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Tectonic price prediction: What is tectonic (TONIC)?


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It is a crypto that provided some excitement when it came onto the market at the end of 2021, but what is tectonic (TONIC)? Let’s see if we can find out anything, and also take a look at some of the tectonic price predictions that were doing the rounds as of 2 September 2022. 

Tectonic explained

Among the newest cryptocurrency projects, the Tectonic mainnet launched on 23 December 2021. The protocol aims to provide cross-chain decentralised money market services, offering users the ability to earn passive income on their funds or borrow money against their assets instantly. Savers’ deposits provide the liquidity for lending to borrowers at variable interest rates. Tectonic’s smart contract algorithm determines interest rates based on supply and demand for assets.

Depositors can generate passive yield with no lockup period to withdraw earnings.

“Residing along the crusts of two crypto supercontinents, Tectonic will be a cross-chain money market at the heart of Cosmos and Ethereum, empowering users to earn passive yields on their Cosmos and Ethereum-based assets, and to get access to instant crypto-backed loans,” notes the Tectonic blog

“While DeFi money markets on Ethereum have managed to achieve massive traction, the network has been constantly constrained by high levels of congestion which results in extremely high network fees and slow transaction speeds. The democratisation of finance requires a network that can handle high scale at low cost. Cronos’ average gas fee is estimated to be less than $0.1 for simple transactions, while the network itself can handle more than thousands of transactions per block.”

It added: “Interoperability will be at the core of Tectonic. Apart from having Ethereum (ETH)-based assets on Tectonic, Cronos, being IBC enabled, will allow us to facilitate the lending and borrowing of any Cosmos (ATOM)-based assets. This enables us to fulfil our vision of being the cross-chain money market between [ethereum virtual machine] EVM chains and the Cosmos ecosystem.”

Tectonic is a decentralised finance (DeFi) protocol on the Cronos blockchain, aiming to facilitate lending and borrowing across different blockchains. Cronos uses inter blockchain communication (IBC) to enable interoperability between the Ethereum and Cosmos blockchain ecosystems.

TONIC is the protocol’s native cryptocurrency token. It’s used for participating in governance and staking into the Community Insurance Pool to earn rewards in exchange for securing the protocol.

Tectonic was created by Particle B, a blockchain-based “incubator”, founded by former Crypto.com CTO Gary Or. 

It is important to note that, because TONIC is based on the Cronos blockchain it is, technically speaking, a token, rather than a coin. You might see references to such things as the TONIC coin or a tectonic coin price prediction, but these are not strictly correct. 

TONIC token release schedule

The token was distributed as follows:

  • 23% to the development team (vesting over four years, daily release) 

  • 0.1% for airdrop 

  • 13% for an ecosystem reserve for sponsoring partner development projects, funding community initiatives and paying advisers (only used as needed) 

  • 13% for network security and maintenance such as auditing, protocol operations, infrastructure upgrade, liquidity reserve (fully unlocked at launch) 

  • 50.9% for community incentives for participating in liquidity mining/staking rewards, including third-party protocols such as yield farming and mining on decentralised exchanges

Tectonic introduces staking

One of the biggest bits of tectonic news came on 11 March 2022, when token staking went live. This enables holders to deposit their tokens into the staking module in return for yield, including a share of the revenue generated from the fees that borrowers pay for their loans. Staking is a separate feature from the TONIC money market. TONIC holders that were included in a wallet snapshot in January were eligible for an airdrop of tokens that they could also add to the staking pool. 

TONIC stakers receive xTONIC as a reward. The exchange rate will rise over time as “the protocol will direct 50% of all protocol revenue (from liquidation fees and loan repayment fees) into the staking module contract, which will be converted programmatically by smart contracts into TONIC via other decentralised exchanges, such as VVS Finance”. 

The tectonic crypto market exchange rate between TONIC and xTONIC is based on the amount of xTONIC minted compared with the amount of TONIC in circulation. As more users take out and repay loans, the staking module will purchase more TONIC from the market, reducing the token supply and pushing up the price. 

Stakers will be able to withdraw their tokens from the staking module at any time, although they will have to wait 10 days to receive their funds.

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Tectonic also plans to launch an insurance fund that will collect 10% of the interest borrowers pay to be used in the event that undercollateralised loans are not paid.

Tectonic price historyTONIC price chart

Now, let's take a look at the TONIC price history. While past perormance should never be taken as an indicator of future results, knowing what the token has done in the past can help give us some much-needed context when it comes to either making or interpreting a tectonic price prediction. 

TONIC/USD launched at $0.000004027 on 23 December. It fell to a low of $0.0000007895 on 31 December. The price ticked up to $0.000001153 on 2 January. It then resumed its decline, falling to a low of $0.0000004014 on 24 January. The tectonic token price then began to trend higher, rising to $0.000001083 on 30 January, before reaching $0.000001903 on 8 February. But it was unable to hold the gains as the cryptocurrency markets fell, dropping to a low of $0.0000007179 on 12 March.

The coin’s value has risen in the past two weeks in line with a rally in altcoins, or alternatives to bitcoin (BTC). TONIC traded up to a high of $0.000001094 on 29 March, before a variety of market factors, exacerbated by a series of crashes, saw it reach a low of $0.0000001109 on 23 July.

Since then, the token has made something of a recovery, and was trading at around $0.000000124 on 2 September 2022. At that time, there were a self-reported 90.82 trillion TONIC in circulation out of a total supply of 500 trillion. If this figure were accurate, at the time of writing it would give TONIC a market cap of around $11.247m – making it something like the 730th largest crypto by that metric, according to data on CoinMarketCap.

Tectonic price prediction round-up

Let’s now take a look at some of the tectonic price predictions that were being made on 2 September 2022. 

Gov Capital was incredibly bearish in its TONIC price prediction. Its algorithm, based on deep learning, projected that the cryptocurrency could have declined to a level that made it a de facto dead coin as soon as 1 October 2022, with the forecast for 2 September 2023 coming in at $0.

Next, CryptoPredictions.com had a tectonic price prediction for 2022 that said it could have closed the year at $0.0000001487, before it could have gone on to $0.0000003 in September next year. A year from then, the forecast said TONIC could have been valued at $0.0000004. The site said 12 months on from then it was possible that the token could have been priced $0.00000046, before it could have reached $0.0000005 in September 2026 and closed that year at $0.0000005156.

In contrast, PricePrediction had a tectonic token price prediction that expected the price to trend higher over the long-term. Based on deep machine learning, the site projected that TONIC could have averaged $0.00000021 in 2022 before it made a tectonic price prediction for 2025 that it could have achieved $0.00000063 and reached $0.00000431 by 2030.  

Finally, DigitalCoinPrice also expected the price to rise, although at a slower pace. Based on historical data, the website’s tectonic crypto price prediction indicated the crypto's price could have averaged $0.000000161 in 2022 and $0.000000235 in 2025 before it could have dropped to $0.000000229 the following year. After that, though, the site thought there could be a recovery, and it made a tectonic price prediction for 2030 that it could have achieved $0.000000567.

When considering a TONIC 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

Is tectonic a good investment?

It is hard to tell. While token staking was only introduced in March for tectonic, a lot will depend on how the crypto market performs over the coming years. 

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 TONIC 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.

Will tectonic go up or down?

It is difficult to say. On one hand, sites like PricePrediction are rather optimistic about the token's chances, but the likes of Gov Capital strike a far more downbeat note. You should remember that crypto forecasts are very often wrong, and that prices can 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 TONIC 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 tectonic?

Whether you should invest in TONIC 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. 

Further reading

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