Gnosis (COIN: $GNO) has been rallying for the past seven days, with its value rising 44.13%. It briefly broke into the top 100 cryptocurrencies by market cap. However, it has since fallen to #103 due to the ongoing intense crypto market rally.
Why is Gnosis (GNO) Rising?
Since early October, the price of $GNO has rallied from around $93.02 to the current price of $156.00 as of November 10, 2023. One reason for this rise is Gnosis Pay, which launched in July 2023. Since its launch, the price of GNO tokens has been trending upward, with a sudden spike happening in November.
While Gnosis Pay works like any other Visa debit card, it offers more. The card is powered by the blockchain instead of Swift and the international banking system to power payments. On October 10, 2023, Gnosis Chain added support for sDAI, an interest-bearing DAI, the popular stablecoin from MakerDAO. Holders of sDAI earn a 5% interest from payments of short-term US Treasuries held by MakerDAO.
For now, Gnosis Pay is available in several European countries. The Gnosis Chain developers plan to launch the card in other markets later, focusing on Brazil, the US, and India. However, uncertainty about their expansion plans has not stopped the rush of capital into GNO.
What is Gnosis?
Gnosis is a blockchain infrastructure provider launched in 2015. It initially worked as a decentralized prediction market. However, the team later realized there was a huge need for infrastructure tools to expand the utility of the Ethereum ecosystem.
Today, Gnosis operates mostly as an Ethereum sidechain that improves functionality with the Ethereum ecosystem. Four critical tools power the Gnosis Chain. These are:
How does the Gnosis ecosystem work?
The Gnosis ecosystem has several components that help to improve the utility of Ethereum.
CoW Protocol
Cow Protocol is a DEX that lets users swap ERC20 tokens. Instead of an automated market maker, the protocol uses multi-token batch auctions to match buyers to sellers. The system settles trades at the best available price.
Safe
Safe in a multi-sig wallet infrastructure. It works as a smart contract wallet, which requires a set minimum number of approvals to execute a transaction.
Gnosis Chain
Gnosis Chain is the execution layers Ethereum-compatible chain. The xDAI stablecoin is used to pay transaction fees on the chain. The Gnosis Beacon Chain (GBC) consensus layer secures the chain. Users stake GNO tokens to validate transactions and receive rewards in additional GNO tokens.
GnosisDAO
GnosisDAO is the governing body of the Gnosis ecosystem, created in 2020. The GnosisDAO treasury holds vast amounts of GNO and ETH, which are in vesting for eight years.
Gnosis Token (GNO) Price Prediction
As of November 10, 2023, the circulating supply of GNO tokens is 2,589,588, with a market cap of $400,156,855. The current market cap places GNO tokens at #103 by market cap. GNO tokens have seen a major upsurge in trading volume, which has risen to $19,933,805 in the past 24 hours.
Most of the trading volume is on Bibox, which accounts for 6318% of the trading volume. Binance and Balancer V2 also account for a significant portion of the trading volume of 16.90%.
Based on the current surge in the value of GNO tokens due to new use cases in the form of Gnosis Pay, GNO tokens may get back to their former all-time high price of $1,088.87. The current price is an 85.48% discount on the ATH. Consequently, there is room to grow.
Should You Buy GNO Tokens
GNO tokens are surging right now. For those worried about getting in too late, the fundamentals indicate that trading volumes are rising, a sign of increasing interest in the tokens. As word spreads about the recent stellar performance, its value could rise even higher. However, crypto markets are highly volatile, and all investing decisions must be based on a careful risk assessment.
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