Reef is an ecosystem for decentralized finance, powered by Polkadot. It provides interoperability for accessing DeFi liquidity across multiple blockchain ecosystems. The fast and scalable Reef Chain is so far integrated with Polkadot, Ethereum, Binance Smart Chain, Cosmos, and Avalanche. Reef Finance provides cross-chain trading, with both a yield engine and a smart liquidity aggregator.

The native currency of Reef Finance is called REEF and it is used for transaction fees and on-chain governance. In the relatively short time that REEF has been on the market, its price has already seen some significant change, and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of REEF price – as well as the factors which influence it.

Reef Finance Price History

REEF was launched through the Binance Launchpool in December 2020 and began trading on Dec. 29, 2020 at $0.00125. It experienced a large trade volume on its first day and immediately soared to its all-time high of $0.30. REEF price quickly plummeted again and by the end of its first day of trading, it was worth little more than $0.02.

It dipped further to about $0.01 the following day and prices continued to fall for most of the first half of January 2021, until REEF hit a low of $0.0065. After that, the coin found some fresh bullish momentum and regained $0.01 a couple of days later. By the end of the month, REEF was worth about $0.02.

The upward movement continued into February, as REEF surged to over $0.05 by the middle of the month. A more than 50% pullback then saw prices dip below $0.03 by the end of February. Another burst of positive momentum in the first half of March took REEF up to almost $0.06, but it once again retraced, finishing the month below $0.04.

April proved to be somewhat volatile as REEF traded between $0.027 and $0.049. The highest price recorded in May was $0.056, at which point Reef Finance has a market cap of over $600 million. Prices began to fall after that, however, and REEF touched lows of $0.017 during a single-day crash of 37%. REEF recovered to $0.037 later in the month, but had fallen back to $0.027 by the end of May.

Analyzing Reef Finance Price History

Reef Finance price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis involves using various indicators while studying price charts in order to make sense of previous price movements. With REEF, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges. This was especially relevant on REEF’s first day on the market, as it surged to its all-time high, following an immediate listing on Binance which introduced the coin to a large number of traders.

Fundamental analysis, on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. Reef Finance raised almost $4 million in its initial coin offering and attracted large investors well known in the blockchain space, such as NGC, Alameda Research, and Bitcoin.com. This could be a good sign for the fundamental value of the project.

Broader market trends have also played a role in the price history of REEF. Its surge early in 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

The sudden crash in May 2021 was also market-wide, affecting every single major cryptocurrency. Various contributing factors have been suggested, including comments made by Elon Musk, a crackdown by Chinese authorities, liquidations, and a healthy market correction.

The overall price trend of REEF tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Reef Finance (REEF)

A variety of different things can affect the price of REEF, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider crypto and global economies.

REEF has a capped max supply of 20 billion tokens, making it a scarce asset, like Bitcoin. REEF tokens will be gradually released into the circulating supply until the end of 2025. As fees for transactions and deploying smart contracts on Reef Chain are burned, the token is deflationary, meaning a constant level of demand after all REEF have entered circulation would result in a price rise.

Demand for REEF comes from its utility within the Reef Finance ecosystem. The token is required for paying transaction fees, securing the network, and governing the protocol. The staking rewards that participants earn for their role in governance and Reef Finance’s Nominated Proof of Stake consensus mechanism could incentivize more people to buy REEF for staking.

This demand should grow with the number of Reef Finance users. The project has already formed numerous partnerships, including with Aavegotchi, Akropolis, and Elrond. Future developments and integrations that drive adoption of the Reef network could positively impact the token’s price.

Live Reef Finance Value and Market Cap

The live Reef Finance value varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given REEF’s volatility, its current price can change by a large amount in a very short space of time. The market cap of Reef Finance is equal to the price of REEF multiplied by the number of REEF in the circulating supply.

Reef Finance Price FAQ

How is the price of REEF calculated?

REEF price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying REEF than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of REEF different on different cryptocurrency exchanges?

REEF’s price is based purely on trading as there is no standard global Reef Finance price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

How are REEF coins distributed?

Out of the total supply, 21% was distributed to investors, some of which unlocks gradually over the course of a year. Another 3% was allocated to the Binance Launchpool, 16% to the team, 17.5% to a specially-created foundation, and 12.5% for ecosystem development. The rest will be gradually released as protocol emissions and liquidity rewards until the end of 2025.

What will REEF be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of REEF. However, the price of Reef should grow with the number of protocol users. Future partnerships and integrations that drive adoption could therefore boost the token’s price.

Conclusion

Although REEF has only been on the crypto market for a relatively short time, its price has already been on quite a journey, especially on its first day when it traded from lows of $0.00125 to highs of $0.30. That journey hasn’t been smooth, however, as REEF’s volatility can lead to surges and crashes.

Many different factors have played a role in determining the price of REEF, including its deflationary supply, the level of demand for staking and paying transaction fees, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Reef Finance and cryptocurrencies!