Bonfida price prediction: Large price swing for the DeFi token
FIDA has been stuck in a bearish trend, and has fallen by 99% from its November 2021 high
While the underlying technology is the basis of any innovation in the crypto world, its user interface is equally or potentially even more important. An accessible, easy to navigate platform can be the difference between a thriving userbase and a failed project.
Bonfida was created to enhance the experience when using Serum, a decentralised exchange. After seeing large demand, it expanded into other products. But the depreciating trend to the FIDA coin has spelled trouble for the platform.
What is Bonfida?
Back in September 2020, Bonfida was originally launched to bridge the gap between investors and the Solana-based Serum exchange. Bonfida’s role was to create an accessible user interface for the DEX.
“We knew our domain expertise was in creating a seamless front end experience, combined with back end API’s and on-chain analytics,” states the platform’s whitepaper. “This presented the perfect opportunity to be an early participant in an ecosystem we believe will grow to power large, real-world applications in a decentralised and composable way.”
Bonfida was met with “undeniable demand” and decided to launch more products, including its own FIDA token. The other dApps associated with the brand are a naming service for Solana wallets, a messaging platform titled Jabber, and a trading bot builder.
David Ratiney is the founder behind this Solana dApp ecosystem. He has a background in education, having graduated from the University of Cambridge with a master’s degree in engineering in 2020. His research focused on machine learning.
The FIDA token
FIDA coin is the ecosystem’s native utility and governance token, and uses Solana’s SPL token standard. Bonfida describes the token’s governance features as “limited” in the whitepaper. “Some parameters such as product fees may be changed through a governance vote of FIDA tokens,” it says.
However, the token does have some degree of utility. It can be staked to earn a portion of the platform’s buyback scheme. Stakers will also gain access to “rare Solible markets” and advanced analytics.
The other use case for FIDA is the platform’s trading bots. Users pay for a bot to follow a certain set of rules. Half of this payment goes to the designer of the rules, while the other half is burned.
A volatile price history
FIDA launched on 23 December 2020 at $0.5677, according to CoinMarketCap, and was immediately welcomed by a bullish trend. It climbed throughout the first half of 2021, peaking at $3.62 on 18 May 2021.
This came as Bonfida hosted Mercurial Finance’s venture capital (VC) pools. A blog post said: “The idea is to let anybody have the ability to be a venture capitalist and take part in the early rounds of a project’s fundraising process.”
A bot trading competition also launched that month, with registration going live on 17 May 2021. The ecosystem collaborated with Serum to give participants a prize pool of $70,000.
After a period of consolidation, the FIDA coin price started rallying again. It started on 26 August when a perpetual contracts trading competition was announced. On 4 September, its trading volume surpassed the $70,000 mark. A week later, FIDA peaked at $8.26.
The token soon climbed to its all-time high of $59.61 on 3 November 2021. This followed its on-chain messaging app going live.
But the celebrations did not last long, and the price soon plummeted. It dropped below $5 by the end of the year and was fluctuating around the $2 mark at the beginning of 2022. A market-wide crypto crash exacerbated the depreciating trend, and FIDA stooped to its all-time low of $0.28 on 18 June 2022.
Recently, the Bonfida token has been showing signs of a rally. After selling out its NFT collection in two hours, FIDA is up 16% in a recent seven-day period and, as of 1 July, is trading at $0.39.
Bonfida price prediction
There is a range of forecasts when it comes to a FIDA price prediction.
CaptainAltCoin thinks that FIDA will fluctuate below the $1 mark for the next five years. The site’s Bonfida price prediction for 2022 says it will drop to $0.31 by December. However, it said: “Our forecasting model sees Bonfida reaching $1.79 in 2030.”
PricePrediction.net thinks it will surpass $1 in the next two years, and climb to $2.12 in 2025. Its Bonfida price prediction for 2030 is an optimistic value of $14.29.
TechNewsLeader boldly forecasts FIDA to reach $1.03 in a year’s time. Its Bonfida price prediction for 2025 said a maximum price of $2.07 is expected. By 2031, the DeFi token is thought to come close to $20.
Finally, DigitalCoinPrice only anticipates a slow and steady climb for Bonfida. It is thought to average out at $0.53 this year and climb above $1 in 2028. Its Bonfida token price prediction suggests it will surpass $2 next decade.
Bonfida is creating an accessible user interface for Serum, a Solana-based decentralised exchange (DEX).
Its other products include a messaging app, wallet naming service and trading bot builder.
Maybe. TechNewsLeader thinks FIDA can come close to $20 in 2031, whereas DigitalCoinPrice suggests it will only surpass $2 by that point.
FIDA has proved to be volatile with its dramatic price swings, so investors should never purchase more than they can afford to lose.
There is a circulating supply of 44.7 million FIDA, with a maximum supply of one billion FIDA.
It depends. FIDA can be used to create trading bots, or staked for rewards and exclusive features. But the token has been depreciating since its high in November 2021, so investors should conduct thorough due diligence first.
While FIDA is currently not available on Currency.com, there are a number of different markets that list the DeFi token. These include Coinbase, Binance, Bybit and FTX.