Deep Dive
1. Revenue Pools Launch (Bullish Impact)
Overview: On December 31, 2025, Subsquid launched SQD Revenue Pools, enabling token holders to lock SQD to support network capacity and earn a share of enterprise customer payments (e.g., Deutsche Telekom, PancakeSwap) in stablecoins. This model replaces token inflation with real revenue streams.
What this means: Locking tokens reduces immediate sell pressure while creating scarcity. By tying rewards to enterprise demand instead of token emissions, Subsquid aligns token value with real-world usage. This could attract long-term holders anticipating reduced supply and increased utility.
2. AI Narrative Resurgence (Bullish Impact)
Overview: SQD surged 114% in late December alongside other AI tokens after Coinbase developers released x402 V2, an open-source payment protocol for AI agents with multi-chain support. HTX exchange highlighted SQD as a top performer in its AI sector recap.
What this means: As a data infrastructure provider for AI systems, SQD benefits from renewed capital rotation into AI-related tokens. The timing of this sector-wide rally amplified buying pressure during SQD’s product announcement.
3. Technical Strength (Bullish Impact)
Overview: SQD trades above its 7-day EMA ($0.0743) and 30-day EMA ($0.0711), signaling sustained upward momentum. The RSI at 58.63 avoids overbought territory, leaving room for growth.
What this means: The price holding above key moving averages confirms bullish sentiment, encouraging short-term traders. Volume rose 0.77% to $6.19M, supporting the breakout.
Conclusion
SQD’s gains stem from a strategic product launch that reduces token supply pressure, amplified by sector-wide AI enthusiasm and favorable technical positioning.
Key watch: Will Revenue Pool participation rates validate the tokenomic model this week?