Continuing with the evolution in the arena of cryptocurrencies, HedgeFi (HEDGE) is a new entrant among all these protocols. The token used as the main tool of HedgeFi’s platform has gained tremendous amounts of value in a relatively short span of time, signaling both the popularity of activities in the decentralized finance space and the desire for collaboration in investing.
HedgeFi with its ranking of 3792 in the extensive world of cryptocurrencies has raised its value from $0.001001 and up to $ 0.001504 in the last 24 hours, that is 38.53%. This big spike has pushed its market capitalization to $1.50 million, which represents the total value of all the HEDGE tokens in circulation.
The token behind the platform – HedgeFi – has established itself as a unique approach to group investment within the crypto sphere. This means users are able to combine efforts to invest in securities where profits are likely to be made while at the same time curing specific losses. With the help of such a strategy, the organizers called for investors’ attention toward new approaches to cope with uneasy, though frequently occurring, fluctuations in cryptocurrencies’ prices.
Since HedgeFi assists in investing, it allows for making investments in a variety of financial instruments that include stocks, ETFs as well as Cryptocurrencies. It also brings flexibility in creation of portfolios that reflect personal risk profiles of the user in an endeavour to achieve set objectives. And that is why HedgeFi, along with its investment tools, is also engaged in improving the cumulative financial literacy of its users.
That’s why the increase in the HEDGE token price over the past few days has been accompanied by a higher trading volume: $84,38K within the last 24 hours. This time, we have seen that the volume to market cap ratio is 5.61%, which is still moderate, but this clearly indicates that as the token gets more popular, there is definitely a chance of trading volume getting larger.
HedgeFi token distribution is fairly straightforward. There is a total and max supply of 1,000,000,000 HEDGE tokens, and all of them are currently in circulation, according to HedgeFi. The fact that the distribution of tokens is clearly defined can be a plus for investors who always fear the dilution of their securities at some point in the future.
The high degree of security and compliance with regulation measures has also played some part in winning the confidence of the users of the platform. HedgeFi claims to follow all the set financial rules and complete registration procedures in order to become a legitimate financial institution in the deported of DeFi.
HedgeFi’s development team has been actively working to enhance the platform’s offerings. They have developed a number of investment products to fit specific levels of risk-takers as well as kinds of traders. Some of these strategies, including the low-frequency ones, demonstrate extremely high-profit rates of 80% and above, though with relatively low trading frequency per week. This appears to rely more on accuracy than the number of trades one can undertake in a day, which might suit investors who are basically not very active in the market.
The HEDGE token does not only act as a trading asset for users but it is also a utilised token within HedgeFi ecosystem. Besides the investment management, it also functions as a functional token, and grants voting rights to the users concerning future advancements in the programme. This additional characteristic of the token generates two kind of value adding a layer of confort and possible utility to the token.
Depending on that index, the increase in prices can be seen from the recent past with that too much attention should be paid before investing. The cryptocurrency market is highly unpredictable and what may have worked today may not work tomorrow. This is because HedgeFi’s market capitalization is not very large, and it is possibly on the verge of emotions or a large transaction impacting its price.
With the growth in the compound cryptocurrency market, financial platforms, such as HedgeFi, that solve existing investment problems will increasingly gain popularity. HEDGE business depends on the outcomes of the performance by such a platform, specifically in terms of collaborative investment returns.
As of now, HedgeFi can arguably add that the performance achieved in the last couple of months has placed the platform on the map of the DeFi economy and crypto space in general among those interested in the next big thing within decentralized finance. So, as usual, the best thing is to do proper research and know your risk tolerance before you start investing in any cryptocurrencies.
Therefore, as the HedgeFi story unfolds, many will wait and see whether the upward growth in both price and adoption will turn out to be healthy signs for this DeFi gem in this highly saturated crypto world.
