Cryptocurrencies are undeniably volatile. As of writing, the total market cap of all cryptos listed on the CoinMarketCap website was nearly US$1.7 trillion, down from nearly US$1.9 trillion last week.
From BTC to ETH and DOGE to SHIB, most large cap cryptos have declined over the last 24 hours. A blockchain-based project, BarnBridge makes for an interesting watch. This is because it claims to help crypto holders in hedging against price fluctuations. Let’s know more.
What is the BarnBridge protocol?
The BarnBridge cryptocurrency project appears to be a decentralized finance (DeFi) focused platform. Its whitepaper speaks about how instead of selling the crypto holding, lending assets, and earning interest in the form of more cryptos brings better returns. BarnBridge claims it can make this DeFi lending and borrowing arrangement “risk-flexible”.
Here, the project envisions a “tokenized risk protocol”, which it says can provide a hedge against price fluctuations in the crypto market. The platform seems to be working toward debt-based derivatives that can bring fixed yields for users. The idea seems to have been borrowed from the traditional bond market where the holders’ income is fixed regardless of how the share of the company is performing in the equity market.
BarnBridge claims its bonds will come in tranches, with varying associated risks.
Also read: 3 cryptos to watch if you are a cryptocurrency beginner
BOND crypto
BarnBridge uses BOND, an Ethereum-based crypto, as its in-house token. The token finds utility in the governance of the protocol and staking. BOND intends to make BarnBridge a decentralized autonomous organization (DAO), where users take governance decisions.
BOND crypto’s price
BarnBridge does not rank among the high market cap cryptocurrencies as of now. It was trading at nearly US$7.8 as of writing and had a market cap of slightly over US$48 million. Over the past 24 hours, however, BarnBridge’s price and trading volume had gained, which made it a better performing crypto than BTC or Ether.
Also read: As Ethereum faces competition, what is ETH’s price prediction by 2025?
BarnBridge crypto’s price prediction
Tradable on platforms like Uniswap and 1inch, BOND has not performed well in the past. From over US$150 per token in 2020, the BarnBridge crypto exhibited a downward slide during much of 2021. By the end of last year, the price fell below US$20.
The price has followed the same sliding trend so far this year. The BarnBridge protocol may have to find users for its DeFi platform for the BOND token to rise.
If the platform is able to prove its value in what it claims is making the DeFi space more rewarding, the BOND crypto may rise to US$25 by the end of 2022. If the momentum sustains, the price may reach US$150 by 2025.
Data provided by CoinMarketCap.com
Also read: What is Everdome metaverse & DOME crypto’s price prediction?
Bottom line
BarnBridge’s claim that it can provide a hedge against price volatility by using derivatives may sound appealing, but the platform has yet to deliver. The BOND token’s price would be a product of BarnBridge’s DeFi platform’s adoption.
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