As of this writing, CELR is trading at $0.0502, down 3.93% with a Market Cap of $326,888,284. CELR is trading above the January low and is in a sideways channel with the overall bigger picture still looking upwards; even in the recent bearish downturn.
The market reacted well to off-chain transaction handler Celer Network’s launch of its interchain message framework rising 47% over a few days but only to fall back 23% to today’s (20 January) price of $0.07629.
Claiming its CelerIM will fundamentally change how multi-blockchain dApps are built and used, it allows developers to build inter-chain-native dApps with “efficient liquidity utilisation, coherent application logic, and shared states” instead of deploying multiple isolated copies of smart contracts on different blockchains.
On 8 January it announced the integration of two new chains and 10 tokens on its cBridge which is now handling more than $2bn in total transaction volume.
In this article we look at the origins and ambitions of the network and at where its price might go from here.
Origins and aims of the Celer Network
CELR was born from a layer-2 scaling solution that offers off-chain transactions handling. The Celar Network was founded in 2014 by Mo Dong and Junda Liu, with the aim of creating decentralised ecosystems that 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 (20 January) trading at around $0.076. It ranks 137th in the list of cryptocurrencies by market capitalisation at just under $470m, according to CoinMarketCap.
It has a circulating supply of 6.17 billion CELR and a total supply of 10 billion.
On 15 December Celer Network announced a strategic partnership with the cross chain hub, ChainSwap, which is now working on the integration of Celer’s cBridge with its Cross-chain Aggregator. cBridge now surpasses $2bn in total cross-chain transaction volume said the network.
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 $0.076 (20 January).
Technical analysis provided by CoinCodex shows that short-term sentiment on CELR remains bearish, with six indicators displaying bullish signals compared with 20 bearish.
The daily simple and exponential moving averages are giving mostly sell signals, according to data from TradingView, while the Relative Strength Index (RSI) is neutral at 47.95 (20 January).
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 in 2021, 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 $0.17 by the start of 2023, reaching $0.52 in five years.
DigitalCoin supports the bullish CELR crypto forecast, expecting the token to average to $0.11 in 2022. The forecasting company sees CELR rising to $0.16 by 2025 and hitting $0.27 in 2028.
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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