Cryptocurrencies today are a huge industry with a multi-billion-dollar annual turnover. Although they are relatively new as a new form of money and digital asset class, interest in crypto by investors and ordinary users alike has been growing exponentially over the past few years. Today, there are already more than 18,000 different crypto projects with their own unique tokens. The main challenge for those who want to invest in cryptocurrencies is not to get caught up in the hype, as many projects have very vague goals and work solely to raise money. However, among the recently launched crypto projects, there are some promising variants aimed at renewing and improving the industry as a whole. One of them is Tectonic, a project based on Cronos blockchain and aimed at enabling interoperability between ecosystems of different crypto projects to enable external communication between blockchains.
At the moment, the developers of Tectonic are working on establishing interoperability between the Ethereum and Cosmos blockchains, two major players in the cryptocurrency world. That said, Tectonic – with its TONIC native token – is a very young crypto project whose future seems uncertain. However, the goals outlined in the whitepaper seem very promising. We are here to talk about the Tectonic crypto project, its key features and advantages as well as to make our Tectonic price prediction for the near term to give potential investors an idea about the token and its value.
What is Tectonic Crypto?
Launched in late December 2021, Tectonic is a new crypto project aimed at providing a decentralized financial system that allows users to make deposits and receive passive income from their funds, as well as instantly borrow against their assets. Cross-chaining is a key feature of Tectonic. So, at the moment, the project focuses on providing interoperability between the Cosmos and Ethereum platforms. Lending through the Tectonic platform will be at floating interest rates, with liquidity provided by the deposits of those who choose to invest in the project. Interest rates on the platform will change based on supply and demand, as set out in the Tectonic smart contract algorithm.
According to the new crypto project’s blog, Tectonic is an add-on or additional layer connecting Cosmos and Ethereum, allowing users to benefit from both promising crypto platforms. Tectonic users will be able to earn additional income from token ownership as well as take out quick loans at competitive interest rates. Loans on the Tectonic platform are backed by cryptocurrencies, making such financial products more secure and reliable.
Basics of DeFi and Challenges Tectonics is Designed to Solve
The prevailing economic narrative this year is that of inflation, i.e., when your dollars in your bank account are devalued. Inflation as a negative economic phenomenon has been exacerbated by the pandemic and the Russian military invasion of Ukraine. Since March 2020, financial assets have risen rapidly in value with the S&P soaring to its all-time high. However, it was the cryptocurrency market, where Bitcoin reached its all-time high of $69,000 in October 2021, that saw the fastest growth. As Bitcoin has a limited supply of 21 million tokens, it is increasingly seen as a financial safe haven that can protect against inflation. However, the cryptocurrency world is much more than just Bitcoin. Today, there are several crypto projects with more advanced blockchain utilizing so-called smart contracts and decentralized applications (dApps). And to understand what Tectonic crypto is, let’s take a look at the financial system of the future.
Introduced by the creators of Ethereum, DeFi is essentially the banking system of the future designed to provide access to a wide range of banking services to anyone with access to the internet. Essentially, it is a decentralized, open-source platform with no hidden fees or discretionary restrictions. Today, there are many DeFi applications that allow users to lock their funds into smart contracts in order to borrow, lend or simply hold funds for savings purposes. Decentralized financial systems have such remarkable features as high liquidity, low operating costs and complete digitalization. Since there are virtually no intermediaries or third parties, users benefit greatly from their own funds.
However, things are not as simple and rosy with DeFi as they may seem at first glance. If the concept of a new financial system is perfect, we would probably see everyone abandoning traditional banking systems, which are slow and expensive in terms of transaction fees. However, this is not happening, and the reason is that DeFi has become a hostage to its own success. According to Tectonic coin news, there are crypto projects created to solve DeFi’s existing problems. The main challenge for the banking system of the future is centralization due to the fact that most DeFi transactions take place on the Ethereum network. And every transaction has its own value (transaction fee), which is counted in ETH, native tokens of the platform. With the rapid growth of the decentralized financial system, the transaction fee rises quickly, and is between $20 and $200, depending on the complexity of the transaction. In addition, DeFi is much more complex to understand and use, and so the DeFi protocol is still very far from global adoption.
