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Cream Finance price prediction: Will CREAM rise?

By Ankish Jain

Edited by Alexandra Pankratyeva

14:57, 15 March 2022

Stock market or forex trading chart in futuristic concept suitable for financial investments or economic trends business ideas and all artwork design. Brief financial statement
Cream Finance price prediction: Will CREAM rise? - Photo: Shutterstock

Decentralised finance (DeFi) protocols have witnessed high volatility since the start of 2022. According to DeFi Pulse, the total valued locked (TVL) on DeFi protocols declined from $97.50bn on 1 January to $72.21bn at the time of writing (15 March), a fall of nearly 26%.

Cream Finance (CREAM), a decentralised lending protocol, has also experienced significant price swings within the past few months. According to DeFi LIama, Cream Finance’s TVL declined from $2.15bn on 1 January to $390.81m at the time of writing, a decrease of nearly 82%.

The cream coin price chart on CoinMarketCap showed CREAM was trading at $41.27 at the time of writing (15 March), down 88% from the all-time high of $368.26 on 4 February 2021.

Can the CREAM coin value increase in the coming days, and is it a worthy long-term investment? This article covers fundamental analysis, along with a cream finance cryptocurrency price analysis and recent news and developments to help you form a plausible cream coin price prediction.

Cream Finance price prediction

What is Cream Finance?

Cream Finance is a permissionless, transparent and non-custodial lending protocol that enables individuals and protocols to access financial services. 

Cream Finance is available on Ethereum, Binance Smart Chain (BSC) and Fantom. Its smart contract money markets are designed towards long-tail assets to boost the liquidity management of all assets traded on cryptocurrency exchanges. Long-tail assets are cryptocurrencies that are less well known and have a low trading volume.

Users can lend any supported asset on Cream Finance’s marketplaces and use the capital issued as security to borrow another supported asset.

At the moment, Cream Finance’s money markets support a diverse selection of tokens, including stablecoins, interest-bearing stablecoins, DeFi coins, liquidity provider tokens (LP-Tokens) and other cryptocurrencies.

Cream Finance also specialises in flash loans, which enable developers to get undercollateralised financing. These flash loans are approved if the borrowed amount and fee are repaid within a single transaction block.

Flash loans have a variety of applications, including democratised liquidations, arbitrage, collateral swapping and interest rate swapping.

Cream Finance is currently available in two versions: 

  • V1: This provides lending markets for long-tail crypto assets but does not provide protocol-to-protocol lending. 

  • V2: Commonly known as the Iron Bank, V2 supports individual users and various DeFi protocols. The Iron Bank has a smaller pool of more creditworthy assets, and whitelisted protocols can borrow from this pool with little or no collateral. Credit risks are controlled by a mix of security inspection of smart contracts, insurance coverage and a financial backstop.

CREAM is the Cream Finance protocol’s native token. It can be earned by lending, borrowing or supplying liquidity to the Cream Finance protocol. Additionally, the CREAM token is utilised for staking and governance, enabling users to earn incentives on their staked tokens.

Cream coin news and price drivers

CREAM has undergone several important milestones, which may drive the cream token price.

Flash loan attack of 0m

In October 2021, Cream Finance became the victim of a flash loan attack. Hackers stole $130m worth of CREAM tokens from Cream Finance’s Ethereum v1 markets.

This attack used a combination of economic and oracle vulnerabilities. The attacker flash borrowed DAI tokens from MakerDAO to produce a large number of yUSD tokens while also exploiting the price oracle computation for yUSD through manipulating the multi-asset liquidity pool upon which the pricing oracle depended. This all occurred in a single transaction.

After increasing the yUSD price per token, the attacker artificially expanded their yUSD position. Then they set a sufficient borrow limit to drain the overwhelming majority of liquidity from Cream Finance's Ethereum v1 markets.

In response to the attack, the team said it spotted the vulnerabilities and fixed them. 

Launch of Loot-Box NFT game

In collaboration with Project Galaxy and MetaFactory, Cream Finance released Loot-Box, an NFT-based game, in October 2021. This game was created to reward current Cream Finance users and attract new users to the protocol.

Loot-Box is structured so that players must accomplish tasks on Cream Finance to obtain NFT loot boxes containing four common and one rare NFTs that can be traded for different rewards.

