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Tectonic price prediction: What is tectonic (TONIC)?

By Nicole Willing and Peter Henn

Edited by Valerie Medleva


Updated

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Tectonic price prediction: Is now the time to buy, hold, or sell? – Photo: Shutterstock

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 what we can find out, and also take a look at some of the tectonic price predictions that were doing the rounds as of 5 January 2023. 

Tectonic explained

Decentralised finance (DeFi) protocol Tectonic launched its mainnet 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, based on computer programs which automatically execute once certain conditions are met, determines interest rates based on supply and demand for assets. Depositors can generate passive yield, or interest, with no lock-up 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,” noted 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 $0.10 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 EVM chains and the Cosmos ecosystem.”

Tectonic is on the Cronos blockchain, and aims to facilitate lending and borrowing across different blockchains. Cronos uses inter-blockchain communication (IBC) to help the Ethereum and Cosmos blockchains work together.

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

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. 

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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 (DEXs).

Tectonic introduces staking

One of the biggest pieces of Tectonic news came on 11 March 2022, when token staking went live. This enabled 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 buy 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.

SOL/USD

170.96 Price
+0.300% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.60 Price
+3.000% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

66,993.40 Price
-0.090% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.13 Price
+7.320% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

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 history

Now, let’s take a look at the TONIC price history. While past performance 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 launched at $0.000004027 on 23 December 2021. It fell to a low of $0.0000007895 on 31 December. The price ticked up to $0.000001153 on 2 January 2022. It then resumed its decline, falling to a low of $0.0000004014 on 24 January 2022. 

The tectonic token price then began to trend higher, rising to $0.000001083 on 30 January 2022, before reaching $0.000001903 on 8 February. But it was unable to hold on to these gains as the cryptocurrency markets fell, and dropped to a low of $0.0000007179 on 12 March 2022.

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 2022. After that, the token made something of a recovery, and was trading at around $0.000000124 on 2 September 2022 before it rose to $0.000000139 on 10 September.

Over the next month or so, the price kept dropping and not even the news that it had partnered with the Cronos Identity wallet-naming service could stop it sliding to a low of $0.00000009713 on 13 October 2022. Later that month, though, there was a rally and it reached a periodic high of $0.0000001936 on 29 October.

In November, the collapse of the FTX (FTT) exchange saw TONIC fall to a low of $0.00000009408 on 14 November before it recovered to trade at about $0.0000001035 on 24 November. After that, it fell down again to a low of $0.00000008708 on 19 December before continuing to slide to close the year at $0.00000008316, representing a year-on-year loss of roughly 90%. 

In the first week of 2023, though, TONIC rallied, spurred on by a rather cryptic tweet from the system saying “somethng new is coming”, and on 5 January 2023 it was worth about $0.0000001185.

At that time, there were a self-reported 110.3 trillion TONIC in circulation out of a total supply of 500 trillion. This figure, if correct, would give TONIC a market cap of around $13.1m, which would mean, if that figure were correct, TONIC would be something like the 639th-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 as of 5 January 2023. 

CryptoPredictions had a tectonic price prediction for 2023 that saw it close the year at $$0.000000149. A year from then, the forecast said TONIC could be valued at $0.000000226. The site went on to make a tectonic price prediction for 2025 that said the token could trade at $0.000000269 in December that year, before reaching $0.000000300 by the end of 2026.

Meanwhile, PricePrediction had a tectonic token price prediction that expected the price to rise over the long term. Based on deep machine learning, the site projected that TONIC could average $0.00000012 in 2023 before potentially hitting $0.00000025 in 2025, with it suggesting TONIC could reach $0.0000018 by 2030.  

Finally, DigitalCoinPrice also expected the price to go up, although at a slower pace. Based on historical data, the website’s tectonic crypto price prediction indicated the crypto’s price could average $0.000000257 in 2023 and $0.000000408 in 2025. After that, the site thought there could be a more growth, and it made a tectonic price prediction for 2030 of $0.0000012.

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 2022 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. As of 5 January 2023, some forecasting sites were quite optimistic about the token’s future. You should remember that crypto forecasts are 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?

Before investing in tectonic, you should do your own research, not only on TONIC but on other money market-related crypto coins and tokens. 

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. Never invest more money than you can afford to lose, because prices can go down as well as up. 

Markets in this article

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