Tectonic is a decentralized protocol for money markets. Consumers can participate both as liquidity providers and as borrowers. Here, liquidity providers provide liquidity to the market and thus earn a passive income. On the other hand, borrowers can borrow liquidity in a collateralized way. Tectonic is a relatively small player (ranked 57th) in DeFi with around $120 million in total locked value. Tectonic operates outside the Cronos blockchain and is the 2nd largest DeFi protocol on Cronos.
The Tectonic protocol is similar to numerous DeFi protocols in the way you can contribute and borrow, as well as the way algorithms manage liquidity pools.
Below are the functions/use cases of the Tectonic protocol:
- Using the Tectonic platform, traders can borrow specific digital assets and capitalize on their short-term trading vision and maximize their return opportunities.
- The Tectonic platform allows users to access other cryptocurrencies for various purposes without requiring them to liquidate their assets.
- Users can generate extra returns by providing their assets as liquidity providers.
Tonic is the governance and reward token on Tectonic. 51% of tokens were awarded as community incentives for participation, cash mining and picketing rewards.
In terms of performance, Tectonic has been in operation for 1 year. Let’s take a look at TONIC’s performance compared to the top 3 of the last 12 months
- Tonic: -46%
- LDO: +28.8%
- MKR: -63.0%
- AAVE: -42.4%
Tonic lost value in line with most other players. However, on TVL Tonic it has lost 78% of value since its peak which is much higher than LDO, MKR or AAVE.
Overall, there are numerous other DeFi tokens that can be considered in place of Tonic
Competitor analysis: Tectonic vs Aave
Aave is one of the popular Defi lending platforms where users can borrow and lend crypto assets. Here, lenders earn interest on their deposited assets while borrowers use their cryptocurrency as collateral. Hence, Aave is one of the best competitors for the Tectonic protocol. Let’s make a brief comparison between the two:
|Important audience||Users who want to earn passive income on their crypto assets and access instant secured loans.||Users looking for a platform to earn interest by depositing and borrowing digital assets.|
|Categories||Crypto lending, crypto staking, yield farming.||AMM, Crypto lending, crypto staking, Dapps, DEX, Defi projects, yield farm.|
As we can see, the Tectonic protocol has shown positive growth in the last three months. However, that’s why TONIC dropped to its lowest value soon after its launch. Therefore, we certainly cannot guarantee that it has outperformed its competitor during this time because Aave has certainly shown some improvement in recent weeks.
Competitor analysis: Tectonic finance vs compound finance
Compound finance is another DeFi lending protocol where users can easily earn interest on their deposited cryptocurrencies. Hence, it is another notable competitor to the Tectonic protocol. Let’s take a brief look at their past performance and features:
|Important audience||Users who want to earn passive income on their crypto assets and access instant secured loans.||Developers looking for a standalone interest rate protocol|
|Categories||Crypto lending, crypto staking, yield farming.||Crypto lending, Dapps, Defi projects, yield farming.|
Here, compound finance can be seen showing positive growth since the last week and is improving compared to the previous year. Therefore it maintained consistency during this period, unlike the Tectonic protocol.
Tectonic Price Prediction
Before predicting whether TONIC Coin should rise or fall in the near future, let’s retrace its price history in recent months. Its performance in recent months can help us achieve the required context for the future. Let’s discuss:
Above is its chart for 1 year and as we can see that the market price of the Tectonic cryptocurrency a year ago was $0.00000075. So, there is a drop of more than 78.6% in its price in a year, considering its current price of $0.00000016. In addition, there have been numerous ups and downs stating that the hike was not really continuous. It even reached its all-time highest value during that time.
The price of TONIC Coin has increased by more than 38.1% in three months (although the increase has not been consistent), keeping in mind that its price 3 months ago was $0.000000099. However, its price peaked at $0.00000019 during this period (as illustrated below).
