At 50% Below Its Peak, Is Celo a Good Buy?

If you’ve been seeking the next cryptocurrency to explode, Celo might have caught your attention. The altcoin surged to an all-time high above $10 but then pulled back to about $6. Where does Celo's price prediction place the crypto by 2025?

Many investors have become rich from cryptocurrencies, with Bitcoin boasting lifetime returns of 80,000,000 percent. Ethereum and Dogecoin have also delivered impressive returns for investors.

Celo, an Ethereum-type blockchain, is used by developers to build and run blockchain apps. It's becoming popular with DeFi app developers. Celo’s founding team comprises people from Google, Visa, The World Bank, The Bill & Melinda Gates Foundation, and Harvard University.

The main focus for Celo is expanding global financial inclusion to presently unbanked people. It aims to achieve this by partnering with developers to make DeFi products easily accessible on smartphones.

Although Celo has pulled back about 50 percent from its $10 all-time high reached on Aug. 30, it still boasts gains of more than 160 percent in 2021. The crypto hit its peak after Celo announced its DeFi for the People initiative. The token briefly fell in early trading on Sep. 1 as investors booked profit after the surge.

The move to take profits after a surge is common in cryptocurrencies. Some investors may take advantage of the ensuing pullback to accumulate the cheaper crypto.

Celo’s rebound also comes after the project announced an event for Sep. 2 that will focus on understanding stablecoins. Aiming to become a platform for creating and hosting stablecoins, Celo already has its own stablecoin, Celo Dollar (CUSD).

Investors who went long on Bitcoin and Ethereum have every reason to be happy. Although Bitcoin has pulled back from its peak, a $1,000 investment during the flagship crypto’s early years would be worth more than $60 million now. Ethereum's lifetime returns stand at more than 100,000 percent.

Celo’s prospects have brightened with the launch of the DeFi for the People program. The initiative will see many top Ethereum DeFi projects built on Celo's platform, including Aave, Graph, PoolTogether, and Chainlink.

If you’re looking for the next Ethereum, Celo may be a strong candidate to consider. With a fixed supply, it might appeal to investors wanting to steer clear of inflation. There are about 300 million Celo coins circulating presently, and the maximum supply is 1 billion.

Cryptocurrencies can be volatile, so Celo could very well explode again, tripling or quadrupling before the end of 2021. We can also use Celo’s past performance to gauge its outlook. The crypto’s gains in 2021 have averaged 20 percent per month. Assuming conservative monthly growth of just 5 percent, Celo could reach $80 by 2025.