Decentralized finance (DeFi) has been a vital aspect of the crypto world over the past few years. There is a lot of competition in this market, and Tectonic is one of the newest players. According to DeFi Llama, the combined value of all DeFi platforms is more than $200 billion. Tectonic has achieved a big milestone as its TVL now accounts for $1 billion of that sum. Since its inception in late December of 2021, the network has been steadily growing, but a recent uptick has caused it to soar. Can the TONIC token help it achieve the same trend?
What Exactly Is Tectonic?
New platform Tectonic builds on DeFi buzz. As a liquidity provider or borrower, users can participate. Borrowers have access to cash, while the lenders have access to liquidity and a passive income. For those who plan to hold cryptocurrency for the long term and want to earn interest, Tectonic’s platform is for you. For those who want to take advantage of short-term trading and farming opportunities, Tectonic’s platform is for you. Finally, Tectonic’s platform is for those who want to capitalise on different cryptocurrencies without selling their original assets.
Tectonic’s financing platform relies on over-collateralization. Borrowers lock in more money than they want to borrow in this way, guaranteeing that the leased funds aren’t stolen by rogue users.
Economics of Tectonic Tokens
Tectonic’s TONIC token can be used to adjust the collateral component for any asset. In the beginning, the Tectonic appears to be a centralised platform. However, over time, the platform will begin to decentralise control. Tonic holders will be able to vote on ideas to alter the platform’s parameters in the future. Security, development, and collateral considerations could all change as a result of these modifications.
With a maximum quantity of 500 trillion TONIC tokens, consumers have plenty of tokens to retain and participate in the governance process. Through staking and liquidity mining, the vast majority of TONIC’s distribution occurs. The remaining funds will be distributed among the members of the team, security personnel, and a conservation area.
This is Tectonic’s first foray into the DeFi platform industry. Is the TONIC token going to stand out in a crowded market?
The Price Evolution of Tonic
TONIC, which went live on December 23rd, 2021, with a price of $0.000004, is a relatively new coin on the market (four ten-thousandths of a cent). Tectonic’s mainnet went live on Cronos the day before this event. On the VVS Finance exchange, the token was released soon after. The exchange also conducted a promotion in which VVS investors received TONIC as a thank you for their participation.
For the first time, the Tectonic team issued a warning to their users that the token’s price will be unpredictable at the beginning and advised them to wait before purchasing it. The team was correct, and the following days saw a dramatic drop in the token’s value. TONIC’s price had dropped to $0.0000009 by the 29th of December (nine hundred-thousandths of a cent).
There Was No Reversal in the Downward Trend and Tonic’s All-time Low Was $0.000004 Two Days After the Snapshot
The token began to rise quickly after that. Coinbase’s Crypto Earn programme, where users deposit tokens and earn up to 3% annually, now includes TONIC. According to the DeFi Llama graph, the rally also corresponds with an increase in total value locked in.
After hitting $0.000001 on January 30th, TONIC remained stable for the rest of the month until falling to $0.0000009 at the start of February. Only a few days later did TONIC begin to rise once more, this time gaining significantly more. On 8 February, the date Cronos reached $2bn in TVL and Tectonic was introduced as a key project in the ecosystem, the coin surged to $0.0000019.
Because of its high worth, TONIC was unable to keep up with it. The platform announced it was cutting its collateral factor by 3 per cent per day until it reached 20 per cent, which caused the decrease. TONIC has a value of $0.000007 as of the 14th of March 2022.
On the 11th of March, Tectonic introduced a staking tool to its platform. A portion of the costs paid by borrowers will be used to reward those who invest in the cryptocurrency. To provide TONIC with even more value and ensure its long-term viability, a stake has been placed.
Prediction of the Tonic Pricing
Depending on who you talk to, different people have different opinions on what the future price of TONIC will be. Prices for the DeFi platform token are expected to rise shortly, and PricePrediction.net is optimistic. For the year 2022, the company predicts that the price of TONIC will rise from $0.000001 to $0.000003. Its Tectonic price forecast for 2030 is somewhere around the $0.000029 mark. “
Tonic’s Future Is Also Predicted by Crypto prediction
According to its 2022 Tectonic price projection, the currency will hit $0.000001, but for the foreseeable future, it believes the token will remain below $0.000003.
As a result of this, DigitalCoinPrice is a little more confident that TONIC will remain stable at $0.000001 this year. Tectonic’s price forecast for 2028 is expected to be $0.000002. According to DigitalCoinPrice’s forecast, TONIC will be worth $0.000004 before the start of the next decade.
Tectonic coin’s price is predicted by TechNewsLeader to rise to $0.0000019 in a year. Price predictions for the coin by Tectonic indicate that it will surpass $0.000004 by 2025. The coin is predicted to reach $0.00004 in 10 years. While demand for DeFi is on the rise, it will become increasingly difficult to distinguish as additional platforms enter the market. Tectonic has proven to be one of Cronos’ leading DeFi systems, therefore it must have what it takes. Its token, on the other hand, has not had the same level of success.
The Cross-chain Money Market Is Offered by Tectonic
When it comes to the latest cryptocurrency developments, the Tectonic mainnet will go live on December 23rd, 2021. Users will be able to instantaneously generate passive income from their funds or borrow money against their assets using this protocol, which intends to deliver cross-chain decentralised money market services. Liquidity is provided by the deposits of savers, which are used to provide variable-interest loans to borrowers. Tectonic’s smart contract algorithm uses supply and demand for assets to establish interest rates.
Timetable for the Release of Tonic Tokens
The token is given out in the following manner:
The development team receives 23% of the total (vesting over four years, daily release)
0.01% of airdrops
To support partner development projects, community efforts, and advisor compensation, 13% of the budget will go to an ecosystem reserve (only used as needed)
13% is allocated to network security and maintenance activities such as audits protocols operations infrastructure upgrades (fully unlocked at launch)
An algorithmic-based non-custodial money market protocol known as Tectonic enables users to acquire rapid loans as liquidity borrowers or earn passive returns by delivering assets. Cronos blockchain technology underpins the Tectonic protocol’s architecture and design, making it compatible with the ATOM and ETH blockchains. As of late 2021, the Tectonic platform was launched, and it is similar to other well-known Decentralized Finance (DeFi) platforms.
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