Spell Crypto: Making a Price Prediction for Next Year
The rising value of Spell crypto has been happening in fits and starts all year. But on the year, this token has grown to have a nearly $2 billion market cap. And on the year, its value has blown up by more than 3,500%. Nonetheless, investors are wondering if there’s more juice left to squeeze out of Spell crypto. Based on its performance and use case, we think there still could be a good amount of room left for growth.
Let’s start with the basics. Spell crypto is the native token of the lending platform Abracadabra.money. If you’ll excuse the 8-bit graphics of the platform’s website, it’s a pretty interesting project.
This platform allows users (called “spellcasters”) to provide collateral in the form of interest-bearing cryptocurrencies. In turn, spellcasters are given the opportunity to borrow Magic Internet Money (MIM). MIM is a stablecoin that can be exchanged for any other traditional stablecoin.
It’s a pretty straightforward process. Spellcasters just put collateral in and pull out the MIM in the form of a loan. What folks want to do with their loaned out stablecoins is up to them. And when users are ready to pay back their loan, all they have to do is return the original amount of loaned-out MIM and the interest-bearing tokens are released and ready to be added back to the spellcasters wallet.
Really all users need to do to take out a loan with Abracadabra.money is connect a wallet with some interest-bearing cryptocurrency like Venus USDT (vUSDT) or xSUSHI and make a withdrawal. Sure beats dealing 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 be cause for concern for Spell crypto investors. Crypto.com has a very competitive loan program. BlockFi, Celsius Network and Compound Finance are other good examples of cryptocurrency loan operations. So Abracadabra.money does have some stiff competition.
Nonetheless, we really like the simplicity of the Abracadabra.money platform. The main drawback we have with it is the seeming gamification of the process. But this is mainly due to the Nintendo-esque graphics and lexicon adopted to describe the loan process. This is in stark contrast to the slick and professional websites of Abracadabra.money’s competition. But hey, there’s no accounting for taste, right? And to be fair, it’s pretty in line with how a lot of NFT-based games look right now.
It wouldn’t be at all surprising to see this loan platform catch on just because it stands out so much against the competition. And again, it couldn’t be much simpler to navigate. There’s no credit check. No ding on your credit score. And users don’t have to worry about high interest rates. All they’re missing out on is the interest being accrued by the crypto they gave Abracadabra.money in collateral.
While we’re not a big fan of loans in general at investment U, there are of course times it makes sense. And for those times when it does make sense, there is a compelling argument to use Abracadabra.money. Again, all you need is a wallet with some interest-bearing crypto in it to get started. And for that reason, we have high hopes for Spell crypto’s future. It’s already started to catch on. And that’s more than half the battle for a new token.
The Price Prediction
Spell crypto has a total supply of more than 78 billion tokens in circulation. And its max supply is 210 billion. This puts it in the mid-range of many popular cryptocurrencies. That’s well below ridiculous supply of SafeMoon out there. (I know it’s a deflationary token, but still.) But at least it has a max supply… We’re looking at you Dogecoin.
On the other hand, the total supply of Spell crypto is way above that of the 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 that end, Spell crypto has already run its course.
However, considering Spell is currently valued around $0.02 a token, we do see room for growth. In fact, Spell is around 40% below its 52-week high right now. And it wouldn’t be the least bit surprising to see it rise above that number in 2022. In fact, if Abracadabra.money continues to grow in popularity, Spell crypto could hit the $0.05 mark in the coming months.
Remember, cryptocurrencies aren’t just about supply and demand. The underlying technologies and processes they support are just as (if not more) important. And the types of small loans Spell crypto helps support could be valuable for all sorts of folks. Remember, it wasn’t that long ago that executing microloans won the Nobel Prize. We’re not expecting those sorts of accolades for Abracadabra.money. But that doesn’t make it any less of a good idea.
The Bottom Line on Spell Crypto
Any penny crypto comes with a promise of volatility. And needless to say, there’s a whole lot of speculation factored in to cheaper tokens. That’s certainly been factored into this Spell crypto price prediction. An investment in Spell is far from a “sure thing.” But the underlying tech it’s built on shows a lot of promise. And that’s why we anticipate it growing in value over the coming year.
We wouldn’t bet our nest egg on Spell crypto. But any investors with a few bucks to gamble with could do a lot worse that Spell. Those looking to take that chance can head to the Bybit, Bitget or Coinbase exchanges to pick up some Spell crypto.
About Matthew Makowski
Matthew Makowski is a senior research analyst and writer at Investment U. He has been studying and writing about the markets for 20 years. Equally comfortable identifying value stocks as he is discounts in the crypto markets, Matthew began mining Bitcoin in 2011 and has since honed his focus on the cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dogs Dorito and Pretzel.