However, perhaps the biggest challenge facing digital banking is scalability. According to the concept of blockchain, the distributed ledger where cryptocurrencies circulate, every transaction must be entered into the database as an immutable publicly accessible record. This implies a limit to the number of transactions that can be entered into the distributed ledger per unit of time. And that’s why there was a need to establish cross-network interoperability, which Tectonic and some other similar crypto projects are intended to provide. As a reminder, at the moment, most users of DeFi and its capital are still relying on the Ethereum blockchain. As for Tectonic, this project uses the Cronos blockchain capable of processing thousands of transactions per second. Cronos provides interoperability between Ethereum and Cosmos, the spirit of the popular blockchain. So, by providing a seamless link to the Ethereum blockchain, Tectonic is here to make a tectonic shift in the development of DeFi by solving the scalability problem.
Features of Tectonic Crypto According to Its Whitepaper
So far, the Tectonic project has passed through the first phase of the pilot and has launched a core network. Many crypto enthusiasts have already participated in Tectonic airdrop, and the project has managed to achieve high ratings within the Cronos ecosystem. Having entered Phase 2, the project continues to create incentives for the community to provide liquidity and offer competitive interest rates on core financial products. Additionally, Tectonic is focused on expanding its current portfolio and enhancing its security measures. For additional benefits from the protocol, the staking mechanism TONIC for xTONIC is available to users. Also, for those who wish to harness project tokens for a long time, Maturity Vaults are available to reap even greater benefits. For such users, there is xTONIC, a token aimed at a longer holding period using the principle “the longer you hold the tokens, the more benefits you get from holding them”. So, in order to get the most out of the project, you need to staking TONIC and locking xTONIC. However, there are certain risks to be aware of:
- The occurrence of under-collateralization and so-called bad debts due to possible low liquidity and the inability to liquidate collateral assets.
- The malfunctioning of Tectonic smart contracts due to external interference or simple programming errors.
- Risk of Oracle failure when the system fails to update prices in a timely manner or does not update prices at all due to a general network failure or a sharp market decline.
A stacking pool can be used to cover the shortfall, whereby the number of staked xTONIC tokens will be deducted from the stakers and distributed proportionally. The token reduction is set at 30% by default, but this can be reconfigured as the protocol takes over the management processes.
Another risk relates to the liquidity threshold when there is uncertainty on some positions due to bearish market movements. In order to warn borrowers and thereby reduce the burden on them, the Tectonic protocol will send appropriate notifications. So, users will get reminder messages or instructions on how to proceed when their loaned assets are at risk. This simple mechanism was introduced by the developers of Tectonic so that borrowers can easily avoid liquidation by posting additional collateral.
Phase 2 was marked by the introduction of many additional functions and features to make platform users less concerned about their funds. However, Phase 3 introduces several additional features primarily aimed at increasing the usefulness of the platform’s tokens. Additionally, the Tectonic developers have focused on improving the user interface to provide an even simpler and seamless user experience. The project is also in talks to connect some third-party crypto wallets as well as bring in major partners. Today, the platform’s tokens are already listed on Crypto.com, HotBit and VVS Finance. According to the creators of the Tectonic platform, users should expect a few more major listings in the near future. Finally, keep in mind that all information given in this paragraph is based on the project’s whitepaper, so you should follow the development of the project yourself to make sure it is indeed strictly following its roadmap.
Features of the Tectonic Token
So, Tectonic is another crypto platform that is trying to capitalize on the DeFi hype. However, unlike most decentralized financial system-oriented projects, Tectonic offers some advantages in terms of network scalability and the ability to process a huge number of transactions per second. Users of Tectonic can join the ecosystem both as liquidity providers generating passive income and as borrowers, which are often traders looking to benefit from short-term trading. The platform is also open for regular users aiming to benefit from various cryptocurrencies without having to liquidate the original assets they own.
One of the important advantages of the Tectonic lending platform is over-collateralization. That is, borrowers can lock up more money than they intend to borrow, and this ensures that users who have received collateral will not run away and end up repaying their debts. The Tectonic platform uses a pledge ratio, expressed as a percentage available for borrowing given the value of the pledge. For example, if a token’s pledge ratio is 70%, then for every $100 blocked, a borrower can borrow $70. The pledge ratio can be changed for any token, and this is where the TONIC token comes into play. While Tectonic is initially a centralized platform run by the creators, it will gradually take control in the hands of the community. From this comes the core value of the TONIC token – providing voting power to the holders. With a maximum token stock of 500 trillion, users can buy and hold TONIC to take over the governance functions. The lion’s share of the platform’s tokens is distributed in the form of rewards, stakes and liquidity mining. While some of Tectonic’s tokens are harnessed by the crypto project’s founding team, the rest are used to improve the platform’s security and to create an ecosystem reserve.
