The BOND crypto price went parabolic on Saturday as investors bought the coin’s dip. The token, which is the native coin for BarnBridge’s ecosystem, rose to a high of $8.42, which was the highest point since April of this year. Its market cap surged to over $48 million, according to CoinGecko.
What is BarnBridge?
BarnBridge is a relatively small but fast-growing platform that seeks to help global investors achieve higher yields in the financial market. The platform was created after the developers realized that over $15 trillion of global debt was yielding negative interest rates. In other words, holders of that debt were seeing their worth plummet even as inflation rose.
BarnBridge was initially launched in Ethereum’s platform. Like other players in the DeFi industry, it has expanded to other platforms like Optimism, Polygon, Avalanche, BNB Chain, and Arbitrum. Still, Ethereum remains its most successful market to date.
Like other DeFi platforms, Barnbridge has seen the value of its holdings plummet in the past few months. At its peak, its DeFi protocol had almost $600 million in total value locked (TVL). Today, it has just $3.1 million, according to data compiled by DeFi Llama.
BarnBridge offers three primary products: SMART Yield, Smart Exposure, and Smart Alpha. Smart Yield Bonds is a cross-platform risk management product that seeks to reduce the risks associated with DeFi. It lets users select a risk profile and then redistribute risk through tokenized, liquid tranches. Its smart yield product has a TVL of over $2.77 million.
Smart Exposure, on the other hand, is a cross-platform risk management protocol that allows users to rebalance any two assets using tokenized strategies. For example, a user who is bullish on ETH can allocate 75% of his assets in ETH and then 25% in wBTC. Smart Alpha has just $155k in TVL.
BarnBridge recently ended its Smart Exposure product following the exposure to Terra and its ecosystem.
It is unclear why the BOND token price has jumped sharply in the past few days. Like I wrote in my recent Contentos price prediction, it is likely because of the ongoing recovery of DeFi tokens. Recently, we have seen the value of blue-chip tokens like Aave, Uniswap, and Curve DAO has jumped.
Another possible reason is that a pump and dump scheme has been going on. This explains why some coins like VGX and Astar Network have risen and declined sharply in the past few days.
BOND is the native token for the Barnbridge ecosystem. It has a total supply cap of 10 million coins.
BOND crypto price prediction
The four-hour chart shows that the BOND price has gone parabolic in the past few sessions. As it rose, the coin moved above the important resistance point at $4.8, which was the highest point on June 7th. It also rose above all moving averages while the Relative Strength Index (RSI) rose above the overbought level.
Therefore, while the BarnBridge price has jumped, there is a likelihood that the coin will resume the downward trend in the coming days. If this happens, the next key level to watch will be at $4.84.