Celo gained attention when it rose almost 20 percent in morning trading on Sep. 14 to $5.60. The altcoin has gained 130 percent in 2021. Before investing in the crypto, traders should be aware of several factors that could affect Celo's price prediction.
Celo, a programmable blockchain, ranks along with Cardano, Solana, Avalanche, and El Salvador-favored Algorand to compete with Ethereum in hosting DeFi apps. Celo is attempting to bridge the global financial divide with blockchain technology.
Why is Celo going up, and how high can it go?
Celo’s latest surge follows the launch of its Optics smart contracts feature. The feature will make it easier for projects running on Celo to connect to other blockchains for interoperability. The Optics feature goes a long way in making Celo a more useful blockchain for developers of DeFi apps.
Celo usually spikes following the addition of important features or an announcement about a strategic collaboration. The crypto soared to its all-time high above $10 in Aug. 2021 after Celo announced the launch of the DeFi for the People initiative. The token is now 50 percent below that peak.
Is Celo a good long-term investment?
If you’re seeking the next cryptocurrency to explode in the DeFi sector, Celo is worth a look. While Solana, Avalanche, and Cardano have risen more than 1,000 percent in 2021, Celo trails with a gain of just 130 percent. Therefore, Celo looks to have more upside left as investors continue to flock to DeFi.
The launch of the DeFi for the People program has also increased Celo’s appeal as a long-term investment. Under the program, a $100 million fund has been set up to educate people about DeFi. The program will also see some of the most successful DeFi projects on Ethereum come to Celo's blockchain.
As more projects join the Celo network, the Celo token's demand and value should increase. Furthermore, Celo’s capped supply may appeal to investors trying to avoid inflation.
Celo's price prediction
Amid the growing interest in DeFi products, it's possible for Celo to get back to its all-time high and double before the end of 2021. However, a major risk factor for Celo is the growing regulatory scrutiny of the DeFi sector. The SEC has taken a keen interest in DeFi projects, and that could cause many investors to reduce their exposure to tokens such as Celo.