Tectonic Token Release and Distribution
So, given such a huge stockpile of tokens, one should not expect the Tectonic token to be worth too much. It looks like a crypto project where investors will not benefit from the ever-increasing price of the token but from its intrinsic value, in particular the provision of voting rights within the platform. Launched on December 23, 2021, the Tectonic token was worth just $0.000004, which is well below one cent. Shortly after the launch, the token became available on the VVS Finance exchange, which ran a massive promotion rewarding engaged users with tokens. Notably, the team behind the project warned that the crypto price would be too volatile. And they were right, because just 6 days after the launch, the value of TONIC is only $0.0000009. So, let’s see how the token was distributed:
- 0.1% of the total number of tokens was issued for Tectonic airdrop, i.e., handing out coins to current and potential users mainly for promotional purposes.
- 23% of the tokens have been reserved for the team behind the Tectonic Crypto project. These tokens will be issued on a daily basis for the next 4 years from the launch.
- 13% of the tokens were transferred to the ecosystem reserve and will be used to develop the project. For example, some of the reserve tokens will be used to pay for consultancy fees, sponsor partner development projects, as well as to fund various initiatives of the Tectonic community.
- Most of the tokens, around 51%, will go to rewarding the community for participating in liquidity mining, stacking and mining on decentralized crypto platforms.
- The remaining coins (about 13% of the total issue) will be used to improve platform security, maintenance, auditing, ensuring execution of operations on the platform, upgrading infrastructure and building a liquidity reserve. These coins were unlocked after the launch.
The main event in the life cycle of the platform dates back to March 11, 2022, when the placement of Tectonic tokens took place. Since then, TONIC holders have been able to deposit tokens into the staking module to receive income in the form of a portion of the fees paid by borrowers. To increase the credibility of the loan platform, an insurance fund has been created, financed by a 10% contribution from the fees paid by the borrowers. All that makes the Tectonic platform a very viable crypto project.
Tectonic Crypto Price Prediction
Before we make a Tectonic coin price prediction, let’s take a look at how the token’s price has changed historically. Although it is quite a young crypto project, the price history can give some insight into how promising the coin is for investing in it. As already mentioned, the starting price of TONIC was only $0.000004 and dropped significantly during the first few days. Becoming the largest Cronos-based lending platform as of early 2022, the Tectonic has created a buzz in the cryptocurrency space. This contributed to TONIC’s rise to $0.000001. The next big success dates back to January 4, 2022, when the platform’s token was listed on the Crypto.com exchange. A little later in January, the creators of Tectonic announced a promotional event to give away tokens using VVS. However, that didn’t stop the token from dropping to its original price of $0.000004 a few days later.
However, after Crypto.com added the token to its Crypto Earn platform where users can earn up to 3% per year, the token price rose again. On February 8, 2022, the price of TONIC reached a previously unprecedented value of $0.0000019 amid the news that Cronos reached $2 billion in TVL and continued its rise. Since then, Tectonic has been heralded as the leading crypto project based on Cronos. However, another fall followed this success as the pledge factor dropped by 3% per day. As a result, by mid-March 2022, the price of TONIC was only $0.0000007 per token. However, the creators of the project have a trump up their sleeve in the form of a stacking system launched on March 11. Within this system, users receive payments in the form of a part of the commission paid by borrowers. The stacking mechanism increased the intrinsic value of the token and contributed to some increase in its price. At the end of March, the value of TONIC was $0.000001 again. However, due to the fall in the cryptocurrency market, the price dropped dramatically after a short period of time. At the time of writing, Tectonic is priced at just $0.0000001171 with a market cap of $10,626,132.
TONIC Price Forecasts
When making price forecasts, we should keep in mind that the cryptocurrency market remains highly volatile. Moreover, the market downturn in 2022 due to the Russian invasion of Ukraine and subsequent negative economic processes has had a significant impact on the value of TONIC despite the fact that we are dealing with a very promising crypto project. If you decide to invest in Tectonic or any other crypto project, do not rely solely on expert opinions. Do your own research, paying special attention to the technical documents. So, regarding Tectonic price prediction, here are some opinions expressed by experts in the crypto world:
- According to experts at PricePrediction.net, the price of the Tectonic token will rise to $0.000001 over the next three years and reach a value of $0.000006 by 2030, which is a very optimistic prediction.
