2026-01-15 11:32:08

FRAX as an algorithmic stablecoin was originally designed to maintain a price anchor of 1 USDT. But the current market situation is quite interesting—the spot price has already surged to 129, a premium of exactly 30 points above the target price.

What does such a gap mean? In simple terms, there is a clear deviation in how the market is pricing FRAX. For traders without existing positions, this situation is often worth paying attention to.

If you haven't established relevant positions in your account, consider directly entering a short position at the current market price. Based on the characteristics of algorithmic stablecoins and the current price difference, the target points toward levels below 1. The underlying logic is straightforward: high premiums will eventually revert to fundamentals.

However, the prerequisite is to understand FRAX's mechanism—its value support and stability expectations. Once these factors re-balance, there will be considerable downward momentum.

FRAX-1,99%

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BearMarketSurvivor

· Just Now

129？ Is this guy crazy? It's almost doubled, and he's still calling it a stablecoin. --- Short position? I think it's a gamble. The fact that this premium can last so long indicates something's fishy. --- FRAX should have been crushed long ago. Algorithmic stablecoins are inherently a false proposition. --- A 30-point premium... Basically, the market is betting it won't fall back. Confidence is pretty high. --- Another one talking about returning to fundamentals. I'm getting tired of hearing that. It's no wonder it can't really recover. --- Those who understand the mechanism know this thing will collapse sooner or later. Shorting it now is a safe bet.

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FlippedSignal

· 10h ago

129? This premium is a bit outrageous, feels like playing with fire. I understand the logic behind short positions, but I'm just worried about a reverse dump at that moment. The FRAX mechanism is complex; before betting on a decline, get a good grasp of it. Whether this wave can push below 1 is really hard to say... it's a bit uncertain. With such a large premium, the big players are probably taking advantage of retail investors.

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MetaLord420

· 01-15 11:59

129？This is nonsense... Still want to drop back to 1? Made me laugh. --- Frax premium is so outrageous, feels like someone is speculating, I really don't believe it can be sustained. --- Shorts? I think it's risky, this coin is too deep. --- Wait, is this logic reliable? Can a stablecoin still surge so high? --- I'm a bit confused about Frax, can anyone explain how it became 1.29? --- The bottom-fishing crowd is here haha, but it definitely looks like a bubble. --- Such premiums usually don't end well, based on historical experience. --- I'm not daring to take a short position, it's too risky. --- This wave of Frax is really outrageous, let's wait and see the return. --- Feels like the hype is over the top, the fundamentals aren't that strong.

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BearMarketLightning

· 01-15 11:57

Hmm... 129? Can such an exaggerated premium really be sustained? It feels a bit unbelievable. Short positions are indeed tempting, but I always feel like there's a story behind this kind of market. Don't get caught. I've never really understood FRAX; algorithmic stablecoins sound a bit mysterious. Should I try to bottom fish this time? Or is it safer to keep observing? A 30-point difference... Could there be other support factors I haven't seen? I don't know which judgment to trust. Sometimes the market is just so absurd. What does history say? Have stablecoins like FTX experienced this before? It seems like I need to bet correctly on the reversion rhythm for short positions; the time cost is a bit high. Wait, is this really purely market pricing, or is there some mechanism I haven't understood? It looks risky. I think I'll just watch for now.

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NFTragedy

· 01-15 11:52

129? This premium is way too outrageous; it should have dropped back to 1 long ago. Short positions, get them together. It's ridiculous for stablecoins to be floating this high. I understand FRAX's mechanism; at this level, it definitely can't hold. Algorithmic stablecoins are like this; sooner or later, they'll revert to fundamentals. Feels like it's going to crash down, a bit unsettling.

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ImaginaryWhale

· 01-15 11:50

1.29 premium? How many people are trying to catch the bottom? I just can't figure it out. Short positions are indeed attractive, but I'm worried about the mechanism malfunctioning and causing a reverse surge. Algorithmic stablecoins are inherently mysterious; it's hard to say how long FRAX can hold up this time. Getting back to fundamentals? Who still believes in fundamentals now? The market is just a casino. 30 points. If you shorted and held, you could make a small profit, but if something goes wrong, you're done.

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