TrueFi price prediction: What is TrueFi (TRU)?

Can TrueFi stand out from the crypto lending crowd?

TrueFi                                 
TrueFi is a crypto loan protocol - Credit: Shutterstock
                                

Contents

TrueFi (TRU) is one of many cryptocurrency lending protocols. Let’s take a look at what it offers, and pull up some TrueFi price predictions, too.

TrueFi explained

In the world of blockchain and cryptocurrency, one of the most important concepts is that of decentralised finance, perhaps better known as DeFi. Ultimately, a DeFi transaction is a financial transaction that bypasses banks. Bitcoin, the daddy of all crypto coins, was set up in the wake of the global financial crisis of the late 2000s to allow people to get access to the services they needed without having to worry about conventional banks. 

A 2017 report from the World Bank said that there were 1.7 billion people who do not have a bank account, but two thirds of those without an account owned a mobile phone. Advocates of decentralized finance hope to reach these people, which will, it is hoped, promote financial inclusion.

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

One area where DeFi can provide an alternative to traditional financial services is in loans and credit. The idea is that if people can use crypto in the same way that they use fiat currencies, that will not only help people who otherwise might not have access to traditional financial services, but it will also allow cryptocurrency’s reach and utility to grow, which should, according to crypto enthusiasts, benefit everyone. 

TrueFi is one protocol that offers loans and credit.  What makes it a little different from other decentralised finance lending protocols is that, with TrueFi, the emphasis is not on the borrowers but on the lenders. The platform’s technical documentation says: “TrueFi allows lenders to earn returns on loaned cryptocurrencies while having full transparency on how the loaned capital is allocated. Vetted borrowers, meanwhile, can use TrueFi for rapid access to fixed-term, fixed-rate cryptocurrency loans.” The difference may be subtle, but it is there.

TrueFi allows people who want to serve as crypto lenders the opportunity to earn rewards by putting up the funds for people to borrow. Lenders can put their crypto into True DAO pools which, according to the whitepaper, have issued around $1.5bn in crypto loans to institutional borrowers since November 2020. The pools rely on three sorts of stakeholders to operate. First, there are lenders, who put up stablecoins into the pools. Then, there are stakers, who “act as part of the protocol's risk management system in return for TRU rewards and fees generated by the protocol.  TRU Stakers also vote on loan requests, signaling the creditworthiness of each loan request on TrueFi's credit prediction market.” Finally, there are borrowers, who have to be vetted as credit-worthy. Loans can be made in a range of stablecoins.

Every blockchain-based network needs its own native cryptocurrency, and TrueFi has its eponymous TrueFi token. This crypto, which is also known by its ticker handle, TRU, is designed to serve as a utility token, which means that it is used to pay for transactions on the network. As well as that, as we have already seen, it can be staked in return for rewards. 

While TRU is the main native token of the TrueFi network, the platform also has its own stablecoin, TrueUSD. It is important not to confuse the TrueFi token with Truebit, the native token of a system designed to allow people to use software off the blockchain on the blockchain, which shares the TRU ticker. Since TrueFi is based on the Ethereum blockchain, it is a token, rather than a coin. You will see references to such things as a TrueFi coin price prediction, but these are wrong. 

TrueFi is operated as a decentralised autonomous organisation, but is an offshoot of the DeFi company TrustToken, which was set up by the Stanford, California-based programmer Raphael Cosman in 2017. TrueFi itself was launched in November 2020, with the native token coming onto the open market the same month.

TrueFi price history

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

Let’s now cast our eyes over TRU’s price history. While past performance should never be taken as an indicator of future results, knowing how the token has behaved in the past can help give us some much-needed context when it comes to either interpreting a TrueFi price prediction or making one of our own.

When TrueFi first came out in November 2020, it was worth about $0.23. There was a drop to a little over $0.12 soon after, but it then rose, albeit with some peaks and troughs. Things really started to get going for the token in early 2021 when, with the market experiencing a notably bullish phase, it benefitted from more of an interest being taken in crypto, reaching highs of more than $0.55 in the middle of February. It spent much of the next few months over $0.40, until the Great Crypto Day Crash of 19 May 2021 sent the market down for the next few months, and TRU went down with it. In early August, the TRU token price, which had been operating below the $0.20 mark, shot up, boosted, at least in part, by news of updates to the system. By 12 August, it stood at an all-time high of $1.04. After that, though, the price fell by more than two thirds, and by the end of the year it stood at $0.3149.

