Key facts:
-
DRIFT is trading for around $0.67 at the time of writing.
-
Analysts have mixed opinions on the project.
Drift (DRIFT), a governance token of the eponymous decentralized exchange built on the Solana network, has caught the attention of some analysts and investors, including Multicoin Capital, a digital asset investment firm.
This company claims that Drift could be on the verge of having its own “Binance moment”referring to the prominence that the Bitcoin-criptomonedas/” target=”_blank” rel=”noreferrer noopener”>exchange leader in the Cryptocurrency sector when it was launched in 2017.
In his report Most recently, Multicoin Capital claims that Drift It has the potential to become a key player in the derivatives market. decentralized.
The firm compares its performance to the rise of Binance. “We believe its market share could be similar to that of Binance after its launch,” the report says.
Multicoin Capital highlights that while other derivatives DEXs have gained momentary popularity, None have managed to establish themselves as long-term leaders.. Can Drift do it? According to this company, Drift has elements that could make it stand out in the derivatives marketIts main strengths include transparency, diverse liquidity, and being built on the Solana network, which offers a considerable advantage in terms of security and efficiency.
However, the firm also warns that operating a platform like Drift, which facilitates trading in multiple assets, involves significant risks (among them could be security issues, considering that many DeFi protocols have been hacked).
DRIFT Price Potential
Based on the above, Multicoin Capital maintains that the DRIFT token is “undervalued.” Its price is currently around $0.66 per unit, having experienced a 60% increase in the last seven daysas seen in the following graph TradingView.
DRIFT Price. Source: TradingView.
With a market cap of $151 million and 225 million tokens in circulation, DRIFT ranks 258th in the cryptocurrency ranking by capitalization.
The firm projects that by 2027, DRIFT price could reach $3.58an increase of more than five times in the next three years. It is worth clarifying that this is only a speculative analysis made by the company and, in no way should it be taken as a guarantee that such a thing will happen.
Criticisms and challenges for DRIFT
Not everyone agrees with Multicoin Capital’s optimism. DeFi Voyager, the pseudonym used on internet forums by a researcher specializing in decentralized finance, has shown his reservations regarding the report.
Although he considers the analysis to be sound, he highlights certain points with which he does not agree. In particular, criticizes Drift’s dependence on Solanaarguing that if this network faces problems, Drift could be affected.
Solana has faced multiple outages in the past. As reported CriptoNoticias, the most recent in February 2024, resulting in a drop in the price of its SOL cryptocurrency.
Between 2022 and 2023, The network suffered up to six outageswhich calls into question its long-term reliability.
DeFi Voyager argues a lack of focus. The Drift team “seems to be working on too many projects at once, which could affect the quality of each of them.”
They started with a perpetual derivatives exchange, then launched a token with no clear utility, and then expanded into betting. In his view, This dispersion of efforts could dilute resources and hinder growth in a specific area.
The specialist criticism the premature launch of the DRIFT token through a airdrop last May, without the perpetual derivatives exchange being fully developed.
In his opinion, all these details could make it difficult for Drift to establish itself in the market.
Also, it should be considered that It is a inflationary tokenCurrently, according to data from CoinMarketCap, there are around 225 million DRIFT in circulation, out of a total of 1 billion. This means that the price could be diluted by token inflation, making it perhaps not a good coin to hold in the long term.
Clarification: This article is written for informational purposes only and should not be considered investment advice or financial advice. Each investor is responsible for conducting their own research.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.