Sphere Finance Could Be The Next 100x Project In Polygon — Here’s Why
Sphere had a major update this month, stopping rebases completely and going fully deflationary. Could it do a 100x the next bull market?
In less than three months since the launch, Sphere has built multiple income streams and TRUE innovations in the Polygon Network. Even though they started as an inflationary autostaking project with 99.000% APY, they went fully deflationary this month, removing the APY and the rebases.
Could Sphere be the next project to do a 100x in the Polygon Network and become one of Polygons’ top projects? Let’s explore it!
Sphere Finance in 1 Minute
Sphere started as an autostaking protocol giving 99.000% APY with a rebase mechanism every 30 minutes giving interest to Sphere holders.
Since the beginning, they have been developing innovations non-stop such as Quantum Liquidity, which is, in a nutshell, yield farming using the project liquidity to increase its total amount, making the token price more stable and increasing its price over time.
Other projects wanted to use Quantum Liquidity for their own liquidity pools, so Sphere came up with Quantum Liquidity as a Service, providing this service to other projects while getting a commission that went straight into the Sphere treasury.
The other big innovation brought by Sphere Finance are the projects Dystopia and Penrose, which aim to be the Curve and Convex of Polygon and create an equivalent of the Curve Wars, called the Sphere Wars.
The Curve Wars can be described as the race between various protocols that are continuously trying to ensure that their preferred pools are incentivized in Curve to get the highest rewards.
In the same manner, Sphere aims to be the leader of the Curve Wars in Polygon, by owning both Dystopia, the Curve equivalent on Polygon, and Penrose the Convex equivalent on Polygon. They also added other incentives and improvements compared to Curve and Convex.
The project has other innovations in the works so that Sphere becomes the S&P 500 of crypto, meaning that it will have big governance power over innovative projects, deciding over them as well as receiving income from them.
What would it take for Sphere to do a 100x from this point?
So what would it take for Sphere to do a 100x in the next bull run?
Right now there are 8.8 billion Sphere tokens in circulation and with a price of roughly 1 cent, this adds up to a total market cap of 95M dollars.
Sphere has turned deflationary by stopping the rebases so the number of Sphere tokens are no longer increasing and will start decreasing steadily thanks to the burning of tokens with the income streams of Sphere.
These income streams include the buy and sell fees, Quantum Liquidity As A Service (QLAAS), Dystopia, Penrose, Preon, the Galaxy Marketplace, Tetu Decentralized Exchange and more.
The Sphere market cap x100 at this point would be 9.5 Billion Dollars. And that would put Sphere into one of the top 20 crypto projects at the moment. Seeing this, the scenario may seem highly unlikely, as Sphere already having almost 100M in market cap means it would be difficult for the project to do a 100X.
But there’s one thing to take into account. And it is that for Sphere’s investors to make a 100x, they don’t need the market cap to do a 100x too. This is because Sphere is starting its deflationary phase, meaning that in 1–2 years the supply of Sphere will likely be much lower than it is now.
Example / Thought Experiment
For example, let’s see what would happen if 1–2 years passed and the supply of Sphere went down from 8.8 billion tokens as it has now to 4.4 billion tokens, cutting in half the actual supply.
Then a 50x in market cap would mean a 100x in the price of each Sphere token. So investors who now have $100 in Sphere, would have $10.000 in Sphere tokens if this scenario occurs.
Diversification and not betting the family farm on one project
But with everything said, remember that Sphere is a relatively medium-small project so I wouldn’t bet the family farm on this project. It could do a 100x in the next bull market, but as with any project, there are risks and macroeconomic conditions to take into account.
So as always, remember this article is not investment advice and please do your own research before investing in any crypto project. Don’t base your investments on just a couple of Youtube videos or articles!
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