Crypto lending platforms have boomed following the rise of decentralized finance (DeFi). One of the best performing is the Celsius (CEL) Network and many investors want to buy CEL.
This article looks into the tech behind the blockchain platform and the price movement of CEL. Let’s dive right into it.
Celsius: Revolutionizing The DeFi Lending Sector
The Celsius Network is a decentralized financial protocol launched by Alex Mashinsky and Daniel Leon in 2017.
It is a banking and financial services-focused blockchain platform that aims to outperform banks by offering services at lower rates.
The project offers services such as loans and payments and gives its users rewards for depositing coins into the platform.
The native asset of the Celsius Network is the CEL token, an ERC-20 standard token running on the Ethereum blockchain.
The total supply of the tokens is 695 million, and this was shared after the initial coin offering (ICO) in 2018.
While there are 383 million CEL tokens are in circulation, roughly 250 million CEL tokens have been kept in the Celsius treasury.
The remaining 67 million CEL tokens are held for Celsius team member bonuses, which are paid out over time.
The CEL token performs a variety of internal functions. It is used for lending, to provide collateral, and liquidity. In addition, CEL is used as a utility token for depositors to gain higher interest on their crypto-asset deposits.
The Celsius network uses a proof-of-stake (PoS) consensus algorithm for its token.
The platform also functions as a wallet through its CelPay feature that allows users to transfer crypto faster and easier. The wallet is free and requires no addresses and private keys.
Celsius Network has a unique structure that allows it to sustainably payout 80% of its revenues to depositors and to incentivize net deposits at a growth rate of over 100% annually.
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CEL Token Making A Recovery
Although CEL started the year with a solid price of $5.999, the token ended up plummeting.
Nevertheless, the asset maintained the $4 mark until it exceeded that price and hit $7.542 on April 9.
CEL’s record high price did not stop there. The asset reached its all-time high (ATH) of $8.02 on June 3. This did not last long, as the price dipped to $5.406 by the end of June and was trading at $4.919 on July 19.
Currently, CEL is up 12.17%, trading at $5.987 on the daily chart. CEL is a worthwhile investment at this present price, as we expect the asset to grow further.
CEL Technical And Fundamental Analysis
The CEL token is currently runtrading below its 20-day moving average (MA) of $6.043, indicating a bullish trend. CEL’s relative strength index (RSI) is at 46.68, meaning it is above the oversold region.
On the fundamentals, Celsius is adding more coins as it moves to grow its network.
Last month, the platform added BNB, BNT, and DOT tokens allowing HODLers to earn weekly rewards on over 40 coins through the Celsius mobile and web app.
“HODLers can now earn weekly rewards on over 40 coins through the #Celsius mobile and web app, and we’ll continue to add cryptocurrencies that support our goal to bring the next 100 million people into the future of finance.” @Mashinsky
🚀 $BNB $BNT $DOThttps://t.co/osftPMLuO9
— Celsius (@CelsiusNetwork) June 28, 2021
The company also disclosed that it would add other cryptocurrencies in the future, with the eventual goal of bringing more people into the future of finance.
Following this, Celsius announced earlier this month that it would be investing over $200 million towards building a Bitcoin mining infrastructure.
Celsius is also moving its business operations to the United States. The firm revealed that it would shut down operations and withdraw its crypto license application in the UK.
The team said that regulatory uncertainty surrounding cryptocurrencies was a key driver for the decision.
Despite regulatory uncertainty, the CEL token remains one of the most promising crypto-assets in the crypto space.
Market analysts believe that CEL is going to rise by far in the future. According to Wallet Investor, CEL tokens will trade at $12.714 in a year while it will climb up to $42.342 in the next five years.
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