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Highlights
- Tectonic, a DeFi protocol, has been gaining value over the past few weeks
- The TONIC token of the project is used for staking, but as of now, it has a very low market cap
- The price movement of other cryptos and the performance of the Tectonic protocol would shape its price
Decentralized Finance or DeFi has lately emerged as one of the most popular crypto trends. In the early phases, Bitcoin and a few altcoins like Ether only were considered by enthusiasts. But of late, newer projects like Dogecoin, Shiba Inu and Axie Infinity are leading the way.
Though Bitcoin and Ether are still the top cryptos by market cap, the year 2022 could be about an altcoin with not a very high market cap, currently.
In this regard, the Tectonic crypto, a DeFi project, is an interesting watch. First, it is one of the few cryptos that are trading at a price higher than its price at the start of 2022. It is pertinent to mention that Bitcoin, Ether and most other leading cryptocurrencies are trading below their all-time high values. Second, Tectonic works in the DeFi category, and yield farming and token staking are gaining traction.
What makes Tectonic crypto interesting?
Tectonic is basically a cryptocurrency market maker protocol. The basic offerings are the same as other such protocols like Uniswap.
Users of Tectonic can participate either as liquidity providers or as crypto credit seekers. The former stake their crypto holding, which in turn creates liquidity and brings passive income in the form of interest to the individual. Borrowers are the ones that use these staked tokens to engage in short-term trading and profit making.
Also read: Top 5 altcoins to watch in February
What makes Tectonic an interesting watch is its claim that the transactions on the platform are audited by Slowmist, a blockchain auditor. Besides, Tectonic claims to soon add insurance funds to the network. In the event of any lapses in an under-collateralized loan, this fund can act as a savior.
Tectonic crypto price
Tectonic ranks very low in the CoinMarketCap listing by market cap, but the TONIC crypto’s price surge so far in 2022 has been phenomenal. The TONIC crypto is trading at nearly US$0.0000013 after registering over 15 per cent in gains in the past 24 hours.
Also read: Meta ceases Diem: What does Facebook token’s end mean for crypto space?
Tectonic crypto price prediction by 2025
As of now, the DeFi sector has some very high market cap cryptos like Uniswap, Aave, and Compound. Tectonic crypto has yet to break into this league.
Considering the price appreciation so far this year, Tectonic may reach approximately US$0.00001 by the end of the first quarter, and US$0.0001 by the end of the year. But only a sustained rally can trigger this sort of appreciation. If Tectonic finds more backers for its DeFi services, the price may go beyond US$1 by 2025.
Another key factor is that decentralized lending and concepts like Web 3.0 may become a force to reckon with by 2025. If something like this happens and blockchain-based lending in crypto assets does become a big industry, Tectonic crypto may even reach into the double-digit price territory in the coming five years.
Also read: What is Pocket Network & POKT crypto’s price prediction?
Data provided by CoinMarketCap.com
Bottom line
Tectonic crypto’s price movement relies both on the network’s performance in the DeFi sector, and on the overall price trend of the cryptocurrency market that has thousands of assets to explore.
Also read: Crypto Catch: North Korean hackers reportedly use stolen crypto to fund missile programme
