The introduction of stablecoins and DeFi will play an important role in the crypto bull market of 2021. Because it allows investors to participate in many protocols that offer ever-growing high-yield staking pools and facilitate the trading process without using a centralized exchange.

One project that is widely used due to its focus on creating a truly decentralized ecosystem and asset-backed stablecoin is the DeFi protocol Abracadabra.money and its native SPELL token.

According to data from TradingView, after hitting a low of $ 0.0114 on October 15, the SPELL price rose 178.55% and hit a new record high of $ 0.035 on November 1 when the 24-hour Block trading volume increased to USD 109.82 million.

Price table CURSE 4 hours | The source: TradingView

Three reasons SPELL is attracting the attention of DeFi users is that Magic Internet Money (MIM) is evolving into a fully decentralized, cross-chain stablecoin, several cross-chain integrations have expanded its reach, tokenomic (token economy) structure.

Decentralized stablecoin is thriving

One of the biggest factors grabbing the attention of active DeFi users is Abracadabra’s original Magic Internet Money Stablecoin. MIM is a fully secured stablecoin that is minted by the deposit of interest-bearing assets in the DeFi protocol.

Over time, MIMs have grown in popularity and adoption, evidenced by a massive surge in the total banned value of abracadabra, which hit a record $ 4.15 billion on Nov. 1, according to Defi Llama data.

Total value beautiful Abracadabra.money lock | Source: Defi Lama

The circulating supply of MIM has also grown steadily, reaching $ 1.933 billion at one point, according to CoinMarketCap. The latest addition is an expansion of assets that can be pledged as collateral for MIM coinage, which includes currently popular tokens such as Shiba Inu (SHIB), FTX Token (FTT), Wrapped Olympus (OHM), and Fantom (FTM) . .

The cross-chain integration extends the range of SPELL

The second reason is that its expanding ecosystem recently added cross-chain support to many blockchain networks, including Fantom and Binance Smart Chain (BSC).

BSC is the latest addition to the Abracadabra ecosystem after the community finalized voting on October 30th.

Other blockchain protocols currently supported by Abracadabra are Ethereum, Arbitrum, and Avalanche, and the platform also benefits from numerous cross-chain protocol partnerships such as integrations with Convex Finance, Yearn Finance, Curve Finance, and SushiSwap.

Inexpensive tokenomic and reduced circulating offer

Another factor that has caught the attention of DeFi investors is SPELL’s tokenomic structure, which allows for administrative voting on the issues to keep inflation in check.

Team SPELL regularly monitors the release schedule of the various DeFi pools in their ecosystem to ensure that new tokens are minted and used in a way that is most beneficial to protocol and holders.

Due to increasing adoption and rising prices, the large amount of tokens originally set up for minting is no longer needed, so the team has decided to reduce the release schedule by 20% from November 1st. As a result, 8.7 billion SPELLs were removed from the currently circulating supply notification officially.

For the future, the outlook for the project remains optimistic and the team also plans to further integrate SPELL and MIM into the Fantom ecosystem and offer new staking opportunities in Arbitrum and Avalanche.

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