Launch of money markets on Polygon

Cream Finance established money markets on Polygon in June 2021 to improve the capital efficiency of long-tail assets across various blockchains. Cream’s integration with Polygon led to faster transactions, lower gas fees and expanded market access for Cream’s users.

BTC/USD

64,676.00 Price
-2.040% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,115.97 Price
-7.730% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.12 Price
-6.470% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.61 Price
-3.980% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Users could supply and borrow tokens on the following markets at launch: USDC, USDT, DAI, WMATIC, WETH, WBTC, LINK, SUSHI, CRV and QUICK.

Launch of the Iron Bank on Fantom

In partnership with Yearn.Finance (YFI), Cream Finance developed the Iron Bank in October 2021, a more flexible version of V1 that enables peer-to-peer lending and whitelisted borrow agreements for protocols.

The Iron Bank is the Yearn Ecosystem’s official lending institution. Together, the teams at Cream Finance and Yearn Finance want to improve cryptocurrency corporate structures by further aligning incentives and collaborating on shared objectives.

Defining the new steps for the Iron Bank, the team said: “To start off 2022, we are soon launching the Iron Bank (IB) token where protocol fees will accrue to the veIB token holders.” In a tweet following the announcement, the Cream team added: “Per the Iron Bank announcement, $CREAM token holders will be eligible to receive IB token distribution in the form of four-year locked veIB on Fantom Opera.”

CREAM/USD price analysis

According to CoinMarketCap (as of 15 March), cream finance cryptocurrency CREAM has delivered a negative ROI of more than 70% since its inception.

Based on the earliest available price data from 2020, the CREAM token price declined from $69.43 on 5 August to its all-time low of $9.24 on 7 August, a massive fall of nearly 87% within two days. CREAM token’s market sentiments turned bullish after the retracement, and it reached a high of $282.43 on 10 September, an increase of 2,956% within a little more than a month. 

Interestingly, the DeFi coin market was neutral during this period. For example, Terra (LUNA), the largest DeFi coin by market capitalisation (as of 15 March), traded sideways between August and September 2020, from $0.335 on 7 August to $0.349 on 10 September. 

The retracement sent the CREAM price to $20.84 on 26 October 2020, a decline of nearly 93% from the September peak. However, the broader cryptocurrency market was bullish during this period. Bitcoin (BTC) spiked from $10,363 on 10 September to $13,075 on 26 October, adding 26% to BTC’s value. The CREAM token also rebounded and closed the year at $58.99.

The market sentiment turned bullish for the CREAM token in January 2021. Its price spiked from $67.32 on 1 January to $368.26 on 4 February, an increase of 447% in little more than a month. However, the CREAM token declined to $100.11 on 17 March and bottomed to $90.14 on 24 April.

After making the April low, the CREAM token started moving in a bullish trajectory and reached $211.21 on 15 August. However, the retracement sent the price down, and it reached its 52-week low of $26.06 on 4 December. It closed the year slightly higher at $37.18.

After entering 2022, CREAM reached a 90-day high of $92.34 on 15 January. It then declined to a 90-day low of $28.69 on 31 January, a fall of nearly 69%. At the time of writing (15 March), CREAM was trading at $41.27 and had a market capitalisation of $25m.

Cream Finance (CREAM) all-time performance

CREAM crypto price prediction: Targets for 2022-2030

DeFi has established a strong foothold within the blockchain infrastructure due to its suitability for processing financial transactions, lending and borrowing. More cross-border payment providers, particularly in developing countries, commenced transferring funds through blockchain platforms in 2021, a trend that is expected to increase in 2022.

Meanwhile, Grayscale, a digital currency asset management firm, stated in its 2021 DeFi report: “DeFi users have grown ~6x year-to-date to 3.5 million and will soon approach the scale of leading banks if this rate of growth can continue. Total value locked in DeFi exceeds $170 billion, which would be ~1% of all US commercial bank deposits, or make DeFi the 18th largest US bank by assets. From these assets, DeFi is on pace to generate ~$5 billion in annual revenue. The global financial system generates $5.5 trillion in revenue by servicing ~$300 trillion in assets, while a single US digital wallet user could be worth ~$20,000, leaving a large opportunity for DeFi.”