- CryptoPredictions was more conservative in its forecast, simply saying that it could reach $0.000001 for the foreseeable future. Such a cautious forecast by the experts is easily explained by the unclear situation in the cryptocurrency market in 2022.
- According to DigitalCoinPrice’s forecast, the coin’s price will rise at a much slower pace, with a value of $0.00000021 in 2025.
While we are still seeing quite high demand for Tectonic’s token platform, the idea of building a superstructure platform on top of blockchains to allow them to interact with each other is not a new one. Today, there are already several other crypto projects pursuing the same goal as Tectonic. However, as one of DeFi’s leading platforms on Cronos, it is still a very promising project with high potential for further growth. The fact that the coin is currently stuck in a bearish trend may not make it the most attractive option for investment. However, the bearish trend has affected the entire cryptocurrency market to one degree or another. So, this is not the main factor to consider when forecasting the price of the Tectonic token.
F.A.Q. Tectonic Crypto Price Prediction 2023 – 2024
What is the current price of Tectonic and how does it compare to its average price over the past year?
Tectonic’s current price varies from its average price over the past year, reflecting the dynamic nature of the crypto market and Tectonic’s price movement within it.
How has Tonic’s price changed in the crypto market, and what is its highest and lowest recorded price?
Tonic’s price in the crypto market has experienced fluctuations, with its highest price showcasing peak market optimism, and its lowest price reflecting bearish market phases.
What is the Tectonic price prediction for 2025, and how does this compare to the forecast for 2030?
The Tectonic price prediction for 2025 indicates a certain price level, differing from the 2030 forecast which accounts for longer-term market trends and potential developments in the Tectonic market.
Is investing in Tonic considered a good investment decision considering its current price and future price predictions?
Whether Tonic is a good investment decision depends on individual risk tolerance and market perspective, considering its current price and future price predictions in the volatile crypto market.
According to current analysis, what price is Tectonic expected to reach by the end of 2023?
Market analysis suggests that by the end of 2023, Tectonic is expected to reach a specific price, influenced by recent market trends and Tectonic’s performance in the crypto exchange.
What are the predictions for the maximum and minimum price value of Tectonic in 2024?
Predictions for 2024 indicate a maximum and minimum price value for Tectonic, considering factors like market trends, price volatility, and overall sentiment in the crypto market.
How likely is it that Tonic could reach 1 cent in the near future, based on current market analysis?
The likelihood of Tonic reaching 1 cent is based on current market analysis, considering Tonic’s historical price, trading volume, and broader market conditions in the crypto space.
What does the Tectonic forecast suggest for its long-term price, particularly for the year 2050?
The Tectonic forecast for the year 2050 provides insights into its long-term price potential, factoring in projected market growth, technological advancements, and Tectonic’s role in the crypto market.
Are there any signs that the crypto market will influence a significant price movement in Tonic by the end of 2023?
Market analysts observe signs that the crypto market could influence a significant price movement in Tonic by the end of 2023, driven by market trends, investor sentiment, and global economic factors.
In making any investment decision, how should one interpret the Tectonic price prediction for 2030?
When making any investment decision, the Tectonic price prediction for 2030 should be interpreted as one of many indicators, considering market unpredictability, historical performance, and potential future market dynamics.
What is the current market price of Tonic coin and how does it compare to the average price of Tonic over the past few months?
The market price of Tonic coin currently shows a difference when compared to its average trading price over recent months, illustrating the coin’s price volatility in the crypto market.
How high is Tonic expected to reach in terms of maximum price value according to the latest price predictions for 2024?
According to the latest price predictions for 2024, Tonic is expected to reach a certain maximum price value, reflecting analysts’ optimism based on current market trends and price analysis.
What are the forecasts for Tectonic’s price for 2023 and how do they align with the Tectonic price prediction for 2025?
Forecasts for Tectonic’s price in 2023 indicate a specific market price, aligning in a certain way with the Tectonic price prediction for 2025, which takes into account longer-term market dynamics.
Considering the current trading price, is it a good time to buy Tectonic, and what does the tectonic price forecast suggest for its future price?
Whether it’s a good time to buy Tectonic depends on individual investment strategies and market analysis; the tectonic price forecast suggests a future price that could influence this decision.
Based on the tectonic price prediction for 2023 and tonic token price prediction, what are the expected price movements for these cryptocurrencies?
The tectonic price prediction for 2023 and tonic token price prediction indicate expected price movements, with forecasts considering factors like market trends, trading volume, and overall crypto market sentiment.