So far, 2022 has been less positive, as TRU’s price has dropped over the course of the year so far. Russia’s invasion of Ukraine lead to a low of $0.1508 on 24 February. Although late March saw a bull run that culminated in a periodic high of $0.2892 on 31 March, China’s crypto ban the following month nipped that in the bud. In May, things got even worse, with the news of the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency leading TRU to drop to a low of $0.06714 on 12 May. Any recovery after that was, ultimately, fleeting and the news that the Celsius crypto lending platform had cancelled withdrawals confirmed crypto was in a bear market, with TrueFi sinking to an all-time low of $0.04854. Following that, though, the overall trend has been an upward one for TRU and, by 11 August 2022, it was worth about $0.0933. 

At that time, there were just under 549 million TRU in circulation out of a total supply of just over 1.44 billion. This gave the token a market capitalisation of about $51.2m, making it the 405th largest cryptocurrency by that metric. 

TrueFi price predictions

It’s time to take a look at some TrueFi price predictions. Before we do that, though, we will need to remind you that price forecasts, especially for a commodity as potentially volatile as a cryptocurrency, are very often wrong. You should also be aware that long-term crypto price predictions are often made using an algorithm, which means that they can change at any time.

CryptoPredictions.com has a TRU price prediction that says the token could close 2022 at around $0.115, before it falls back down to a little over $0.10 in August 2023. By August 2024, though, TrueFi could be back to a fraction of a cent over $0.11. The site goes on to make a TrueFi price prediction for 2025 that sees the token start the year at $0.12678 before it might hit $0.151 in August and close the year at $0.1645. In 2026 the forecast is for the token to be worth a little over $0.16 in August and to close the year at about $0.1707.

TechNewsLeader makes a TrueFi crypto price prediction that sees the token hit $0.13 in 2022, $0.19 in 2023 and $0.28 in 2024. By 2025, the site says, TRU could be trading at around $0.42, before possibly reaching $0.60 the following year and $0.85 the year after that. In 2028, the forecast is for TRU to break through the dollar barrier and trade at $1.24 before it reaches $1.77 at the end of the decade. The site goes on to make a TrueFi price prediction for 2030 that sees it worth around $2.50, with the token trading at $3.60 in 2031.

TradingBeasts’ TrueFi price prediction says that it could close this year at a little over $0.12 before dropping to trade at $0.1074 in August 2023. A year on from then, the site suggests that TRU could be worth $0.1216, before it trades at a potential $0.1642 12 months after that. By December 2025, the forecast price of TrueFi is a little over $0.1776.

Finally, Gov Capital is a lot more bearish when it comes to making its TrueFi price prediction for 2022. The site argues that, while the coin could rise to an average of $0.2040 on 2 September, it will be downhill from there. The suggestion is that, by 26 November 2022, the token’s price could have dropped down to a level so low as to not be worth measuring. That is not to say that it will become a deadcoin, though, as the site says that, by 12 August 2023, TRU could be worth a fraction of a cent under $0.61.

Final thoughts

TrueFi might focus on the lenders rather than the borrowers, but it is still one of many crypto lending platforms. It might be hard to say what else the token can do to stand out from an already crowded marketplace.

Linked to that is that, after the collapse of the Celsius crypto lending protocol, this particular field might well be something that investors will be wary of in the near future.

Finally, TRU has lost a rather significant amount of its value over the course of the past 12 months. As always with cryptocurrency, you will need to be careful if you want to invest in TrueFi. 

FAQs

How many TrueFi are there?

On 12 August 2022, there were 548,956,194.22 TRU in circulation out of a total supply of just over 1.44 billion. 

Is TrueFi a good investment?

Considering the large drop that TRU has suffered over the past year, there will be some people who might suggest that, if you want to buy in the dip, now might be a good time to invest in TRU. On the other hand, the token has been in a rather suboptimal place for some time now. You will have to do your own research before deciding whether or not to invest in TRU.

Will TrueFi go up?

There is a quite large gap between where TrueFi is now and where it has been in the past, so the potential is there. It is also worth noting that a lot of the forecasts are upbeat but, then again, forecasts are very often wrong. It is also incredibly important to remember that cryptocurrencies can be highly volatile, and prices can go down just as quickly as they can go up. 

Should I invest in TrueFi?

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

Further reading

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