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Hifi Finance price prediction: Gains for the lending protocol

By Raphael Sanis

Edited by Martyn Cornell

15:07, 6 September 2022

The Hifi Finance logo and text on a blue background
Hifi Finance lets investors trade tokenised versions of user debt – Photo: karnoff / Shutterstock

The crypto winter proved especially damaging to decentralised finance (DeFi) projects, especially after the Luna crash in May. But the lending protocol Hifi Finance is showing signs of recovery from this bear market, with a recent surge in the value of its MFT governance token. 

As of 6 September, MFT was up 15% over the past seven days. However, there is still plenty of lost ground to be made up, with it down at that point 24% over the year.

What is Hifi Finance?

Hifi Finance is a lending protocol that from the outset looks like many other platforms. It offers an accessible route to borrow funds or earn yield by lending cryptocurrency.

However, Hifi Finance is using a unique approach by tokenising the borrowed funds.

Its CoinMarketCap page said: “Buying and selling the tokenized debt enables fixed-rate, fixed term lending and borrowing — something much needed in decentralized finance today.”

These “bond-like instrument(s)” are a smart contract obligation, which will eventually settle on a pre-determined date.

Lenders can purchase these tokenised debts at a discounted rated and then exchange it for “face value”.

Since the lending protocol launched in 2021, it has started developing an ecosystem of projects that build upon the platform. Many of the new applications allow investors to use different  types of collateral, including non-fungible tokens (NFTs), ERC-20 tokens, and the finance protocol’s Sablier “streams” tokens.

The MFT token

Powering this decentralised ecosystem is the MFT token. Investors can utilise it for taking part in governance votes and proposals. It can be further used for securing the protocol by staking and subsequently earning MFT rewards.

Its whitepaper said: “The MFT token — the governance token of the Mainframe Lending Protocol — allows those who hold it to vote on changes to the lending protocol. Note that anyone, not only MFT holders, can submit proposals for an MFT vote.”

Changes that can be proposed to MFT holders include adding new collateral assets, adapting the risk parameters and modifying staking incentives.

Hifi Finance price analysis

Hifi Finance was originally named Mainframe, hence the MFT ticker, and was founded by Mick Hagen, who is also acting chief executive of the blockchain bank Hightop.

Before transitioning into a lending protocol, Mainframe was initially a decentralised chat application and operating system.

MFT/USD price chart, all-time performance

MFT/USD price chart, all-time performance

Source: CoinMarketCap

MFT went live at $0.20 on 5 July 2018. But the token struggled in the crypto market and plunged below $0.01 in August, falling to a low of $0.004 later that month.

The bearish trend stuck with the cryptocurrency and it closed the year at $0.002.

SOL/USD

173.24 Price
-0.810% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

BTC/USD

66,790.65 Price
-0.880% 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

0.58 Price
-2.940% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.13 Price
-2.200% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Hifi finance was unable to escape its depreciating trend for the next two years. After crashing throughout 2019, it stooped to its all-time low of $0.0003 on 13 March 2020.

As MFT entered 2021, Hifi Finance announced its rebrand from Mainframe, along with its new lending protocol endeavour.

The token’s largest surge to date took place in 2021’s first quarter. It rocketed to its all-time high of $0.03 on 3 April.

Yet the cryptocurrency proved volatile and it corrected to the $0.01 level towards the end of the month. MFT then slipped below its launch price in May.

It did see another slight rally in October, but it only managed to muster a peak of $0.016 on 26 November.

The bear market proved too difficult for MFT and it eventually fell victim to the crypto winter in 2022. This was not helped by the crypto crash in May that caused havoc in the DeFi industry.

At the time of writing, on 6 September, hifi finance was trading at $0.003. However, it was showing signs of recovery, rising 15% on the past week.

CoinCodex said there was a bullish sentiment, with 24 technical indicators that gave a “buy” signal and seven “sell” signals.

Hifi Finance price prediction

At the time of writing, the cryptocurrency’s recent rally has led to some bullish MFT price predictions. TechNewsLeader suggested the token might have reached a maximum price of $0.009 in a year, possibly climbing to to $0.03 in five years’ time. Its hifi finance price prediction for 2030 gave a new price record of $0.14.

A similar outlook was provided by PricePrediction, which suggested MFT could average out at $0.006 this year. Its hifi finance price prediction for 2025 suggested the token could pass $0.01 and achievd an average price of $0.017. By the next decade, it suggested, MFT might have passed $0.10.

DigitalCoinPrice’s MFT crypto price prediction was along the same lines. It suggested the cryptocurrency could average out at $0.008 this year, $0.02 in 2025 and $0.09 in 2030.

CaptainAltcoin’s hifi finance price prediction for 2022 suggested the token might drop to $0.004 in October. However, an eventual rally was predicted, with MFT suggested to possibly reach $0.031 in 2030.

When considering an MFT coin price prediction, it is 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 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. Never trade with money that you cannot afford to lose.

FAQs

Is hifi finance a good investment?

Hifi Finance is a lending protocol where users can trade tokenised version of debt at discounted rates and eventually redeem the tokens for “face value”. However, the protocol’s governance token, MFT, has been struggling in the recent bear market and was down 24% year-to-date (as of 6 September).

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 the hifi finance governance token 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. Never invest money that you cannot afford to lose.

Will hifi finance go up or down?

Some forecasters have suggested hifi finance would sustain its current rally, such as TechNewsLeader who expected a new price record. However, CaptainAltcoin has projected a correction over the coming months.

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 MFT 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 hifi finance?

Hifi Finance’s governance token, MFT, has been depreciating since reaching its all-time high last year. It is recently showing signs of recovery, rising 15% over the week to 6 September. But MFT’s volatile price history demonstrates that this rise is not guaranteed to continue.

Whether you should invest in hifi finance 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 and will go down as well as up.

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