The TONIC price has been in a bullish trend in the past few days as investors cheer the growth of its ecosystem. The Tectonic token is trading at the highest level since March 14th. However, its total market capitalization has jumped to about $42 million, meaning it is a relatively small blockchain platform.
What is Tectonic?
Tectonic is a relatively small blockchain platform built using the Cronos ecosystem. Cronos is formerly known as Crypto.org Smart Chain. It is a non-custodial algorithmic-based money market protocol that enables people to make money by depositing liquidity. After depositing funds, people earn money when the funds are borrowed by other people.
At the time of writing, the total amount supplied has risen to about $875 million while the total borrowed has risen to $487 million. According to DeFi Llama, the platform has a total value locked (TVL) of over $351 million, which is the highest it has been in years.
There are three key parts in the Tectonic Protocol. First, there are HODLers who deposit funds in the network in order to generate returns. Second, there are traders who can borrow certain cryptocurrencies to make money. Finally, there are borrowers who can access funds and pay back with interest.
In February, the developers launched a way to stake the coin. TONIC holders can deposit their assets into an exchange and earn returns. In a statement, they said: “The protocol will direct 50% of all protocol revenue (from liquidation fees and loan repayment fees) into the staking module contract, which will be converted programmatically by smart contracts.”
TONIC price prediction
The four-hour chart shows that the Tonic price has been in a strong bearish trend in the past few months. Along the way, the coin has crashed below the 25-day and 50-day moving averages. It has fallen by over 60% below the highest level in February. At the same time, the Relative Strength Index (RSI) has also been in a downward trend. Therefore, there is a likelihood that the TONIC price will keep falling in the near term. If this happens, the coin will drop to the lowest level this year.
