CNS price rallied roughly 1,000% in the past 5 weeks as new partnerships, a chain migration and the promise of “announcements upon announcements” lure new investors.
In the past few weeks, Centric Swap (CNS), a dual-token model that gives stakers a fixed hourly yield that “stabilizes over time as it self-regulates token supply to meet ongoing changes in demand,” has rallied more than 850% and still about 200% away from its previous all-time high.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.000104 on Sept. 9, the price of CNS has skyrocketed 1,130% to a daily high at $0.0017659 on Oct. 15 as its 24-hour trading volume spiked 130% to $6.4 million.
Three reasons for the rapid rise in CNS price include the expansion of the project’s ecosystem through partnerships, a $1 billion injection by Binance into the DeFi ecosystem on the Binance Smart Chain (BSC) and the promise of multiple upcoming developments and announcements by the project’s developers.
Centric’s ecosystem expands
Real-world adoption is probably one of the best validation signals for a project because the increased token utility tends to boost prices and it also brings new attention to the project.
Over the past couple of months, the Centric Swap protocol signed a handful of partnerships with companies like Tourvest Travel Services and Absolute World, which will allow CNS to be used as a payment option for traveling expenses.
Other big partnerships include a collaboration with Goldgenie, which specializes in high-end luxury items like gold-plated cell phones and a partnership with the decentralized cross-chain bridge CroxSwap.
Binance Smart Chain invests in CNS
On July 15, Centric Swap migrated from the Tron network to the Binance Smart Chain. This gave the project access to the active trading community on BSC which has helped boost its exposure and increase its trading volume.
This turned out to be a timely move because Binance recently announced that it would investing $1 billion toward developing the DeFi ecosystem on the BSC, which Centric Swap is now a part of.
Protocol investments and developer incentive plans have grown in popularity in recent months after multiple projects, including Avalance, Fantom and Terra used the tactic to grow their communities and attract liquidity to their DeFi ecosystems. In each instance, the tactic lead to a strong increase in each project’s token price.
Related: Ethereum alternatives and layer-one solutions see steady gains in September
Teasing upcoming announcements
The project’s Twitter feed shows that prior to the recent announcements such as the Absolute World partnership, the team at Centric dropped numerous hints about upcoming developments may have excited community members and triggered a buying spree.
Attention #CentricWarriors! Who is excited for this week’s (Thursday’s) partnership announcement? The first 100 people will receive an incredible promotional offer! Don’t miss it! $CNR $CNS #BSCGem #BSC #BinanceSmartChain pic.twitter.com/nZR6hVHW3k
— Centric Official (@CentricRise) October 6, 2021
The announcement of an announcement approach is a popular marketing tactic used in the cryptocurrency sector, but it remains to be seen if this will offer a sustainable pump in price or result in a buy the rumor, sell the news scenario.
When one Twitter user suggested that the project would amount to nothing more than a “buy the rumor, sell the news” event, Centric chief operating officer Thomas Butcher rebuffed the idea and said that there is more in the pipeline for Centric in the coming months.
“It doesn’t matter, we have even more news behind that news, and more news behind that news, and more news behind that news… See the pattern that we’re entering.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.