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Perpetual protocol price prediction: Does it have a future?

11:50, 4 August 2022

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Perpetual protocol price prediction: Does it have a future? A gold coin with the PERP logo in front of a price chart
Perpetual Protocol (PERP) coin cryptocurrency blockchain. Future digital replacement technology alternative currency, Silver golden stock chart, numbers up down in background. Photo: Luckymane / Shutterstock.com

Perpetual Protocol saw a successful 2021 with it dominating the decentralised market for futures trading. Along with the total value locked (TVL) into the protocol, its PERP token soared.

This proved too good to be true and the bear market has not been favourable to PERP. But, a new staking feature is fuelling an optimistic outlook for the trading token.

What is Perpetual Protocol (PERP)?

As the name suggests, Perpetual Protocol is a decentralised exchange (DEX) for trading futures. The protocol supports up to 10 times leverage on a number of industry recognised assets, including bitcoin (BTC/USD), ether (ETH/USD), avalanche (AVAX/USD) and BNB (BNB/USD).

Perpetual Protocol’s mission is to create an accessible platform for trading futures. This means high liquidity and low slippage are essential. It uses a virtual automated market maker (vAMM) to achieve this. It provides the protocol’s liquidity and uses constant product curves to make ‘predictable pricing’. The vAMM is also fully collateralised. 

The protocol’s decentralisation plays an important role in reaching its accessibility goals. Developers are able to build on the platform and contribute towards a constantly evolving protocol. 

The Taiwanese entrepreneurs Yenfen Weng and Shao-Kang Lee founded Perpetual Protocol. They had both previously developed an accounting company for crypto startups. The majority of the protocol’s core team is based in Taiwan and it has received backing from high-end investors including Binance Labs.

All about the PERP token

The platform created its own token to encourage long-term users of its protocol and ensure its decentralisation. There are numerous uses on the actual platform, including gaining yield from staking and rewards from trading fees. 

Holders can utilise their PERP to vote on decisions impacting the protocol. For example, a recently passed proposal was to restructure this system as a community decentralised autonomous organisation (DAO).

The majority of PERP’s 150 million total supply has been dedicated to its ecosystem and rewarding holders. The rest is split between investors, the team, and a liquidity pool.

PERP’s past performance

PERP price chart

 Source: CoinMarketCap

PERP launched on 13 September at $1.93 and dipped below this launch price in its first few months. Towards the end of November, it had stooped below $1.

But it did not have to wait much longer before its first breakout. A snapshot vote took place on 14 January 2021 to choose Perpetual Protocol’s next digital asset listing. The community decided on DOT and PERP surpassed $5 on 18 January, the closing date.

The cryptocurrency managed to sustain this momentum and see steady growth over the coming months. This was also down to the protocol’s newfound success. On 19 May, the platform experienced a record $520m in trading volume. The following day its price peaked at $14.62.

Natural Gas

7.05 Price
-3.660% 1D Chg, %
Long position overnight fee -0.0557%
Short position overnight fee 0.0334%
Overnight fee time 21:00 (UTC)
Spread 0.020

US100

11,322.70 Price
-1.540% 1D Chg, %
Long position overnight fee -0.0116%
Short position overnight fee 0.0025%
Overnight fee time 21:00 (UTC)
Spread 1.5

Oil - Crude

79.16 Price
-4.970% 1D Chg, %
Long position overnight fee 0.0089%
Short position overnight fee -0.0251%
Overnight fee time 21:00 (UTC)
Spread 0.03

XRP/USD

0.49 Price
-0.580% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00600

After a consolidation period, it managed to climb even higher in early August. Perpetual Protocol revealed it dominated 90% of DeFi futures market share. It also announced the next iteration of the project under the name Curie. By 4 August, PERP climbed to $17.77.

As the protocol’s TVL rocketed past $10m, the PERP token reached its all-time high of $24.84 on 30 August.

However, this value proved too difficult for PERP to sustain and it was particularly vulnerable to the bear market. Despite a few peaks, the token came crashing down over the following months. It dropped below $10 in December and under $5 in March 2022. It stooped to an all-time low of $0.50 on 18 June.

It has recently started rallying as it announced a new iteration of its token, under the ticker vePERP, forked from Curve’s voting contract. Those staking the token will receive vePERP in return.

At the time of writing, on 4 August, PERP was trading at $1.22 and up 55% in a recent seven-day period.

Perpetual protocol price prediction

There is a mixed consensus over the cryptocurrency’s future. InvestingCube’s perpetual protocol price prediction for 2022 recognised its recent appreciating trend as it gears up to launch vePERP. It said: 

“I suspect that the coin will remain at an elevated level ahead of the launch and then pull back sharply afterward. As such, it will likely retest the important support at $1.”

However, the long-term PERP price predictions were more bullish at the time of writing. PricePrediction suggested it could average out at $1.54 this year and climb to $4.77 in 2025. Its perpetual protocol price prediction for 2030 estimated an optimistic value of $33.05.

A similar forecast was given by TechNewsLeader. The perpetual protocol price prediction for 2025 expected a maximum value of $3.90. This was thought to soar to $37.43 in 10 years’ time. 

DigitalCoinPrice was a little more reserved with its PERP coin price prediction. It only expected an average price higher than $3 in 2028. By the beginning of the next decade, perpetual protocol was thought to average out at $5.52. 

When considering a PERP 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 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

How many perpetual protocol coins are there?

On 4 August 2022, there was a circulating supply of 88 million PERP and a maximum supply of 150 million.

Is perpetual protocol a good investment?

PERP has been depreciating and fallen below its launch price for the first time since January 2021. However, a recent rally is being fuelled as it gears up to launch vePERP rewards for token stakers.

Remember, you should always carry out your own thorough research before making an investment. Even high market cap cryptocurrencies have proved vulnerable to the current bear markets. So investors should be prepared to make losses and never invest more than they can afford to lose. Past performance is not a guarantee of future results.

Will perpetual protocol go up?

At the time of writing, InvestingCube said PERP could pullback after launching its vePERP token. Yet long-term forecasters, including TechNewsLeader, suggested it could still see a strong future.

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 PERP 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 perpetual protocol?

PERP was designed for users of its futures exchange. Holders gain rewards and a chance to vote on proposals impacting the protocol.

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 PERP 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.

Further reading:

 

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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