- Bancor Protocol’s total value locked surpasses $1 billion in cryptocurrency assets.
- Other developments surrounding the project have pushed BNT’s price by 47% in less than four days.
- If the bullish momentum persists, this cryptocurrency could surge another 35% to hit $9.
Bancor became the 13th DeFi platform to join the “four comma club,” a common moniker given to projects whose total value locked (TVL) hits $1 billion or more. The development has pushed BNT price by 47% in less than four days, with more upswings on the horizon.
Gasless voting and new burn mechanism pave the way
Bancor, an on-chain liquidity protocol, saw its TVL increase by 40% since March 1, pushing it past the billion-dollar-mark to where it currently stands. The reason for such a stark increase could be the recent announcements by the team behind the project. Some notable developments include the “gasless voting” proposal and the new vBNT burn mechanism.
The gasless voting mechanism proposed has received backing from the Bancor team, who tweeted,
Gasless voting enables all BancorDAO members to participate in governance & further decentralizes DAO decision-making.
In doing so, the expensive voting system, which cost an average of $50 in gas fees, will now be eliminated, allowing all users to participate in the BancorDAO governance actively.
Additionally, the new Bancor Vortex burn mechanism proposes to introduce,
A flat 5% insurance premium on swap revenues from both the TKN, and BNT side of all pools.
Since users receive vBNT to stake their BNT tokens, it incentivizes market participants to buy and lock the native token on the protocol. Burning vBNT via the newly proposed mechanism causes a negative supply shock, creating a demand for the BNT token, which pushes its market value higher.
In general, both of the recent developments have helped increase user adoption, contributing to the rise in TVL and increasing the fundamental value of the protocol and its token.
Bancor price poised for an upswing
Bancor price has fully recovered from the correction seen between February 21 and 28. The recovery resembles a rounded bottom pattern that forecasts a 34% upswing from the break of the $6.70 resistance.
Since Bancor price currently trades around the supply barrier at $6.69, a 4-hour candlestick close above it will confirm the start of a 34% rally, which puts BNT at $9.
However, this is unlikely as the Tom DeMark (TD) Sequential indicator has flashed a sell signal in the form of a green nine candlestick on the 4-hour chart. This setup forecasts a one to four candlestick correction before the uptrend resumes.
BNT/USDT 4-hour chart
In the event of a correction, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals a stable support barrier at $6.18. Here, 1,150 addresses hold nearly 4.11 million BNT tokens.
If Bancor price manages to bounce from $6.18 and push past the resistance at $6.70, then the rounded bottom pattern will evolve into a cup and handle formation, maintaining a similar 34% target.
Bancor IOMAP chart
Investors should note that a spike in selling pressure leading to a 4-hour candlestick close below the $6.18 level will result in a 7% downswing. Bancor price will likely drop to $5.71 if this were to happen.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.