver, priced in USD.

For my followers who aren't crypto native / interested, Liquid Driver is essentially a protocol within the Fantom ecosystem where you can go to stake your LP tokens, and LQDR will autocompound them for you. They pay you out in LQDR, and allow you to lock LQDR for further rewards, based on protocol revenue. People are also excited about LinSpirit, which is too complicated to go into here now. Suffice it to say though, the token has an inbuilt yield, and has some utility.

(you get LP tokens when you provide liquidity to a pair of coins to a decentralized exchange. By doing so, you get a cut of all transactions you facilitate)

However, there is one caveat. LQDR is only worth something if you stake it within the revenue sharing vault for a period of time - locking it. The average time lock on LQDR right now is about 645 days.

This means that if demand stays the same, but the supply (willing sellers) doesn't exist - because it's all locked - you can get price moves like this.

I was aware of the move on December 29th (at $8!!) when I told a couple friends about it, but thought it was overbought so I didn't do anything. Turned out to be a huge mistake, but hey, it happens.

Going forward, im paying more attention to the ACTUAL supply / demand tokenomics on a lot of these projects. I'll leave the inflation theorycrafting to people with more time on their hands.