The all-time highest value of TONIC (after its launch) is $0.0000018 which it reached in February 2022. Subsequently, the price started to fall and currently has a price of $0.000000016 (again the decline has not been consistent throughout the entire period). Also, its market price a month ago was $0.000000097. It means that it has since increased by more than 39.3%.
Note that TONIC crypto is 91.11% lower than its all-time highest price, meaning it has huge room for growth in the future.
Can TONIC reach 1 cent?
To reach a price of 1 cent, TONIC Coin must grow 50000 times.
After its launch, the
Tectonic cryptocurrency reached its all-time highest price of $0.0000018 in February 2022, where it grew 4.09 times in just 1 month (from the lowest value of $0.00000044 in January 2022).
Therefore, TONIC encryption takes 1016 years, which is impractical. Moreover, the current market situation of liquidity and inflation is definitely not in favor of the cryptocurrency market. Therefore, it cannot even reach that value in the calculated time. Therefore, reaching 1 cent is an impossible task. The only way this is feasible is through a very active burning program that reduces the coins in circulation by 90% or even more.
Tectonic Price Prediction: Will TONIC reach $1?
Considering that, reaching 1 cent is an impossible goal for the TONIC cryptocurrency, $1 will be more difficult and impossible.
Tectonic Price Forecast 2023, 2025 and 2030
Tectonic 2023 price prediction is $0.000000362
Tectonic price prediction for 2025 is $0.0000000602
Tectonic 2030 price prediction is $0.00000235
Tectonic Price Prediction Today
|1. The wisdom of the market||neutral|
|1a. Market data||neutral|
|1b. Technical recommendation||neutral|
|2. The wisdom of the crowd||Partially negative|
|2a. Buzz on social media||lower|
|2b. Social Media Sentiment||neutral|
Earlier this week, Tectonic’s official Twitter account tweeted that “something new is coming” and its prices have risen dramatically since then.
After that tweet, a few hours ago, he announced that isolated loan pools will soon be available. In addition, the Tectonic protocol has partnered with Veno Finance, which is a liquid staking protocol on Cronos that allows its users to bet CRO coins.
is Tectonic’s native token platform and has a maximum supply of 500 trillion tokens, of which 110,316,376,775,748 TONIC coins are already in circulation. The following are the main use cases of TONIC encryption:
- TONIC holders can bet their tokens to get performance rewards in return.
- The TONIC coin allows its holders to participate in the governance of the protocol.
- Users can participate in various activities of the Tectonic protocol to earn more tokens in return.
Where can I buy TONIC crypto?
Tonic crypto can be purchased on a centralized crypto exchange, such as Crypto.com, and two decentralized crypto exchanges, namely VVS Finance and Bored Candy City.
Roadmap for the coming months
The Tectonic protocol aims to further build its platform in the next 3-6 months. Below are the upcoming updates for the platform:
Isolated loan pools- The Tectonic protocol aims to launch additional loan pools in the coming months. Note that these pools will be isolated from existing market pools.
NFT Episode- To further increase its usefulness, the Tectonic protocol aims to allow NFT staking on the platform.
Auto Vault Issues- The platform will soon introduce Auto Vault issues to help users earn higher returns without manual clicks.
Issuance of partnership tokens- The Tectonic protocol aims to help its users earn rewards from other protocols as well. Therefore, it will issue the partnership with other protocols.
Tectonic Price Forecast: Conclusion
defi lending platforms provide more profitable interest rates on funds than traditional banks. It is one of the reasons for their popularity in recent times.
In addition, DEFI loans are processed quickly, transparently and without authorization. Therefore, their popularity is increasing, and people are more engaged in crypto lending platforms.
The Tectonic protocol is one such Defi lending platform that performs the functions mentioned above and has potential.
However, the market is already very competitive with the existence of many of these DeFi lending platforms (such as Aave and Compound Finance). Therefore, it is essential that the Tectonic protocol competes with existing platforms to continue its growth in the future.