Stablecoins and their use in Decentralized Finance (DeFi) have played a key role in the 2021 cryptocurrency bull market, as they enable investors to participate in the ever-growing number of protocols that high-yield staking pools offer and facilitate the transaction process without the need to simplify the use of a central exchange.
One project that has seen significant adoption thanks to its focus on creating a truly decentralized ecosystem and asset-backed stablecoin is the Abracadabra.money DeFi protocol and its native SPELL token.
Data from Cointelegraph Markets Pro and TradingView show that after hitting a low of $ 0.0114 on October 15, the price of SPELL rose 178.55% to hit a new record high of $ 0.035 on November 1 when its 24-hour trading volume rose to $ 109.82 million.
Three reasons SPELL is attracting the attention of DeFi users is the growth of Magic Internet Money (MIM) as a fully decentralized, cross-chain-enabled stablecoin, numerous cross-chain integrations that extend the reach of MIM and SPELL have expanded across the ecosystem and have expanded the governance and tokenomics structure of tokens.
Decentralized stablecoin growth
One of the biggest factors that is attracting the attention of active DeFi users is Abracadabra’s native Magic Internet Money Stablecoin, which is fully collateralized and minted by depositing interest-bearing assets on the DeFi protocol.
The growing popularity and acceptance of MIM can be seen in the rising total value of abracadabra, which hit a record $ 4.15 billion on November 1, according to Defi Llama.
MIM’s circulating supply, which, according to CoinMarketCap, is at $ 1.933 billion, has also grown steadily. The recent expansion is due in large part to the expansion of assets that can be pledged to Mint MIM as collateral, which includes now popular tokens like Shiba Inu (SHIB), FTX Token (FTT), Wrapped Olympus (OHM) and Fantom. belong (FTM).
Cross-chain integrations extend the reach of SPELL
A second reason investors are taking a closer look at SPELL is the expanding ecosystem that recently added cross-chain support for several blockchain networks, including Fantom and the Binance Smart Chain (BSC).
BSC is the latest addition to the Abracadabra ecosystem after the community voted to support the network in a poll that closed on October 30th.
A new governance proposal should decide whether we should provide https://t.co/gHWEQJMoOc on #BSC!
The voting takes 2 days!
Make sure to vote here https://t.co/9QhH8kAaz8 pic.twitter.com/V47hDgKhI6
– ♂️ (@MIM_Spell) October 27, 2021
Other blockchain protocols currently supported by Abracadabra are Ethereum, Arbitrum, and Avalanche, and the platform also benefits from several cross-protocol partnerships, including integrations with Convex Finance, Yearn.finance, Curve Finance, and SushiSwap.
Related: Magic Internet Money is racing over $ 1 billion and targeting MakerDao
Cheap tokenomics and a decreasing circulating supply
Another factor that has caught the attention of DeFi investors is SPELL’s tokenomics structure, which includes governance votes on emissions to control inflation.
The team behind SPELL regularly monitors the emissions schedule in the various DeFi pools in its ecosystem to ensure that new tokens are minted and used in the most beneficial way for the protocol and holders.
Due to the increasing acceptance and the rising price, a large number of tokens that were originally intended to be minted are no longer required. As a result, the team decided to cut the emissions plan by 20% from November 1st. This made 8.7 billion SPELL. effectively removes tokens from current circulation.
♂️! @ 0xM3rlin has cast the spell “Incendio”!
$ 8.7 billion MAGIC burned!
Read more about the approved proposal
– ♂️ (@MIM_Spell) November 1, 2021
Going forward, the outlook for the project remains optimistic and the team also plans to further integrate SPELL and MIM into the Fantom ecosystem, as well as offering new staking opportunities in Arbitrum and Avalanche.
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