Stablecoins and their use in decentralized finance (DeFi) have played a key role in the crypto bull market of 2021, allowing investors to participate in an increasing number of protocols that offer lucrative staking pools and facilitate the process of making transactions straightforward a central exchange.
One project that has seen significant adoption thanks to its focus on creating a truly decentralized ecosystem and offering asset-backed stablecoins is the DeFi Protocol. Abracadabra, money and its native token CURSE.
Data from Cointelegraph Markets Pro and TradingView show that After hitting a low of $ 0.0114 on October 15, SPELL’s price rose 178.55% to hit a new high of $ 0.035 on November 1. while the daily trading volume shot to USD 109.82 million.
Three reasons SPELL is attracting the attention of DeFi users is the growth of Magic Internet Money (MIM) as a fully decentralized stablecoin that can be operated in various blockain networks, the many integrations that extend the reach of MIM and SPELL. have expanded throughout the ecosystem and the governance and economic structure of the project token.
The growth of decentralized stablecoins
One of the biggest factors that is attracting the attention of active DeFi users is the stablecoin Magic Internet Money comes from Abracadabra, which is fully covered and minted by the payment of interest-bearing assets into the DeFi protocol coffers.
The growing popularity and adoption of MIM is reflected in the growing total value of abracadabra, which hit a record $ 4.15 billion on Nov. 1, according to Defi Llama.
MIM’s outstanding offering has also grown steadily and is currently $ 1.93 billion, according to CoinMarketCap. The recent expansion is in large part due to the expansion of the assets that can remain as collateral for Mint MIM, which now includes several of the most popular tokens such as: Shiba Inu (SHIB), FTX Token (FTT), packaged Olympus (OHM) and Fantom (FTM).
Cross-chain integrations expand the reach of SPELL
A second reason investors choose SPELL is the growing ecosystem, which recently added support for several blockchain networks including Fantom and the Binance Smart Chain (BSC).
BSC is the latest addition to the Abracadabra ecosystem after the community voted to support the network in a vote that culminated on October 30th.
Â ™ ‚ï¸ ??!
A new governance proposal should decide whether we should provide https://t.co/gHWEQJMoOc on #BSC!
The voting takes 2 days!
Make sure to vote here: //t.co/9QhH8kAaz8 pic.twitter.com/V47hDgKhI6
– â ™ ‚ï¸ ?? (@MIM_Spell) October 27, 2021
There is a new governance proposal to decide whether to implement it.
The voting takes 2 days!
Other blockchain protocols currently supported by Abracadabra include Ethereum (ETH), Arbitrum and Avalanche (AVAX), and the platform also benefits from several cross-protocol associations, including integrations with Convex Finance (CVX), Yearn Finance (YFI), Curve Finance (CRV) and Sushi exchange (SUSHI).
Cheap token economy and a shrinking circulating supply
Another factor that has caught the attention of DeFi investors is SPELL’s tokenomics, which includes government voting on emissions to control inflation.
The team responsible for SPELL regularly monitors the issuance schedule in the various DeFi pools in its ecosystem to ensure that new tokens are minted and used as beneficially as possible for the protocol and holders.
Due to increasing adoption and price increases, a large number of tokens that were originally supposed to be minted are no longer needed, so the team decided to reduce the issuance schedule by 20% on November 1st.. Thus, 8.7 billion SPELL tokens have been removed from the currently circulating offer.
Â ™ ‚ï¸ ??!@ 0xM3rlin cast the spell “Incendio”!
8.7B $ MAGIC were burned!
Read more about the approved proposal
– â ™ ‚ï¸ ?? (@MIM_Spell) November 1, 2021
Merlin cast the “Incendio” spell!
8.7 billion MAGIC were burned!
Looking to the future, the prospects for the project remain optimistic and the team also plans to further integrate SPELL and MIM into the Fantom ecosystem and offer new staking options for Arbitrum and Avalanche.
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