Bounce Finance Governance Token price prediction: What is AUCTION?

Is it worth making a bid on AUCTION?

Bounce                                 
Bounce Finance Governance Token helps power crypto auctions - Credit: bounce.finance
                                

Contents

Bounce Finance aims to bring auctions to the world of crypto, but what is Bounce Finance Governance Token (AUCTION)? Let’s see what we can find out, and take a look at the Bounce Finance Governance Token, too.

Bounce Finance explained

One of the more notable internet developments over the last 20 years has been the increased popularity of auction sites. While eBay is the clear market leader, there have been other marketplaces with similar principles, meaning people can bid for items they want. Another key developments in the internet over the past 10 years or so has been the growth of blockchain technology, the rise of cryptocurrencies and the coming of Web 3.0. Now, what if the concept behind eBay was applied to cryptocurrency? What if, rather than buying or selling coins and tokens for a set price, people could bid on them, giving people the opportunity to find bargains and hold off when things got too expensive? Well, the Bounce Finance platform gives people an opportunity to do just that. 

Bounce was founded in 2020 and described itself as crypto’s equivalent to eBay, while an upgrade in 2021 saw it proclaim itself as the “Google of decentralised auctions”. The platform allows people to search for crypto auctions, as well as including a feature that would allow people to buy and sell tokens and coins at a fixed price. 

As the system’s whitepaper says: “Bounce is a decentralised auction platform, incorporating liquidity mining, decentralised governance and staking mechanisms. The first principle of Bounce is scarcity of resources, which creates a competitive swap environment. 

“The idea of ‘swap‘ originated from Uniswap, where infinite liquidity is provided for participants. While this is a great concept, Bounce focuses on the opposite scenario instead. Bounce provides a competitive environment, for a limited supply of tokens or other assets like NFTs.”

In other words, the items auctioned on Bounce Finance are characterised by a limited amount, as only a fixed maximum amount of tokens can go to auction.

Every blockchain-based platform seemingly needs to have its own native token, and Bounce has the Bounce Finance Governance Token, also known by its ticker name, AUCTION. This crypto, based on the Ethereum blockchain, allows people to vote on changes to the Bounce Finance platform, as well as being used to set up auction pools. People can also buy, sell, or trade it on exchanges.

In keeping with its commitment to decentralisation, Bounce Finance does not name its founders. That might be worth keeping in mind if you are someone who wants to invest in something that is transparent and accountable. 

Bounce Finance Governance Token price history

It’s now time to examine the AUCTION price history. Although past performance should never be taken as an indicator of future results, knowing what the token has done in the past can give us some much needed context if we want to either make or interpret a Bounce Finance Governance Token price prediction.

AUCTION first came onto the open market in late February 2021, just as the cryptocurrency market was enjoying a sustained bull run. Its early price was around $23 and, while there were some ups and downs initially, as is very common with newly-launched cryptos, it was able to surf the wave of growing consumer confidence and, on 12 April 2021, it reached an all-time high of $70.56. After that, though, the price fell down and AUCTION was unable to escape the market stagnation following the Great Crypto Day Crash of 19 May that year, with the price of the token reaching a low of $10.94 on 22 June.

By August, though, the market was back up, thanks in part to a growing interest in non-fungible tokens (NFTs), and AUCTION closed the month at $34. While September started well, with the token reaching a daily high of $40.49 on 4 September, it sank back down to close the month at $23.37. October saw things pick up, with it shooting to $63.30 on 21 October before closing at $36.21. November saw the market in general rise, boosted by Bitcoin reaching new heights, and there was a high of $43.33 on 9 November. After that, though, fears surrounding the Omicron variant of Covid-19 saw markets contract, and AUCTION closed the month at $29.41, before it dropped further to close the year at $24.44.

AUCTION price history
AUCTION price history - Credit: Currency.com

So far, 2022 has been a bad time for cryptocurrencies, especially when compared with the boom period that characterised the previous year. AUCTION has suffered, with the price dropping to a low of $11.70 on 24 January. While there was a little recovery from this, Russia’s invasion of Ukraine on 24 February saw the price of the token drop down to $10.92. Again, there were some stirrings above that level in March and, on 19 March, the price jumped by nearly 90% from an opening of $13.67 to an intraday high of $25.78. By the close of the following day, though, it was back down to $17.35, and it continued to drop, closing the month at $15.65. Although April initially looked optimistic, with the price rising to a high of $18.92 on 4 April, China’s crypto ban nixed any hopes of a significant recovery and it closed the month at $11.29. 

