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Benqi price prediction: What is benqi (QI)?

By Peter Henn

Edited by Charlie Mellor

15:05, 24 November 2022

Benqi logo name appears on a blue background
Benqi aims to get to the heart of decentralised finance – Photo: Shutterstock

It aims to make it easier to create liquidity pools, but what is benqi (QI)?

Let’s see what we can find out about this token – which is based on Avalanche (AVAX) – and also take a look at some of the benqi price predictions that were being made as of 24 November 2022, too. 

AVAX/USD price chart

Benqi explained

In the world of cryptocurrency, one of the most important concepts is that of decentralised finance (DeFi). This is, to put it simply, the idea that people should be able to access financial services without having to get involved with centralised banks and institutions.

A report by the World Bank issued in 2017 found that there were 1.7 billion people across the world who did not have a bank account, but roughly 66% of them owned a mobile phone. Supporters of decentralised finance hope to make contact with these people, which will, it is hoped, promote financial inclusion across the planet. 

Something else that links DeFi to crypto is that, when bitcoin was first set up in 2009, the world had just experienced a massive recession and, with there being an increased distrust of banking institutions, the idea that you could have money that did not need banks had a fair bit of contemporary appeal. That said, the bitcoin (BTC) crypto may have been set up using the principles that drive decentralised finance, but that does not mean that it is a DeFi coin

Anyway, two concepts come up a lot when we talk about DeFi protocols and programs. They are liquidity – in other words, how fast an asset can be transformed into cold, hard, cash – and staking, the idea that you can lock away your money in a liquidity pool – a pile of money that provides liquidity to a crypto, making it easier to trade – in return for rewards, usually paid out in the form of cryptocurrency. Liquidity pools are, for what it is worth, very popular with decentralised exchanges (DEXs). 

BENQI is a platform that features two protocols which help address these two matters. To quote the system’s whitepaper, the Benqi Liquidity Market protocol “enables users to effortlessly lend, borrow, and earn interest with their digital assets.

“Depositors providing liquidity to the protocol earn yield [interest], while borrowers are able to borrow in an over-collateralised manner. The Benqi Liquid Staking protocol is a liquid staking solution that tokenises staked AVAX to grant users the ability to utilise the yield-bearing asset within decentralised finance applications.”

In addition, the platform’s money is secured by smart contracts, computer programs that automatically execute once certain conditions are met. 

Every blockchain-based platform needs to have its own native cryptocurrency, and BENQI has the conveniently named benqi crypto, also known by its ticker handle of QI. This token is used to give its holders the chance to vote on changes to the BENQI network, and it can be bought, sold, and traded on exchanges.

BENQI was created by Rome Blockchain Labs, which means that it shares the RBL’s founders of JD Gagnon, Hannu Kuusi and Alexander Shul.

Something we need to point out is that, as alluded above, QI and BENQI are based on the Avalanche (AVAX) blockchain. This means that QI is a token and not a coin. You might see references to such things as a benqi coin price prediction, but these references are wrong.

Benqi price history

QI price history chartQI price history chart from launch to present – Credit: Capital.com

Let’s now cast our eyes over the QI price history. While past performance should never be taken as an indicator of future results, knowing how the benqi token has performed previously can assist us when it comes to either making or interpreting a benqi price prediction. 

When QI first came onto the open market in the middle of August 2021, it was worth about $0.54. Soon after it was released, though, it experienced a surge of interest and it soon skyrocketed to an all-time high of $0.4081 on 24 August.

After that, though, it fell down pretty quickly and spent much of the rest of the year trading at somewhere below $0.20, with the exception of a foray above $0.25 in November. It ended up closing the year at $0.1494.

So far, 2022 has been a year that crypto enthusiasts will want to forget while crypto sceptics will see it as an illustration of the folly of blockchain finance. In this setting, QI has not exactly performed well.

BTC/USD

65,835.35 Price
-0.160% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.61 Price
+0.280% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,444.48 Price
-1.240% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

174.04 Price
-0.680% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

The token started the year by moving up to a high of $0.1533 on 2 January and it has not matched such heights since.

Benqi dropped to a low of $0.04433 on 24 February in the wake of Russia’s invasion of Ukraine. Despite an improvement to $0.07837 on 3 April, things got even worse the following month.

The depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency saw the market crash and QI fall to a low of $0.008539 on 12 May. The following few months saw benqi stumble around the $0.01 mark, with an improvement later in the summer to $0.01952 on 8 August. 

After that, though, there was another downturn, and things became worse in November when the bankruptcy of the FTX (FTT) exchange meant that QI fell to a low of $0.005649 on 14 November.

There was some better news on the horizon, as the announcement that the token was to be listed on the Coinbase (COIN) exchange meant that it was worth about $0.0101 on 24 November 2022.

At that time there were 3.18 billion QI in circulation out of a total supply of 7.2 billion. This gave the token a market cap of around $32m, making it something like the 427th largest crypto by that metric. 

Benqi price prediction round-up

With that all over and done with, let’s now take a look at some of the benqi price predictions that were being made as of 24 November 2022.

It is important to remember that price forecasts, especially when they relate to a commodity as potentially volatile as cryptocurrency, very often end up being wrong.

Also, it is worth noting that many long-term crypto price predictions are made using an algorithm, which means that they can change at any time. 

First, CoinCodex had a somewhat mixed short-term QI price prediction. The site suggested that the token could rise at first to $0.011195 on 29 November, but could drop significantly to trade at a $0.009104 on 25 November. The site’s technical analysis was, perhaps appropriately, neutral, with 16 indicators sending out bullish signals as opposed to 13 indicators making bearish ones. 

Next, CoinArbitrageBot seemed to be incredibly bullish in terms of its benqi crypto price prediction. It estimated that the token could rocket to $0.093445 in 2023 and $0.16631 in 2024. The site then went on to make a benqi price prediction for 2025 that said it could trade at $0.26909 before rising further to $0.43539 in 2026. How seriously you take this particular benqi price forecast will depend on whether or not you believe, having made sure to do your own research, QI can overcome the currently bearish crypto market to rise by around 800% over the course of little over a year and by more than 4,000% in the next four years or so. 

Meanwhile, DigitalCoinPrice outlined a benqi token price prediction that said the crypto could reach $0.0122 this year, $0.0256 next year and $0.0359 the year after that. By 2025, the site said QI could be worth $0.0467, with stagnation predicted for 2026 as the token stuck at that price. By 2027, though, things could have started moving up again as benqi could have achieved $0.0545 and $0.0753 in 2028. The site said that QI could break through the 10 cent barrier to close the decade at $0.11 before it went on to make a benqi price prediction for 2030 of $0.15, before it suggestedthe token could hit $0.20 in 2031. 

Finally, WalletInvestor was far more bearish and downbeat in terms of its benqi price prediction for 2023. The site argued that the QI token was in for a challenging 12 months and forecasting it could fall to a mere $0.000614 by late November 2023. 

When considering a QI token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency coins and tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never trade with money that you cannot afford to lose.

FAQs

Is benqi a good investment?

It is hard to say. A lot will depend on whether it can carry on the momentum that was sparked by its recent listing on the Coinbase exchange, as well as the performance of the market as a whole. 

Remember, you should always carry out your own thorough research into any coin or token before making an investment. Even high market cap cryptocurrencies can be affected by bear markets. So investors should be prepared to make losses and never purchase more than they can afford to lose.

Will benqi go up or down?

No one can really tell with any certainty right now. While DigitalCoinPrice was optimistic and upbeat about the benqi future price, WalletInvestor took a far more bearish stance to could happen to QI. It is crucial to remember that price predictions very often turn out to be wrong – and that prices can, and do, go down as well as up. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether QI is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Should I invest in benqi?

Before you invest in benqi, you should carry out your own research, not only on QI but other liquidity and staking-related coins and tokens. 

Ultimately, though, this is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and never invest more money than you can afford to lose because prices can go down as well as up.

Markets in this article

AVAX/USD
Avalanche / USD
29.0214 USD
-1.4223 -4.730%
BTC/USD
Bitcoin / USD
65835.35 USD
-105.45 -0.160%
COIN
Coinbase Global Inc (Extended Hours)
256.05 USD
-9.94 -3.750%
LUNA2/USD
LUNA2.0 to USD
0.4346 USD
0.0036 +0.860%

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