The TONIC price has been in a strong bearish trend in the past few weeks as concerns about DeFi remain. Tectonic is trading at $0.00000018, which is significantly higher than its all-time high of $0.00000182, while its market cap has dropped to about $13 million. At the same time, the total value locked (TVL) has declined from over $548 million to the current $328 million.
Tectonic is a relatively new decentralized finance (DeFi) company. It is a leading platform created in the Cronos ecosystem that enables cross-chain investing and deposits. The concept is similar to that of Anchor Protocol, the high-yield protocol that contributed to Terra’s crash. Funds deposited by users in the network are provided as liquidity to borrowers, who borrow at variable interest rates.
At the time of writing, the total amount supplied in the network is over $1 billion, while the total funds borrowed are in excess of over $536 million. The most popular markets in Tectonic are Dai. Tether, and USD Coin.
Therefore, the TONIC price performance is mostly because of fears that their coins could decline after the Terra LUNA crash. Earlier this month, the TONIC price reacted to the launch of staking, meaning that people can earn returns by just holding the coin.
The TONIC price has been in a strong bearish trend in the past few days. The sell-off continued when the coin managed to move below the key support level at $0.00000053, which was the lowest level on January 24th. In addition, the coin remains below the 25-day and 50-day moving averages while the MACD has moved below the oversold level.
Therefore, there is a likelihood that the Tectonic price will likely continue falling in the near term. If this happens, the next key support to watch will be at $0.00000010. The stop-loss will be at $0.00000030.
This post was last modified on May 30, 2022, 09:19 BST 09:19