What Does TrueFi's (TRU) Price Prediction Tell Us?

TrueFi (TRU) has dropped about 20 percent in the past seven days, and more than 10 percent in the past 24 hours. It's currently at around $0.55. Why is TRU falling, and will it recover? What's TrueFi's (TRU) price prediction?

The DeFi space is booming. Shark Tank’s Kevin O'Leary is even predicting that DeFi products could eradicate traditional financial intermediaries in a few years. Amid the DeFi explosion, there are plenty of opportunities for investors, but it's key they know what they’re investing in.

TrueFi, a blockchain-based loans platform, provides unsecured loans to borrowers with good credit and generates a stable yield for lending investors. As the platform’s native cryptocurrency, the TRU token is used for governance and staking.

TRU hit a new all-time high of $1.04 following its Coinbase listing but has since pulled back by 45 percent. The selling may be attributed to investors taking profit after the recent spike and waiting to buy back in the dip.

TRU joined Coinbase alongside Axie Infinity (AXS), Wrapped Luna (WLUNA), Request (REQ), and Quickswap (QUICK). As the largest crypto exchange in the U.S., Coinbase brings significant investor exposure to TRU. Moreover, the crypto stands to benefit from TrueFi’s partnerships with Binance, SushiSwap, and Chainlink.

Similar to Bitcoin, Ripple (XRP), and Clover Finance, TrueFi has a maximum supply. Some 140 million TRU tokens are presently circulating, and the supply is capped at 1.5 billion. The crypto’s fixed supply can reduce inflation risk for investors.

Bitcoin and Ethereum have delivered blockbuster returns for investors over the long term. If you like the future of DeFi products, which are disrupting the traditional financial model, TRU crypto is definitely worth a look.

TrueFi is among the fastest-growing blockchain lending platforms. It has made $200 million in loans since Nov. 2020 and delivered $1.7 million in yield to lenders. TrueFi aims to grow its loan volume to $1 billion before 2022.

The project recently raised $12.5 million from a group of investors that included BlockTower Capital, Andreessen Horowitz, and Alameda Research. It plans to use the money to expand into new markets and broaden its offerings. TrueFi uses blockchain-based credit scores to make unsecured loan decisions. There have been no defaults so far. The project targets the $11 trillion unsecured lending industry.

Over the past year, TRU’s monthly gains have averaged 30 percent. Considering cryptocurrencies' volatility, TRU could hit another milestone soon. Assuming a consistent gain of just 5 percent per month, TRU could reach $7 by 2025.

If you like the outlook for DeFi and TRU, you may want to grab the token at its lower price. You can buy TRU with the U.S. dollar on Coinbase, HitBTC, FTX, and 1Inch. Alternatively, you can convert Bitcoin into TRU on Binance. The crypto’s broad exchange support makes it easily accessible and highly liquid.