Mo Dong and Junda Liu launch mainnet version of cBridge; another step towards a large-scale secure, private DeFi ecosystem future. Overall, price has continued to fall and is expected to rebound in 2022 and beyond.
The CELR coin is a native, ERC20-compatible token of the Celer Network. It was born from a layer-2 scaling solution that offers off-chain transactions handling.
Founded in 2014 by Mo Dong and Junda Liu, the Celer Network aims to create a future where decentralised ecosystems can perform secure, private and trust-free information-value exchange on a large scale.
To achieve this, the Celer Network (CELR/USD) encompasses a cleanly layered architecture that decouples sophisticated on-chain platforms into hierarchical modules. In essence, the architecture simplifies system design, development and maintenance so that each individual component can easily evolve and adapt to changes.
Compared to other projects in the decentralised finance (DeFi) ecosystem, Celer Network’s intricate off-chain infrastructure, combined with its strategic tokenomnics mechanism could give the platform an edge. The architecture has open interfaces that enable and encourage different implementations on each layer. The Celer architecture can thus provide innovative solutions on all layers.
The bottom layer interacts with different underlying blockchains and provides the upper layer with a common abstraction of up-to-date states and bounded-time finality, while the cChannel uses state channel and sidechain techniques, both cornerstones of on-chain scaling platforms.
In other Celer Network news, the project officially launched the mainnet version of cBridge (a multi-channel network that gives users the ability to swap assets across several blockchains with ease) earlier this year.
Celer’s cBridge allows seamless token transfers between Ethereum (ETH) mainnet, its scalability solutions Arbitrum, Polygon (previously Matic) and EVM-compatible smart contracts. Besides interoperability, the mainnet version, named Celer cBridge v1.0, significantly advances the speed and scalability of the interaction between Ethereum’s layers 1 and 2.
What is the CELR token?
CELR is a non-refundable functional utility token. It’s used to pay transaction and protection fees to service providers. The token, which is designed to be used solely by the network, provides on-chain data availability with a novel insurance model. This means that CELR is used as a stake in the State Guardian Network (SGN) to protect offline users’ state availability.
The State Guardian Network is a special compact side chain to guard on-chain states when users are online. CELR token holders can stake their CELR into SGN and become state guardians.
According to the company’s white paper, before a user goes online, they can submit their state to SGN with a certain fee and ask the guardians to guard the state for a certain period of time. A number of guardians are then selected at random to be responsible for this state based on a responsibility score.
Celer Network’s native digital cryptographically secure protocol token also works by incentivising the maintenance of a stable and abundant liquidity pool in the virtual mining process (Proof of Liquidity (PoLC)).
This is because the token is used to maximize liquidity interest payouts in the Liquidity Backing Auction (LiBA). LiBA offers off-chain service providers an opportunity to request liquidity, and lenders can stake their tokens to be given as loans. Off-chain operating networks gain scalability by first trading off network liquidity.
CELR is currently (26 November) trading at around $0.1088. It ranks 139th in the list of cryptocurrencies by market capitalisation at just over $661.1m, according to CoinMarketCap.
It has a circulating supply of 6.08 billion CELR and a total supply of 10 billion.
CELR token price analysis: Technical view
CELR coin achieved its all-time high this year on 15 September, hitting $0.1086. The coin then retreated to $0.0795 on 20 September, but climbed to $0.1987 on 26 September, according to data from CoinMarketCap. Since then it has been showing a downward trajectory and currently sits at $0.1088 having lost 14% in the day (26 November).
Technical analysis provided by CoinCodex shows that short-term sentiment on CELR is bearish, with 10 indicators displaying bullish signals compared with 18 bearish.
“CELR is currently at the trendline support and is also in the extremely oversold zone in the RSI. The RSI was showing signs of recovery on 4 November 2021 – a move above $0.128 would confirm this and signal signs of a bullish momentum.
“The first target could be set at $0.16 and then investors willing to hold CELR for a longer period could also aim towards a new all-time high. However, investors must note that a valid entry would be above the zone of $0.128 and a stop could be set at $0.111. CELR is a fundamentally strong coin thus the long-term outlook is promising.”
CELR token fundamental analysis
Scalability is hindering mass adoption of blockchain technology. During times of high network congestion, transaction times can increase.
For any distributed system, if all nodes need to reach consensus on every single transaction, its performance will be no better than a centralised system with a single node that processes every transaction. The system could be bottlenecked by the processing power of the slowest node. On-chain consensus also has privacy implications because all transactions are permanently public.
The CELR token is unique in that it is designed to have use cases other than being the Celer Network’s native currency. It goes beyond an on-chain consensus to enable off-chain scaling for prime-time users through a coherent architecture that brings internet scale to existing and future blockchains. Users enjoy high scalability and flexibility as a result.
Another factor is that CELR does not charge a smart contract fee for off-chain transactions.
Risks ahead for CELR
Even though the project received a boost when the Celer Network officially launched the mainnet version of cBridge earlier this year, there are still some limitations that affect the Celer ecosystem.
Celer’s sidechain channels do significantly reduce the level of liquidity requirement, however fraud-proof bonds from block proposers are still needed proportional to the level of value transfer at stake.
Overall, a significant amount of liquidity is needed to provide effective state channel service but large crypto assets holders may not have the business interest or technical capability to run a state channel service infrastructure. This creates a mismatch that could affect mass adoption. Also, the technical evolution of off-chain operating networks poses various centralisation risks.
CELR coin price prediction
In terms of a CELR coin price prediction, algorithm-based forecasting service Wallet Investor gives a positive forecast. Based on historical data, Wallet Investor sees the price going up to $0.25 by November 2022, reaching $0.463 by the end of 2024 and hitting $0.566 by the end of 2025.
DigitalCoin supports the bullish CELR crypto forecast, expecting the token to grow to $0.189 in 2022. The forecasting company sees CELR rising 200% from its current level to $0.328 by November 2025 and hitting $0.485 in 2028.
Invezz’s cryptocurrency analyst, Milko Trajcevski, believes that the Celer network addresses a key segment of the crypto industry by providing a useful form of off-chain transaction handling.
“With a market capitalization of $719m, the CELR token has the potential to reach $1bn by the end of November 2021 at its current rate. On 6 November 2021, the token was at $0.108 in value which indicates that it increased by 12% within just a few days” Trajcevski told capital.com.
“The outlook of the CELR token seems optimal and it has the momentum to go over its ATH of $0.19 value point on September 26 2021”.
Note that predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
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