With cryptocurrencies in a bear trend, it is definitely important to understand what could happen with Drip Network (DRIP) and the community. Several analysts consider that Bitcoin could drop even further, and this is creating an uncomfortable situation for some altcoins.
Let’s have a look at Drip Network and how this virtual currency could perform in the current bear market. After hitting record highs in 2021, it is time to get realistic and understand what could happen with DRIP in the coming months.
What is Drip Network (DRIP)?
Drip Network is a deflationary project that offers daily ROI (return on investment) to holders. The DRIP token was launched on the Binance Smart Chain (BSC) platform as a BEP-20 token. Drip Network is currently offering users a return on their investment of 1% returns on their principal.
In order to pay these large rewards, there is a 10% tax on all transactions that take place on the Drip Network. Therefore, this is a project that has attracted users for its daily rewards and for becoming one of the few deflationary virtual currencies in the cryptocurrency market. In the future, the project is planning to offer cross-chain functionalities to make it possible to offer better and more advanced solutions to users beyond the Binance Smart Chain ecosystem.
DRIP tipping point
We have seen a clear expansion of decentralized finance (DeFi) solutions over the last few years thanks to the expansion of the Binance Smart Chain. Many of these DeFi projects offered large ROI by staking and farming tokens. Drip Network is offering similar services but from a different perspective.
Indeed, most DeFi projects (decentralized exchanges and farming platforms) have tokens that are inflationary (more tokens are created to reward users). Therefore, the tokens that users receive become less valuable every time a new token is printed. Hence, Drip Network became one of the most unique projects offering rewards to users without increasing its total supply.
As explained by Drip Network in its whitepaper, DRIP tokens can be deposited into Drip’s faucet contract and earn a consistent 1% daily return up to365% of the initial principal amount. This project claims to be the only deflationary ROI token that pays stakers and referrers by applying a tax on transactions rather than using inflation.
Thanks to its unique business model, this virtual currency started 2022 with a strong bull market that pushed its price towards $160. This was a total record for DRIP, which moved against the market (every other virtual currency registered losses).
Therefore, we see that this unique business idea and proposal has helped DRIP become one of the most demanded digital assets in early 2022. It would be very interesting to see how this coin will evolve in a bear trend and whether the taxes received from transactions would be enough to cover the expenditures they have.
Drip Network (DRIP) Price Prediction – How much can DRIP price increase in 2022?
In order to better understand what could happen with DRIP and the Drip Network, we should not only focus on fundamentals but should also have a look at the technical aspect of this virtual currency.
In the image below, we see that DRIP has experienced strong growth during the first weeks of 2022. This shows that there was decoupling from the general cryptocurrency market. At that time, the crypto industry was falling and DRIP performed extraordinarily well.
Indeed, from December 2021 to January 2022, the coin surged by over 500%! That’s an incredible and fast growth rate for a coin that was released during the bull market of 2021. Those users that purchased the coin in 2021 and early 2022 had the opportunity to sell this coin at a profit in late January 2022.
As it happened with other digital assets, DRIP entered a bear market and corrected the gains that it experienced in the early months of 2022. At the time of writing this post, the coin is being traded at close to $9.33, showing that there has been a correction of almost 95% from its peak in late January.
Investors should pay close attention to these types of price fluctuations. At the moment, we know that there is a bear trend in the crypto industry that has had a stronger impact on smaller coins. Funds are moving away from altcoins towards larger and relatively stable virtual currencies such as Bitcoin.
This has pushed DRIP to the same price level that it had after being released to the market in mid-2021. Therefore, the possibility of accumulating at these prices is real and could be a great investment if the coin starts to move higher. Of course, we are not able to predict the future, but if DRIP starts a new bull market, then we are currently at one of the best entry points since the coin was released in 2021.
What can you do with DRIP token? What is the token utility of DRIP?
There are different use cases for the DRIP token that are worth taking into account. The first one is related to the ROI that it offers to users. Investors can stake their funds on DRIP Network’s Faucet and get high rewards with relatively low risk. This contract operates in a similar way to a high yield certificate and it pays 1% daily return to users up to 365%.
At the same time, investors can also compound and increase their earnings. Therefore, DRIP has provided a unique way for investors to earn rewards on their coins by staking them on DRIP Network’s Faucet.
At the same time, Drip Network is offering rewards to those users that refer others. Therefore, you will get the possibility to earn large rewards if you refer friends. The rewards that you receive from referrals will come from each of the deposits they make and downline bonuses they get over time.
What would be a decent DRIP Price prediction for 2022?
It is now time to understand which could be a decent DRIP Price prediction for 2022. We have seen that the virtual currency experienced a fast and large bull market in early 2022. Now, the coin is in an ongoing bear trend that does not seem to be ending anytime soon.
Compared to other cryptocurrencies, DRIP has experienced a strong move downwards (95% correction from its all-time high), similar to what happened to other altcoins. In order for DRIP to recover, it would be necessary for the whole DeFi market to start moving higher again.
It might be possible to see lower prices in the near future for DRIP. However, if a bull trend starts in the future, this virtual currency could eventually hit $20, $50 and even $100. Everything will depend on the strength of the bull market and the fundamentals behind this coin (whether or not its business proposal works).
Can DRIP Price Reach $200?
Can DRIP price reach $200? This is a very tough question to answer. If we would have been in early 2022 and a bull market in the whole crypto industry, the answer would have been yes. Now, that the crypto market is in a bear trend and that DRIP has retracted by 95% from its all-time high, it might be much more difficult. It would be necessary for this virtual currency to expand by 2.040% in the next few months if it wants to be traded at around $200 per coin.
Based on different estimations, these are the following price predictions for DRIP.
- DRIP price prediction for 2022: $5 – $20
- DRIP price prediction for 2023: $2 – $50
- DRIP price prediction for 2024: $10 – $100
- DRIP price prediction for 2025: $35 – $200
- Trade on Bitmex
- Trade on Binance Jersey
Subscribe to our Newsletter to be a part of our future $1,000 per month contests.