Huma Finance (HUMA), once regarded as a rising star in the PayFi sector, has recently underperformed, drawing market attention. Over the past week, the HUMA token price has plummeted over 12%, currently trading at around $0.03244. Although the 24-hour volume has increased to $19.57 million, a rise of 35.74% compared to earlier, this seems to have failed to boost market confidence.

HUMA is currently facing a contradiction between valuation and market capitalization. Its circulating market capitalization is $56.24 million, but its fully diluted valuation is as high as $324.46 million, indicating that the valuation may be too high. At the same time, only about 17.3% of the tokens are in circulation, which suggests that there may be significant selling pressure in the future.

As a PayFi project, Huma's core value is primarily reflected in the on-chain credit mechanism and DeFi products supported by stable cash flow. In the early stages, Huma launched an innovative credit model based on income verification, including wage loans and invoice financing, which was once seen as a perfect combination of physical assets (RWA) and credit DeFi. However, recently, Huma seems to lack breakthroughs in product iteration, business cooperation, and narrative promotion, leading to a reduction in its influence in the "payment finance" sector.

From the price trend since August 14, the HUMA token experienced a brief surge in volume, but was unable to change the overall downward trend, currently falling to around $0.032. Although the 24-hour volume has rebounded, the continuous downward price movement has not been effectively curtailed.

This situation has sparked market reflections on the development prospects of the PayFi sector. As an emerging area in financial technology, PayFi needs to continuously break through in multiple aspects, including technological innovation, user experience, and regulatory compliance, to seize long-term development opportunities. Huma's experience may remind industry insiders that relying solely on conceptual hype is insufficient for sustainability; true value creation and practical applications are the keys to a project's success.