Acala price prediction: DeFI platform surges

Acala, a DeFI project on Polkadot, gained 30% in the 30 days leading up to 14 April

Photo of a man's hands holding a phone with the ACA logo on it                                 
Acala is ranked 119th by market cap according to CoinMarketCap – Photo: Shutterstock


Acala, built on the Polkadot blockchain, has performed well in recent weeks, despite significant volatility since its launch in January 2022. 

Polkadot has increasingly become a popular network for developers to build DApps on. With lower fees and greater scalability capabilities than Ethereum, Polkadot has quickly emerged as one of the major blockchain platforms. 

Unlike Ethereum which only allows DApps to develop tokens within the bounds of the Ethereum blockchain, Polkadot enables developers to create their own parallel blockchains, also known as parachains. 

Acala, built as a Polkadot parachain, has two primary offerings. The first is aUSD, a decentralized, multi-collateral, crypto-backed stablecoin, while the second is a decentralized exchange. 

Acala is a parachain which developers can build on but it is also an  application layer which offers a range of financial products. Acala, according to CoinGecko, managed to gain 30% in the 30 days leading up to 14 April and 13% in the 14 days leading up to the same period. 

What is the latest Acala price prediction like right now? 

Before looking at ACA forecasts, let’s do a quick overview of the ecosystem.

What is Acala (ACA)?

Acala’s website describes itself as is a “a decentralized finance network powering the aUSD ecosystem… a layer-1 smart contract platform that’s scalable, Ethereum-compatible, and optimized for DeFi.” With the Acala EVM+, the website says: “Acala lets developers leverage the aUSD ecosystem while enjoying the best of Ethereum and the full power of Substrate.”

Acala has a number of features which are meant to differentiate it from competitors, including what it says is an improved user experience, an improved experience for developers, transaction fees payable with virtually any token and micro gas fees. 

The aUSD is a very important feature of the Acala protocol. Acala says: “aUSD is the built-in programmable primitive of the Acala network. aUSD is the Polkadot-native decentralized stablecoin backed by DOT, DOT derivatives and cross-chain assets like BTC or ETH.”

Acala Whitepaper 

The Acala whitepaper describes the mission of ACA, the Acala cross-blockchain stablecoin as being to “create a sound, stable currency for low cost, borderless value transfer for all blockchains that are connected in a network”, as well as “leverage Polkadot’s shared security mechanism, to have the highest security on day one.” 

ACA token 

ACA is the utility token of Acala. It has a variety of functions, including as a currency with which users can pay micro gas fees, as a means by which to incentivise network nodes and as a governance token. Developing teams can also “deploy new substrate pallets on the Acala blockchain by staking ACA”, according to the Acala website

With a fixed and deflationary supply model, the ACA token has a maximum supply of one billion and a circulating supply of just under 372 million tokens. 

Who founded Acala?

Acala was co-founded by Bette Chen, Ruitao Su, Bryan Chen and a presumably pseudonymous individual named OxThreeBody. 

Betty Chen gained a BA in engineering at the University of Auckland before studying for an MBA at University of Otago and Duke University. 

She has worked in a diverse range of capacities, from software engineer for First Data Corporation in New Zealand to project manager at SAP in China. She worked extensively as a product manager for a range of companies before co-founding Flowingo, a social enterprise start-up. She subsequently co-founder Laminar, a finance platform based in Auckland. 

Su, CEO of Acala, achieved a bachelor of commerce degree at the University of Auckland. He subsequently founded Less Code Limited, a software development studio as well as Laminar alongside Bette. He is also the CEO of Laminar.

Bryan Chen, based in Auckland, is another University of Auckland graduate, having gained a decree in engineering. He went on to be a software developer and software engineer at a variety of companies including Kami incorporated and Moxion. He worked as CTO at Laminar as well as product architect at Centrality.  

How does this information impact Acala price predictions? Let’s first do a quick overview of the performance of the ACA token. 

Will the surge continue? 

The ACA token fell immediately after launch from a high of $3.10 on 25 January to a low of $1.22 by 3 February, according to CoinMarketCap

The token subsequently rose tof $1.95 by 10 February before dipping to $1.41 on 14 February. The ACA price spiked the following day, hitting $1.66, before tumbling back to $0.8277 by 24 February. It then went through a rollercoaster ride, rising by 2 March to $1.44, dropping by 7 March to $1.03, up to $1.36 by 24 March, and down by 27 March to $1.15.

The token subsequently surged, hitting $2.05 by 4 April. The ACA price has since fallen however, with the price standing at $1.51 as of 14 April 2022. 

The current market cap of the ecosystem is just over $557m as of 14 April 2022. 

How does this information impact Acala price predictions? 

Acala price prediction: what’s next for ACA? 

Because of the inherent volatility of the crypto market as well as the many unknowns which could impact future prices of coins, it is vital to remember that while price forecasts are important when it comes to attempting to work out whether a crypto is a good proposition, they can often be wrong. 

Gov.Capital in a very pessimistic forecast, thinks Acala could go down to $0.467 in a year’s time.  

DigitalCoinPrice, in a bullish forecast, thinks the Acala price prediction for 2022 could average at $1.96. The platform thinks the ACA price prediction for 2023 could be $2.21. The website’s Acala price prediction for 2025 stands at $2.80, while its Acala price prediction for 2030 is $6.85. 

Price Prediction thinks the token will average $1.52 over 2022, before rising to an average price of $4.57 by 2025. The platform’s Acala price prediction for 2030 stands at $29.58. 

Wallet Investor, in a bearish forecast, thinks the token could go down to $0.484 in a year’s time.


How many Acala are there?

The ACA token has a maximum supply of 1 billion and a circulating supply of 371,777,051 ACA tokens. 

Is Acala a good investment?

Potentially. The protocol has a solid team behind it and a range of innovative technological features which could set it apart from competitors; however it remains to be seen whether it gains enough market traction to become one of the frontrunners in the DeFi scene. 

It is important to always keep in mind that crypto coins are highly volatile assets and that analysts’ forecasts can frequently be wrong.  

Will Acala go up?

Potentially. While some experts think the token will go up, others predict it could go down.

Always remember, crypto is highly volatile, and gains are generally followed by losses. Never invest any money you cannot afford to lose.

Should I invest in Acala?

Investing is a highly personal endeavour and very dependent on your individual investment goals. Remember to do research and keep up-to-date on any developments in the Acala ecoystem. 

Further reading

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