The growing value of crypto Spell has occurred in spurts throughout the year. But during the year, this token grew to a market cap of almost $ 2 billion. And over the year, its value exploded by more than 3,500%. Still, investors are wondering if there is still any juice left to extract from Spell crypto. Based on its performance and usage, we believe there could still be a good room for growth.
Let’s start with the basics. Spell crypto is the native token of the Abracadabra.money lending platform. If you excuse the 8-bit graphics on the platform’s website, this is a pretty interesting project.
This platform allows users (called “spellcasters”) to provide collateral in the form of interest-bearing cryptocurrencies. In turn, spellcasters have the option of borrowing Magic Internet Money (MIM). MIM is a stablecoin which can be exchanged for any other traditional stablecoin.
It’s a pretty straightforward process. Spellcasters simply put up collateral and withdraw the MIM in the form of a loan. What people want to do with their loaned stablecoins is up to them. And when users are ready to repay their loan, all they have to do is return the original MIM amount loaned and the interest bearing tokens are released and ready to be added to the caster’s wallet.
In reality, all users need to do to take out a loan with Abracadabra.money is connect a wallet with an interest-bearing cryptocurrency like Venus USDT (vUSDT) or xSUSHI and make a withdrawal. Of course, it’s better to deal with a bank!
Spell Crypto: a bullish forecast
To be fair, Abracadabra.money is far from the only player in the game making crypto loans. And that could worry Spell crypto investors. Crypto.com has a very competitive loan program. BlockFi, Celsius Network, and Compound Finance are other good examples of cryptocurrency lending transactions. Abracadabra.money therefore has fierce competition.
Nevertheless, we really like the simplicity of the Abracadabra.money platform. The main downside we have with this is the apparent gamification of the process. But this is mainly due to the Nintendo-style graphics and lexicon adopted to describe the lending process. This is in stark contrast to the sleek and professional competitive websites of Abracadabra.money. But hey, there’s no accounting for taste, right? And to be fair, that pretty much matches how many NFT-based games look today.
It would not be at all surprising to see this lending platform prevail simply because it stands out so much from the competition. And again, it couldn’t be much easier to navigate. There is no credit check. No impact on your credit score. And users don’t have to worry about high interest rates. All they are missing is the interest accrued from the crypto they gave Abracadabra.money as collateral.
Although we are not a big fan of loans in general at U investment, there are of course times when that makes sense. And for those times when it makes sense, there is a compelling case for using Abracadabra.money. Again, all you need is a wallet with some interest-bearing cryptos to get started. And for this reason, we have high hopes for the future of Spell crypto. It has already started to gain momentum. And that’s more than half the battle for a new token.
Spell crypto has a total supply of over 78 billion tokens in circulation. And its maximum supply is 210 billion. This places it in the mid-range of many popular cryptocurrencies. That’s way short of SafeMoon’s ridiculous offer. (I know it’s a deflationary token, but still.) But at least he’s got maximum bid… We’re looking at you Dogecoin.
On the other hand, the total supply of Spell crypto is much higher than that of major players like Bitcoin and Ethereum. So while we remain bullish on Spell, we don’t anticipate another 3,500% spike in the coming year. To this end, Spell crypto has already run its course.
However, given that Spell is currently valued at around $ 0.02 per token, we see room for growth. In fact, Spell is currently around 40% below its 52-week high. And it wouldn’t be at all surprising to see it surpass that figure in 2022. In fact, if Abracadabra.money continues to gain popularity, Spell crypto could hit the $ 0.05 mark in the coming months.
Remember that cryptocurrencies are not correct on supply and demand. Equally (if not more) important are the underlying technologies and processes they support. And the types of small loans that Spell Crypto helps support could be invaluable to all kinds of people. Remember that not so long ago the execution of microloans won the Nobel Prize. We do not expect these kinds of accolades for Abracadabra.money. But it still makes a good idea.
The result on Spell Crypto
All cryptocurrency comes with a promise of volatility. And it goes without saying that a lot of speculation is being factored out for cheaper tokens. This has certainly been factored into this Spell crypto price prediction. An investment in Spell is far from a “sure thing”. But the underlying technology it is built on holds great promise. And that’s why we expect its value to increase in the coming year.
We wouldn’t bet our nest egg on crypto Spell. But any investor with a few dollars to gamble could do a lot worse than Spell. Those looking to grab this chance can head to Bybit, Bitget, or Coinbase exchanges to grab Spell cryptos.
About Matthew Makowski
Matthew Makowski is Senior Research Analyst and Writer at Investment U. He has studied and written about the markets for 20 years. As comfortable with identifying value stocks as he is with discounts in crypto markets, Matthew started mining Bitcoin in 2011 and has since focused on cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dog Dorito.