Why Celo Is So Cheap?

Last Updated January 24th 2022

7 Min Read

Will the price of Celo rise any time soon? Well, there are several things that might be keeping Celo's price low.

For starters, it's still very new on exchanges. The token started trading only in late-May 2020, which is less than 2 years ago. Secondly, the actual usage of the token is still very low, and there aren't many uses cases for CELO tokens.

Currently, most transactions are moving on sites such as Ripple network (XRP), which makes it hard for CELO to come above the water. However, despite the low price, the market cap of Celo is actually pretty high, close to $2 billion. So most likely, the price will rise in the near future.

To get a better picture of why CELO's price has remained relatively low, let's look back at its historical price performance.

CELO Price History From 2020 To 2022

CELO began trading towards the end of May 2020 at a price of $2.5 per token.

In late August 2020, this had risen to $4.5 per token before dropping back down to around $2.1 by mid-September 2020. This means that within five months, the price increased almost two-fold from its starting point - a good return for investors in that period.

However, in early October, the price fell again and continued to decline until the end of 2022, when it was trading at as low as $1.3 per coin.

Most of this decline was attributed to a general bear market which saw prices fall throughout the crypto industry overall. The fact that CELO was new and highly unstable at the time might have also contributed to this decline.

Fortunately, at the start of 2021, a bull market rolled in, and most cryptos, including Celo, saw their prices surge again. By mid-February 2021, the coin had crossed $5 per coin. It then fluctuated and went as low as $3.2 during the last week of March before rising again to $6.3 in late April.

Celo continued scaling the charts with some fluctuations on the way. On August 30, 2021, it reached its current all-time high price of $10.66 before dipping to as low as $4.2 within a week.

In late September, the coin went back to as high as $7.6, then fluctuated slightly until the end of October. At the start of November, CELO began dropping again and went as low as $3.5 in mid-December. It managed to recover and cross $4 in early January 2022.

At press time, CELO is trading at $4.5 with a market cap of $1.6 billion, making it the 68th most valuable cryptocurrency by market cap.

Why Is Celo (CELO) Token So Cheap?

As we already mentioned, there are several factors that might contribute to this situation.

However, before we dwell on these factors, keep in mind that a low price does not necessarily mean that the coin has low value. For once, CELO has a market value close to $2 billion, making it the 68th most valuable cryptocurrency.

With more than 8,000 cryptocurrencies in the market, you can see that CELO holds a rather respectable position. Having said that, here are some of the factors that might be keeping CELO's price cheap.

A Low Liquidity

Since the CELO token isn't listed on many major exchanges, it's not among the most liquid tokens in the market.

That means for someone who wants to sell a large amount of CELO, it's much more difficult, and there's likely less demand; making the price drop.

This is also why newly issued tokens tend to be traded at steeper discounts as they aren't as liquid as established coins like Bitcoin (BTC) or Ethereum (ETH).

Still New in the Market

Most new coins have trouble scaling price charts since the attention is directed towards well-established tokens.

CELO, therefore, is at the mercy of investors' appetite for risk - something that's likely to be reduced when the market remains volatile as it has been during the past months.

Once CELO matures in the market and continues to gain more attention, we might see its price start rising again.

Low Demand for CELO Tokens

Celo is still alien or even unknown by many people since most of its publicity is limited to crypto-related sources or insiders.

Another reason for low demand might be that Cel is more of a payment transfer system - a channel through which payments can be made from and to any phone number in the world- than a utility token.

This means that there's no incentive for holders to accumulate CELO coins, which in turn means very low demand for the token.

Current Negative Market Sentiment

A low price might be an indication that the market has yet to appreciate Celo's potential.

There is also currently a market-wide negative outlook, which is keeping most coin prices down.

Therefore, in the event of a bull market, CELO price might skyrocket - potentially by several hundred per cent.

Check Out: How To Make (Or Lose) Money With Celo?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Should I Buy Celo (CELO) Tokens While It Is Still Cheap?

Definitely.

You can buy CELO tokens at lower than $5 per token, making it one of the cheapest cryptocurrencies on the market right now.

Since new tokens are often issued at very low prices, this is an excellent opportunity to accumulate more CELO tokens while they're still cheap - considering that its price might increase several-fold when Celo becomes more widely known and appreciated by investors.

Also, keep in mind that CELO is already valued at close to $2 billion dollars which means there's significant room for growth.

The Celo team is also working to provide an infrastructure with the potential to unify payment systems worldwide, creating a new vision of how cryptocurrencies can be transferred globally using simple phone numbers.

This in itself might attract more attention to CELO in the long run - generating even bigger interest and probably much higher demand, which means that you might want to accumulate as many tokens as possible before this happens.

There is also the possibility of the crypto market in general rebounding, leading to a significant increase in CELO price.

Is Celo (CELO) Token Worth Buying?

Definitely yes, since it's currently valued at $4.5 per coin, representing a significant discount compared to future potential.

Of course, the only way to know for sure is to wait and see how things play out in the near future.

While there are some possible reasons for Celo's low token price, it hasn't stopped the project from being valued at$1.6 billion.

This means that one day this value can multiply several times - creating a great opportunity in a market still in its infancy.

For instance, Gov Capital predicts that CELO might go as high as $110 per coin by January, which means if you buy now, your investment will grow by 2,344% in the next five years.

Even better, Priceprediction.net believes that CELO might cross $200 in the next 10 years, which means even bigger profits.

Don't Miss: Celo Price Predictions

Will Celo (CELO) Token Bounce Back?

The answer to this question will come from the market itself.

If there will be more positive news, if investors will start believing in blockchain again or if Bitcoin's price will increase, leading to a bull market, then CELO might also see its price go up.

However, until that happens - it is expected to stay cheap while the market remains bearish.

But if you think that there's a chance for the market to rebound, then buying cheap tokens like CELO might be an excellent opportunity to accumulate more of them and wait for the bull run.

Otherwise, from the predictions we have seen, CELO might rebound and even cross $100 per token in the next five years.

Conclusion: Why Is Celo (CELO) Token Cheap?

CELO's low price is the result of several factors. These include low demand caused by lack of awareness and unfamiliarity with the project itself, negative sentiment in the market, the lack of incentives for holding CELO tokens and some other factors.

If these negative factors are to decrease or disappear soon - as they have happened with other cryptocurrencies in the past, then it's very likely that many investors might consider buying Celo tokens while they're still discounted.

This would predictably lead to a significant increase in its price, potentially leading to profits of several hundred per cent.