While DeFi’s rise seems imminent, what is the cream finance price prediction, given the CREAM token price volatility?

The short-term CREAM forecast from CoinCodex remained bearish today (15 March), with seven indicators giving bullish signals and 21 bearish signals. 

All the daily and weekly simple moving averages (SMA) and exponential moving averages (EMA) (except for the SMA 50, SMA100 and EMA3) as well as the Average Directional Index (ADX), Hull Moving Average (HMA), and volume-weighted moving averages (VWMA), were giving bearish signals. The Williams Percent Range and Stochastic Fast gave ‘buy’ signals. 

Meanwhile, the Relative Strength Index (RSI) and the Moving Averages Convergence Divergence (MACD) stayed neutral.

According to a short-term cream finance prediction by CoinCodex, it could rise by 1.38% to reach $42.19 by 20 March.

Meanwhile, several algorithm-based forecasting services gave a mixed long-term CREAM coin price prediction as of 15 March:

  • According to Wallet Investor’s CREAM price prediction, the token could be a bad long-term investment. It predicted that the average price of CREAM could reach $3.69 by the end of 2022, $3.03 by the end of 2023, $2.28 by the end of 2024, $2.05 by the end of 2025 and $1.52 by the end of 2026. Its five-year CREAM prediction suggested that the token could plunge to $1.55 by March 2027.

  • On the other hand, Digital Coin expected that CREAM could be a decent long-term investment. According to its CREAM crypto price prediction, the cryptocurrency could hit an average of $54.63 in 2022, $63.32 in 2023, $58.24 in 2024, $86.01 in 2025, $73.51 in 2026, $104.34 in 2027, $134.54 in 2028, $170.99 in 2029, $190.98 in 2030 and $222.29 in 2031.

  • Price Prediction’s cream finance crypto price prediction was also bullish. It estimated that the average price of CREAM could hit $54.84 in 2022, $79.68 in 2023, $119.19 in 2024, $168.24 in 2025, $254.10 in 2026, $365.63 in 2027, $531.27 in 2028, $787.08 in 2029, $1,177.41 in 2030 and $1,727.26 in 2031.

When looking for a cream finance coin price prediction, bear in mind that analysts and algorithm-based projections can be wrong. Their CREAM expectations are based on technical studies of a cryptocurrency’s past performance, which is no guarantee of future results.

Note that it is essential to do your own research and always remember that your decision to invest in CREAM coin or any other coin depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. You should never invest money that you cannot afford to lose.

FAQs

Is Cream Finance a good investment?

Cream Finance is a decentralised lending and borrowing protocol launched in 2020. Since then, it has returned a negative ROI of 70% for its investors. In addition, it underwent a flash attack in October 2021. As a result, hackers stole CREAM tokens worth $130m, demonstrating its network vulnerabilities. Moreover, its price action has been bearish since making an all-time high in February 2021. 

Whether the CREAM cryptocurrency is a good fit for your investment portfolio depends on your circumstances and risk tolerance. You should consider the level of risk you are ready to take before investing, and never invest any money you cannot afford to lose.

How high can the cream coin go?

According to a cream crypto price prediction from Price Prediction (as of 15 March), CREAM could reach $365.63 by 2027. Meanwhile, Wallet Investor expected that the CREAM token price could decline to $1.55 by the end of March 2027.

Will Cream Finance reach $500?

Algorithmic forecasting tools Digital Coin and Price Prediction (as of 15 March) suggested that the coin has the potential for gains. Price Prediction estimated that the CREAM token price could exceed $500 by 2028.

How does Cream Finance work?

Cream Finance serves as a peer-to-peer cryptocurrency trading and lending platform and operates on the principle of liquidity mining.

Markets in this article

BTC/USD
Bitcoin / USD
64676.00 USD
-1345.95 -2.040%
CRV/USD
CRV/USD
0.2887 USD
-0.0009 -0.330%
CRV/USD
CRV/USD
0.2887 USD
-0.0009 -0.330%
DAI/USD
DAI/USD
1.0248 USD
0 0.000%
DAI/USD
DAI/USD
1.0248 USD
0 0.000%

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