The crypto sector’s total market cap and the prices of major coins like Bitcoin and Ether have recently recovered.
One factor that could be contributing to this rebound is stablecoin project Terraform Labs reportedly using Bitcoin as a reserve currency. However, it is difficult to correctly predict how long this recovery can last.
Separately, the trading volume of crypto asset Celsius (CEL) has recently climbed. What does this project do and how is it different from other assets like Bitcoin and Dogecoin? Let’s find out.
What is Celsius Wallet?
According to its whitepaper, the project appears to be providing wallet services with DeFi features. The DeFi sub-sector within the crypto industry has been gaining traction, possibly due to its lure of enabling passive income from crypto-asset holding.
Celsius wallet claims that users can hold their assets within it to earn interest income. The deposited assets, according to Celsius, are lent to other participants.
Besides, Celsius claims users can also borrow in US dollars by depositing their crypto assets. The assets so deposited would act as collateral to back the loan availed by the user. In this manner, a crypto holder can avail of a fiat currency without having to sell the holding. The whitepaper further mentions that crypto deposits can earn interest in the form of CEL tokens.
Also read: What’s happening with Shiba Inu? What is the ‘$1/SHIB token’ discussion?
What is CEL token?
The native token of the Celsius wallet project is CEL, which, it claims, can be earned as interest income by depositors. Besides, CEL token can enable borrowing in US dollars by depositing crypto assets.
An ERC-20 (Ethereum-based) token, CEL has utility within the Celsius project apart from being a tradable asset listed on exchanges like FTX and OKX.
Also read: ALPACA crypto is gaining: What to know about Alpaca Finance & its token
What is CEL token’s price?
This year has been extremely volatile for CEL token. Its price was over US$4 at the start of 2022, but by the end of January, it fell to nearly US$2. It recovered and reached US$3.5 by mid-February.
The market cap of Celsius (CEL) crypto, as of writing, was over US$570 million. Its price was nearly US$2.4. Though the trading volume was in green, the price was in red, according to CoinMarketCap.
The volatility that it has manifested so far makes CEL token price prediction difficult. Separately, it is not among the top 100 crypto assets, and even top assets like BTC can lose or gain sharply in a very short time.
Data provided by CoinMarketCap.com
Bottom line
BTC has rebounded a little over the past 24 hours. Celsius project claims it helps users earn interest by depositing holding in the wallet. Dollar loans are also highlighted as a key offering. CEL is its native token, with utility within the ecosystem. CEL price prediction can be very speculative because its price has fluctuated quite widely in 2022. Â
Also read: Why are Secret Network and SCRT tokens gaining traction?
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