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- A New Decentralised stablecoin ecosystem, Abracadabra.net’s stable coins achieve momentum
- Abracadabra’s SPELL token up by more than 4600% in 3 months time
- The reasons behind gaining traction include cross-chains integrations & a decreasing circulating supply.
Stablecoins have played an extremely significant role in major bull rallies in 2021. The utility of the token allows investors to engage in a number of ever-ranging protocols thereby being offered high-yielding stake pools & the ease of transacting with them, without the help of centralized exchange.
One such project that has gained immense traction & momentum is Abracadabra.money DeFi protocol & its own SPELL & MIM tokens. The protocol is said to be providing a truly decentralized ecosystem & asset-backed stable coins.
The SPELL token was created in the month of August with the total supply currently capped at 21 billion SPELL tokens. The token is up by more than 4600% in 3 months’ time and witnessed an all-time high of $0.0349 on November 4th, however, the token has crashed by almost 20% and is currently trading at $0.0281 at the time of writing.
The reasons for growth are widely ranging, one such would be the bloom of Magic Internet Money (MIM) as a fully decentralized, cross-platform compatible stablecoin. Numerous cross-chain integrations have made sure that Abracadabra’s protocols reach throughout the ecosystem.
The MIM’s can be seen to be growing & gaining popularity as they are fully collateralized & mined by interest-bearing digital assets in their magical protocols. The MIM’s current supply stands at $1.9 billion, with the most recent expansions related to the assets that are used as collateral to mint the MIM stable coins. Their collateral tokens include Shiba INU ( SHIB), Fantom ( FTM), etc.
Another reason behind the rally of the SPELL tokens is the fact that it has recently made itself compatible with other blockchains including Binance Smart Chain ( BSC), the community behind Abracadabra recently voted on October 30th to make itself compatible with BSC. Other protocols include Ethereum, Arbitrum & Avalanche.
Furthermore, the team behind the SPELL token constantly monitors the emission schedule across various ecosystems to make sure that tokens are mined & used in the most beneficial way for both investors & for the blockchain. The team recently has decided to reduce emissions by 20% starting Nov 1. Consequently, this will result in the removal of more than 8.7 Billion SPELL tokens thereby making the existing ones more valuable.
However, there are also concerns & doubts around the protocol as it is still a team of people who’re known to be controlling the dynamics of the tokens, questioning whether the token is even truly decentralized. However, the overall theme of the token is perceived as bullish as they’re asset-backed & limited in numbers for now.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
