The Swell crypto price went parabolic, becoming one of the best-performing airdrops of the year. Data by Bybit shows that the $SWELL token rose to an intraday high of $0.048, up by over 391% from its lowest point on Thursday, November 8. This surge has brought its market cap to over $60 million, and its fully diluted valuation (FDV) to $466 million.
Why is the Swell crypto price soaring?
Swell is a leading player in the Decentralized Finance (DeFi) industry, where it offers a liquid staking platform for Ethereum.
Liquid staking is a unique approach that lets crypto investors generate more returns in the crypto sector.
It is a good alternative to traditional staking, where users delegate and lock their tokens for a month to generate returns.
Ethereum stakers can move their tokens to Swell and receive an alternative token – swETH- , which they can use in DeFi or even redeem it for their original coins.
Swell has become one of the top players in a sector that is now dominated by Lido DAO. While its total assets have dropped in the past few months, it still has over $1.42 billion in total value locked. Some of these tokens are from Justin Sun, the founder of Tron, one of the most popular cryptocurrencies in the industry.
Swell also offers additional solutions through its top partners like Derive, Sommelier, EigenLayer, and Equilibria.
Therefore, the Swell crypto price surged because of its strong fundamentals in the crypto industry.
Also, the token rallied because of the upcoming Devcon Bangkok event that is sponsored by Chainlink, Hemi, AltLayer, and Radius.
The other reason is that the Swell Airdrop was welcomed by exchanges. For example, KuCoin Futures listed the Swell-USDT pair with a 1:30 leverage. It was also listed by Coinbase, Gate, Kraken, Bybit, and Bitget. In most cases, cryptocurrencies surge after major exchange listings.
Read more: Catizen Price Has Formed a Bullish Pattern: Will CATI surge to $1?
Will the Swell price surge to $1?
The 30-minute chart shows that the SWELL token has surged hard after bottoming at $0.010. It has now formed a bullish pennant pattern, a popular bullish chart sign. Therefore, in the near term, there are signs that the coin will bounce back and retest the psychological point at $0.05, which is about 10% above the current level.
So, will the Swell crypto price jump to $1? To do that, it needs to rise by 2,122%, which is a big number. In the past, however, some cryptocurrencies like Popcat, Mog Coin, and Dogwifhat have jumped by a similar number within a short period.
While this is possible, Bankless Times believes that a surge to $1, while possible, will take time. It will depend on how its ecosystem grows and how the crypto industry performs.
Read more: Ethereum Price Prediction: ETH Could Surge to $10k, Analyst Says
