A melt-up happens when the price of an asset rises rapidly mainly due to investor fear of missing out.

These rapid and price rises of an asset are often followed by a sharp decline in the price of the asset, as the unsustainable rise in prices leads to a correction. They can be caused by a variety of factors, including increased demand for the asset, positive news or developments, or market speculation.

In the context of crypto and decentralized finance (DeFi), a melt-up is a sudden and rapid increase in the price of a particular cryptocurrency or other digital asset, often driven by speculation or hype.

Melt-ups are a common phenomenon in the world of crypto and DeFi, and can have a significant impact on the value of cryptocurrencies and other digital assets. They are an important factor for investors and traders to consider, and can help to identify potential buying and selling opportunities in the market.

« Back to Glossary Index