The blockchain space has witnessed the development of new concepts and great projects lately. NFTs, DAOs, Metaverse are some of them. However, the crypto ecosystem is constantly developing and Rebase is one of them.
Rebase tokens are a brand new concept that has a lot of potentials to grow. In this article, you will discover why you need to pay attention to it.
What is a Rebase Token?
A rebase token is a kind of asset that automatically regulates its circulating supply in reaction to crypto price fluctuations.
This kind of token is similar to stablecoins as they both have fixed price marks. However, they are different in their supply. In other words, while other tokens are susceptible to crypto price volatility, rebase tokens change token supply to prevent that.
❔What is a rebase?
This change to the total token supply is known as a rebase. With respect to the total supply, the proportion of tokens each holder has will stay the same. But the # of tokens each holder has will either increase or decrease based on the rebase.
— Brandon Hong (@brandank_cr) September 29, 2021
Through its unique mechanism called rebasing, tokens circulating supply are increased or reduced due to price changes.
Although it might not be as popular as other projects in the blockchain space such as NFTs, CBDCs, among others Rebate token is however recording massive adoption. The project is growing remarkably as it seems to have caught the interest of top individuals in the crypto space.
Potential Risk of Rebase Tokens
The future of these kinds of tokens and how volatile they can get is a source of concern for investors. Essentially, Rebase tokens are highly risky investments and investors should have a proper understanding of the project before investing.
Therefore, due to its change in the amount of token supply, the price cannot be easily predicted. Invariably, investors could register loss after the rebase happens. While the blockchain initiative is poised to remain, it is important to mention that is difficult to invest in this kind of token.
What is the risk for you as individual holder ?
a REBASE token can change the number of tokens that YOU have in YOUR private blockchain wallet.
How ? If price of token increase, the number of tokens you own is reduced automatically by the smartcontract of the REBASE token
— FREEdom coin 🆓(official account by Benn) (@THE_FREE_COIN) December 8, 2021
Current Top 3 Rebase Token
While Rebase tokens can immensely increase or decrease your investment, they are going significant traction in the blockchain space. According to CoinGecko, nowadays, the marketcap of rebase tokens is $5 billion approx. Let’s take a look at the current three largest Rebase digital assets according to Coingecko.
- Wonderland (TIME)
Wonderland is a DeFi platform that gathers decentralized financial tools to grow your wealth. Also, it lets you stake and earns compounding interests.
TIME is the native token of Wonderland, which has support from several digital assets including MIM, TIME-AVAX LP token, among others. It is the first decentralized reserve currency protocol on the Avalanche Network.
Congrat's @danielesesta, your team and the wonderful community.
Looking forward to whats next 🎩🐸 🧙🏻♂️ pic.twitter.com/oLpMxqvo5j
— Farid Rached 🔺 (@FaridRached) October 28, 2021
At the time of writing this artic, TIME is down by 0.6% on the hour and is currently trading at $2,292.27. Also, TIME has a market cap of $1,9 billion with a 24-hour trading volume of $54,5 million.
- Olympus (OHM)
Created by an anonymous developer named Zeus, Olympus aims to address the cryptocurrency market’s over-reliance on fiat-backed stablecoins. OHM is pegged to DAI tokens in a 1:1 ratio.
The price of $OHM, its native token, is currently down by 30.3% in the last seven days and is currently trading around $213.46. Also, OHM has a market cap of $1,7 billion with a 24-hour trading volume of $51.3 million. It has a circulating supply of 8.17 million OHM coins and a total supply of 9.04 million. Sushiswap is currently the most active exchange.
- Redacted Cartel (BTRFLY)
Redacted Cartel is a protocol that utilizes POL mechanics of OlympusDAO to secure liquidity from the Curve network.
Its native token is called $BTRFLY, and at the time of publication of this article, it was trading at $2,815 with a 24-hour trading volume of $35,4 million and a marketcap of $74.9 million. It has a circulating supply of 200,000 tokens and a total supply of 205,000 tokens.
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