Alchemix price prediction: What is Alchemix (ALCX)?

Does Alchemix really have the crypto magic?

Alchemix                                 
Can Alchemix recover from recent losses? - Photo: Shutterstock
                                

Contents

What is Alchemix (ALCX)Alchemix aims to create something that it calls self-repaying loans. Let’s find kut more,t, and also take a look at Alchemix price predictions, too. 

Alchemix explained

In the world of cryptocurrency, one of the key principles is that of decentralised finance, perhaps better known as DeFi. This is, ultimately, the idea that gave birth to the whole massive, multi-blockchain, online super ecosystem that we can see today. 

The World Bank issued a report in 2017 which found there were 1.7 billion people who did not have a bank account. However, around two thirds of the bankless own a mobile phone. Advocates of decentralised finance hope to reach these people, which will, it is hoped, promote financial inclusion.

The aim is for a fairer version of traditional financial services, accessible online. Decentralised finance has the goal of providing a modern, fairer alternative to banking services that can be accessed over the internet. These tools are often available in the form of decentralised apps, or DApps for short.

There are also theoretical benefits for tbose making international financial transactions, too. The high commission fees and remittance service charges, and the cost of currency conversion, weigh particularly heavily on the poor. The idea is that with a cheaper alternative, remittance charges and commission fees will drop, and mainstream currency conversion will have to get cheaper to be more competitive.

One of the other things that DeFi aims to do that traditional banks also do is offer people loans. This particular subsection of the DeFi universe has grown over recent times, and Alchemix is one of a range of operators who offer decentralised loans in the form of cryptocurrency.

The way that the system works is as follows: people deposit the DAI stablecoin, which then is converted into another stablecoin, called ALUSD. For every DAI deposited, the customer gets one ALUSD back. In turn, this DAI is used as collateral against the loan. What makes Alchemix a little different is that the DAI is then rerouted into the Yearn platform, which is a system apparently designed to automate the process of finding the marketplaces with the best yield across DeFi networks.

The ultimate idea is, according to the Alchemix website, to allow people to have what it describes as a self-repaying loan. If Yearn can find enough interest on DAI, then that means, at least in theory, that the loan should pay itself back. There is, of course, a lot of theory in here and there is always the possibility that a borrower can lose their money.

Once the person has the loan of ALUSD, there are a number of things they can do with it. For instance, they can redeem your they for DAI via a process called the transmuter, or they can stake it for rewards.

As a blockchain-based finance platform, Alchemix should, of course, have its own native token, and that comes in the form of the Alchemix crypto token, also known as ALCX. This is used for governance purposes, meaning that people who hold the crypto are able to take part in votes on the future of the Alchemix network. 

Alchemix was founded by a group of pseudonymous developers, led by someone rejoicing in the name, or more properly the nom de plume, of Scoopy Trooples. It first went live in 2021. ALCX is based on the Ethereum blockchain, which means that it is a token, rather than a coin. While you might see references to such things as the Alchemix coin price prediction, strictly speaking, those are not correct.

Alchemix price history

Now let’s cast our eyes over ALCX’s price history. While past performance should never be taken as any sort of indicator of future results, knowing what the token has done previously can help give us some much needed context when it comes to either interpreting an Alchemix price prediction or else making one of our own. 

When ALCX first came onto the open market in late February 2021, it was worth about $600. At this time, the cryptocurrency market was going through a notable sustained, boom , as Covid stimulus cheques found their way from American investors into the crypto sphere. The ALCX token was able to cash in on the growing market and its price shot up quickly, topping $1,000 in early March. There were later peaks and troughs, but the crypto managed to stay above its launch price for some time and, on 11 May, with the price already well over $1,500, it spiked and reached a freakish record price of $11,060.63.

After that, tbhe token settled down, but it was still trading in the four figure range when disaster struck. The Great Crypto Day Crash of 19 May 2021 saw the market take a hit and, on 21 May, ALCX traded at above $1,000 for the last time to date. The summer saw both the Alchemix token and the crypto market in the doldrums, with ALCX dropping below $250 in the middle of July.

By August, the market picked up, with a growing interest in non-fungible tokens (NFTs) helping crypto recover, but Alchemix pretty much spent the entire month hovering between $350 and $450. The autumn saw a down turn, although things picked up in early November, as Bitcoin reached record prices and ALCX hit a periodic high of $594.17, before things went down before another spike to $609.68 on 16 November. After that, though, things cooled down as the market contracted in the wake of fears about the omicron variant of Covid-19, and the token closed the year at $274.69.

