Stablecoins and their use in decentralized finance (DeFi) have played a major role in the 2021 crypto bull market as they allow investors to participate in the ever-increasing number of protocols that offer high-return pools and ease the transaction process without having to. Use the central exchange.
One project that has seen quite a bit of adoption thanks to its focus on creating a truly decentralized ecosystem and a stablecoin backed by assets is the Abracadabra.money DeFi protocol and its native SPELL token.
Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $0.0114 on October 15, SPELL rose 178.55% to hit a new record high of $0.035 on November 1 as 24-hour trading volume rose to $109.82 million.
Three reasons why SPELL is attracting the attention of DeFi users are the growth of Magic Internet Money (MIM) as a fully decentralized and cross-chain-capable stablecoin, the many cross-chain integrations that have expanded the reach of MIM and SPELL throughout the ecosystem, and token governance and architecture Avatar.
Decentralized stablecoin growth
One of the biggest attracting the attention of active DeFi users is Abracadabra’s original stablecoin Magic Internet Money which is fully secured and minted by depositing interest bearing assets on the DeFi protocol.
The growing popularity and adoption of MIM can be seen through the increased aggregate value confined to Abracadabra, which reached a record $4.15 billion on November 1 according to data from Defi Llama.
There has also been a steady growth in MIM’s circulating supply, which stands at $1.933 billion according to data from CoinMarketCap. The reason for the recent expansion is in large part due to the expansion of the assets that can be pledged as collateral for the MIM instrument, which now includes popular tokens such as Shiba Inu (SHIB), FTX Token (FTT), Olympus Encapsulated (OHM) and Fantom (FTM).
Cross-chain integrations expand SPELL’s reach
The second reason why Inv is taking a closer look at SPELL is its expanding ecosystem that recently added cross-chain support for multiple blockchain networks including Fantom and Binance Smart Chain (BSC).
BSC is the latest addition to the Abracadabra ecosystem after the community voted to add support for the network in a vote that closed on October 30.
A new governance proposal has been put in place to decide whether we should publish https://t.co/gHWEQJMoOc at # BSC!
Voting will continue for two days!
Make sure to cast your vote here https://t.co/9QhH8kAaz8 pic.twitter.com/V47hDgKhI6
– ♂️ (MIM_Spell) October 27, 2021
Other blockchain protocols currently supported by Abracadabra include Ethereum (ETH), Arbitrum and Avalanche (AVAX), and the platform also benefits from multiple cross-protocol partnerships including integration with Convex Finance (CVX), Yearn Finance (YFI) and Curve Finance (CRV). )) and SushiSwap (SUSHI).
Related: Magic Internet Money crosses $1 billion, sets sights on MakerDao
Favorable tokens and declining circulating supply
Another factor that draws the attention of DeFi investors is the token structure of SPELL, which includes governance votes on emissions to control inflation.
The team behind SPELL regularly monitors the emissions schedule across the various DeFi pools in its ecosystem to ensure that new tokens are minted and used in the way that is most beneficial to the protocol and its holders.
Due to increased adoption and a slight increase in the price tag, a large number of originally set tokens no longer needed to be minted, so the team decided to cut the emissions schedule by 20% starting November 1. from the current rolling supply.
♂️!@0xM3rlin Cast an “Incendio” spell!
8.7B SPELL dollar It was burned!
Read more about the approved proposal
– ♂️ (MIM_Spell) November 1, 2021
Going forward, the outlook for the project remains optimistic and the team also has plans to further integrate SPELL and MIM into the Fantom ecosystem and also introduce new opportunities for installation in Arbitrum and Avalanche.
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