The market order has changed. XRP has taken the fourth spot, bumping Binance Coin to the fifth spot despite both being in the red. Binance Coin has shed 6.28% in the last 24 hours and has fallen to $588 as traders debate what to do next. However, for investors wondering what cryptocurrency to invest in today, the question is not what will happen to Binance Coin.
The question is whether holding exchange-based tokens or settlement coins is even relevant in an era in which there are clear protocols for earning passive income. There is a cryptocurrency out there with functioning infrastructure, a limited supply, and passive income opportunities that Binance Coin and XRP do not provide.
BNB Drops Lower
XRP has taken the spot from Binance Coin, but this does not mean anything has changed on the fundamental side. XRP is currently trading at $1.36 and has shed 33% in one month. Despite Goldman Sachs holding $152 million in XRP ETFs, there is no income generated by XRP holders. All XRP does is settle transactions. It does not multiply the value of holders.
The same goes for Binance Coin. While the value of Binance Coin is tied to trading volume on Binance and to the burning of Binance Coin, burning does not provide income to holders. There are no dividends earned on transactions processed on the exchange, and there is only speculation about the timing of the burn. As such, neither XRP nor Binance Coin qualifies as the best cryptocurrency to invest in today.
What Mutuum Finance Actually Builds
Mutuum Finance (MUTM) is a decentralized, non-custodial lending platform in which users earn income on their holdings without selling them. Mutuum Finance has two different markets: peer-to-contract (P2C) and peer-to-peer (P2P).
Peer-to-Contract lending features pools where different suppliers’ liquidity is combined. When a user adds $8,000 in USDC, they will be rewarded with mtUSDC, which will automatically start earning interest. At an achievable 10% APY, this could increase to a total of $8,800 in one year without the user’s involvement. Peer-to-peer is a type of market where users can set their own loan terms. A user who wants to borrow $4,000 ETH for a short time could be able to do so, negotiating a 12% APY and SHIB collateral.
Presale Supply and 21x Opening Window
The fixed supply mechanism is what differentiates Mutuum Finance from other DeFi tokens, which have inflationary systems. The total supply is capped at 4 billion, with 45.5% allocated for the presale. This is a fixed amount, with over 850 million absorbed by over 19,000 holders, raising a total of $20,500,000.
The price for Phase 7 is set at $0.04, while Phase 8, which is set to be released soon, will be priced at $0.045. The public launch will be activated when the entire presale is sold out, and the price will be fixed at $0.06. However, according to analysts who have created a model for what will happen when the platform is launched, it is likely that the price will immediately rise 21x. This is due to the fixed supply versus growing demand and adoption, listings, and the other growth drivers like the protocol’s buyback-and-distribute mechanism. If the demand from stakers and new users is as predicted, it is likely that the price will be adjusted to $0.84 within a short time of its launch.
Earning While Holding: Dividends and Daily Rewards
Unlike BNB, which simply reduces float by burning, Mutuum actually transfers value to participants. The buy and distribute mechanism utilizes a portion of the borrowing fees from the protocol to buy MUTM on the open market. These MUTM tokens are then transferred to users who stake their mtTokens with the safety module.
Take the example of a user who lends $12,000 of ETH to a liquidity pool. The user receives mtETH, which they decide to stake. What if the fees from the protocol reach $600,000 per month, with $90,000 of this being used for the buyback and redistribution? The staker could get up to an extra $1,200, separate from their yield on the lending.
Why Infrastructure Beats Sentiment
BNB is waiting for a volume boost while XRP is waiting for a lawsuit to spark nostalgia. Mutuum Finance on the other hand, has an audited lending platform with real fees to transfer to their token holders. For investors looking to determine what is the best crypto to buy, it’s not about which one has the top market capitalization. It’s about which one actually produces value.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
Source: https://www.cryptopolitan.com/binance-coin-price-forecast-where-is-bnb-headed-as-xrp-flips-it-and-which-token-is-the-best-crypto-to-buy/
