Swarm Markets (ETH: $SMT) is described by its creators as the first licensed DeFi platform. The goal of the platform is to bridge the legacy financial system with DeFi by offering a secure, efficient, and compliant environment to trade digital assets. By doing so, it aims to accelerate innovation in the financial world.
The Swarm Markets Platform
Swarm Markets is built on Ethereum and leverages its smart contract capabilities to offer unique financial products in a secure, transparent, and efficient manner. Soon after its launch, Swarm Markets garnered the attention of the crypto world for its unique offering.
One of its main value propositions is regulatory compliance. A major challenge facing the DeFi space is the lack of regulatory clarity, which has kept legacy financial institutions out of the space. Having acquired an operating license from the German financial regulator, Swarm Markets offers institutional investors the legal clarity they desire.
Besides being regulated, Swarm Markets offers institutional-grade security to investors, which includes regular smart contract audits and well-established cybersecurity protocols to secure user data. The platform has also launched numerous tools and APIs that make it easy for financial institutions to seamlessly integrate DeFi into their services.
How Asset Tokenization On Swarm Markets Works
The platform uses decentralized over-the-counter (dOTC) smart contracts that help to eliminate slippage, ensuring instant settlement. The result is minimal credit and counterparty risks since all trade are fully collateralized. Users can presently access US Treasury bond ETFs, stocks, and gold as tokenized assets. The platform is accessible via a desktop app and is available on Ethereum, Polygon, and Base.
Liquidity On Swarm Markets
A major factor for the success of any investment product is liquidity. On Swarm Markets, liquidity is enhanced to encourage users to participate. One tool it uses for this goal is asset tokenization, which allows real-world assets to be tokenized on the blockchain. Additionally, it has a robust incentive structure that encourages liquidity providers to participate in the ecosystem.
The SMT Token
At the heart of Swarm Markets is the SMT token, which is an ERC 20 standard token. IT is used to ensure smooth transactions, and for the reward mechanism on the platform. Additionally, it is used to facilitate payments and fees within the ecosystem.
The initial total supply was 250,000,000 SMT tokens, with a current circulating supply of 83.84M SMT SMT tokens. Since the launch, the total supply has fallen to 157.33M SMT tokens.
SMT Token Market Performance
The SMT token has declined 9.11% over the past month, but is still up 33.46% over the past year. It has a market cap of $16.08M, and a 24-hour trading volume of $151.61K. It reached its all-time high of $2.98 in October 2021, and has since fallen 93.57% to its current price of $0.1918. Despite this tumble, SMT could potentially be a great long-term addition to your portfolio.
Should You Invest In SMT Now?
Following the 2024 presidential election, the crypto world has seen a huge resurgence, with the price of Bitcoin rising to a new high of $93,434.36 on November 13, 2024. Trump’s election could lead to regulatory clarity for the crypto sector, which will boost institutional interest in the crypto sector.
With Swarm Markets currently holding $11,323,009 in total value locked, coupled with its regulated status, it could be one of the go-to platforms for institutional investors seeking DeFi exposure. The result is that while SMT may not experience huge short-term gains, it could see a massive increase in interest over the long term.
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