ALCX is one of many tokens which has lost value over the course of 2022 so far. While there was an initial run to a high of $414.87 on 6 January, after Russia invaded Ukraine and ALCX dropped to $109.59. On 10 March, the token dropped below $100 for the first time and, while there was some recovery to three figures in late March and early April, China’s crypto ban rather slammed the lid on hopes of short-term recovery, and it closed April at $63.78. May was even worse, with the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency causing ALCX to sink to a low of $28.25 on 12 May. 

The cancellation of withdrawals on the Celsius crypto lending platform confirmed the bear market and, with Alchemix also a crypto lending project, investors seemed ready to abandon it, as it dropped to an all-time low of $16.94 on 18 June. Things started to look like they might get better in the middle of July, with the token starting 15 July at $23.24 and hitting $27.30 by lunchtime, a rise of more than 17% in a little over 12 hours or so. At that time, there were a little under 1.35 million ALCX in circulation out of a total supply of around 1.5 million. This gave the token a market cap of about $36.8m, making it the 434th largest crypto by that metric.

Alchemix price prediction

It’s now time to take a look at the Alchemix price prediction. It is very important to understand that price forecasts, especially when they concern something as inherently volatile as cryptocurrency, are very often wrong. Long-term price forecasts are often made using an algorithm, which can change at a moment’s notice. 

CoinArbitrageBot is, as is not uncommon for the site, supremely bullish when it comes to making an Alchemix price prediction for 2022. It says that the token can go up something like nine times this year to reach $256.81 before it hits $457.07 in 2023 and a fraction of a cent under $739.54 in 2024. By 2025, ALCX should have smashed through the $1,000 barrier to trade at $1,196.57, the site predicts. Whether or not you choose to take this sort of forecast with a pinch of salt does depend on whether you can believe that a crypto can rise by something like 800% in the course of around five and a half months at a time when the cryptocurrency market is a bear one. 

CryptoPredictions.com is still bullish, but perhaps a bit more cautious in its Alchemix crypto price prediction. This site suggests that ALCX should close 2022 at a fraction of a cent under $43.88, while it should get to about $52.90 in July 2023. A year after that, the token should be trading at a tenth of a cent below $63.93, it believes. The site goes on to make an Alchemix price prediction for 2025 that sees it start the year at $68.36, before reaching somewhere between $72.21 and $72.22 in July and closing the year at around $75.15. If we move to July 2026, ALCX should be roughly halfway between $78.82 and $78.83, before it closes the year operating at around $81.23, CryptoPredictions says. 

PricePrediction.net has an ALCX price prediction which says the token should get to $37.45 this year, $54.42 next year and $80.61 the year after that. By 2025, Alchemix should have broken through the $100 barrier to trade at $110.50, it claims, before it reaches $162.10 in 2026 and $240.13 in 2027. In 2028, the token should be worth $342.21 before it closes the decade at $497.24, the site believes. It makes an Alchemix price prediction for 2030 of $729.59 before breaking past $1,000 the following year, with a 2031 forecast of $1,039.73.

Finally, WalletInvestor is about as bearish as CoinArbitrageBot is bearish. The site says that, by July 2023, ALCX will have lost about 90% of its current value to trade at a mere $2.96.

Final thoughts

ALCX is a crypto lending platform and, with the collapse of Celsius still fresh in people’s minds, there may be some understandable caution when it comes to investors wanting to put their money in it.

Second, while there is nothing wrong in and of itself with a crypto’s founders using pseudonyms – it does not seem to have done Bitcoin any harm – there may be some people who might not be entirely enthusiastic about the prospect of their cash going into something founded by someone called Scoopy Trooples.

Finally, a smart investors will learn to treat some things with a pinch of salt. Something they might be understandable cynical about might be a crypto network that promises to let people pay off loans “automagically”. As ever with crypto, it makes sense to be careful if you want to invest in ALCX. 

FAQs

How many Alchemix are there?

On 15 July 2022, there were a little under 1.35 million ALCX in circulation out of a total supply of around 1.5 million.

Is Alchemix a good investment?

It might be. A lot will depend on whether the token can maintain upward growth, as well as how fast it can rise and how far it can do so. Keep in mind that we are in a crypto bear market so you will have to do your own research before you invest in ALCX.

Will Alchemix go up?

It could do. That said, cryptocurrency is nothing if not incredibly volatile and prices can go down just as easily, just as often, and just as far, as they can go up. 

Should I invest in Alchemix?

You will have to answer this question for yourself. Before you do so, you will have to do your own research, remember that prices can go down as well as up, and never invest more money than you can afford to lose. 

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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