May was a very bad month for crypto, with the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency sending the market crashing down. AUCTION suffered some serious losses, reaching an all-time low of $3.74 on 12 May. After that, though, there was some comparative recovery and the Bounce Finance Governance Token was able to close the month at $7.28, a monthly loss of more than 35%, but a recovery of nearly 95% from the lows of 12 May.

If people were hoping that things would get better quickly, June’s cancellation of withdrawals from the Celsius lending platform destroyed their hopes, because that news confirmed a cryptocurrency bear market. The token fell down again, to a low of $3.95 on 18 June. After that, it looked like there would be a pretty quick recovery, with the market becoming volatile in an upward direction, reaching $6.09 on 20 June and $6.08 on 26 June.

By 30 June 2022, though, the token was worth about $5.25, less than half of what it was worth two months earlier, and there were 2,083,955.60 AUCTION in circulation, representing the total supply. This gave the token a market cap of just under $11m, making it the 703rd largest cryptocurrency by that metric.

Bounce Finance Governance Token price prediction 

With that all out of the way, let’s take a look at the Bounce Finance Governance Token price prediction. Keep in mind that price forecasts, especially for something as volatile as cryptocurrency, are very often wrong. We should also remind you that longer term crypto price predictions are often made using an algorithm, which means that they can change at a moment’s notice. 

First, DigitalCoinPrice has a Bounce Finance Governance Token crypto price prediction which says that AUCTION should get to $7.03 this year, $7.75 next year and $7.91 the year after that. In 2025, it should break through the $10 barrier to reach $10.69, but should drop to $9.42 the following year. In 2027, though, the token should come back up to $12.46, and should rise to $17.11 in 2028. AUCTION should close the decade at $22.06 before the site makes a Bounce Finance Governance Token price prediction for 2030 of $24.63. In 2031, the token should be worth $27.85.

Next, CoinArbitrageBot makes an AUCTION price prediction that sees the token reach a little under $16.21 in 2022 and just under $28.85 in 2023. In 2024, it should be worth $46.67, while the Bounce Finance Governance Token price prediction for 2025 is $75.52.

Meanwhile, CoinsKid has a Bounce Finance Governance Token price prediction for 2022 that sees it trade at $7.37 by the end of the year. In June 2023, the token should be worth $7.40, while a year from that it should have reached $8.64. In June 2025, AUCTION is predicted to come in at $10.03, while 12 months after that the price is forecast at $12.65, before it drops down slightly to $12.56 in October. 

Finally, WalletInvestor has a very bearish AUCTION price prediction, arguing that the token should drop to a mere $0.20025 by June 2023. 

Final thoughts

A few things to mention before we finish. First, the whole process that Bounce Finance supports is somewhat niche. While there are plenty of centralised and decentralised crypto exchanges, it is hard to tell just how much potential a crypto auction has for people to get interested. We will have to see if Bounce’s concept can take off and, if not, what else the platform can do to get more attention and grow its market.

Second, while anonymous founders are not uncommon in decentralised crypto platforms, it is the sort of thing that could, potentially, put off investors who like transparency when it comes to deciding what to invest in. In turn, this could quite possibly stop the token from growing as well as it potentially could.

Finally, while Bounce seems to be doing something a bit different with its decentralised crypto and NFT auctions, that is not to say that it is destined to be the market leader forever. Let’s not forget that NXT did a lot of the same things that Ethereum did long before Ethereum was even launched, but ETH is now the second largest cryptocurrency and NXT serves as a historical footnote. As ever with crypto, it makes sense to be cautious. 

FAQs

On 30 June 2022, there were 2,083,955.60 AUCTION in circulation, representing the total supply.

It can be argued, at least by proponents of buying during dips, that now might be a good time to invest in AUCTION. That said, some caution is needed. We have seen the price of AUCTION go down quite a bit over the last 12 months. Remember, cryptocurrencies can be highly volatile and prices can go down as well as up. You will need to do your own research and never invest more than you can afford to lose.

Supporters of buying during the dip might well tell you that cryptos like AUCTION, which has lost value over the last 12 months, are worth looking into. On the other hand, it has been in a bearish place for some time now. Regardless, you will need to remember that cryptocurrencies can be highly volatile and prices can go down as well as up. After carrying out your own research, remember to never invest funds that you cannot afford to lose.

This is a question that you will have to answer for yourself. Before you do so, you will have look into all the information you can find. Remember 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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