Bonfida (FIDA), a product that creates a user interface, API, and data analytics for the Serum DEX, contributes to the development of new standards in the implementation of a community-centric approach.
What Is FIDA?
Bonfida aims to effectively challenge Ethereum’s dominance in the DeFi segment. In particular, Bonfida effectively reveals the hidden potential of Solana data analytics that can be successfully applied to trading and strategic decision-making. By integrating the latest analytical innovations with DEX operations, the maximum outcomes can be achieved in this regard. The Bonfida API tends to become especially popular among users, indicating the impressive 25% per week growth. The recent trends provided by CoinMarketCap indicate that FIDA is among the most popular tokens in the market. Bonfida also provides the maximum flexibility for traders in terms of analyzing data and creating individual strategies that allow finding the optimal balance between the expected gains and potential risks. Moreover, the net fees are covered by 95% by the FIDA token.
FIDA’s current market price equals $0.5296 with the circulating supply of 44.7 million tokens. The maximum supply is 1 billion tokens; therefore, a significant 96% increase in the total supply of tokens is possible in the following years. FIDA reached its historical maximum close to $11 at the beginning of November, 2021 that corresponds to the peak reached by BTC, ETH, and other major cryptocurrencies. FIDA rapidly declined by 95% within the following months as the “crypto winter” significantly affected the scope of trading and returns generated by the major market participants. However, the expectations of the crypto market restoration also stimulate the higher demand for FIDA in the recent weeks.
Figure 1. Bonfida’s Promotion Poster. Data Source – Arover
Investing in FIDA: Pros and Cons
The long-term demand for FIDA among traders and other members of the crypto community will largely depend on the following major factors: the competitive positions of Solana as compared with other blockchains; the effectiveness of Bonfida’s algorithms in predicting trading signals; and the overall state of the crypto market. In case the restoration of the crypto market’s capitalization successfully continues in the following months, FIDA has high chances of significantly appreciating at high rates. The major risks refer to the emergence of alternative analytical solutions that can be successfully integrated with Solana or other blockchains. Therefore, technical analysis may assist in making better-supported investment decisions.
Figure 2. FIDA/USD (3-Months); Data Source – CoinMarketCap
The major support level is observed at the price of $0.25 that serves as a strong support for the FIDA token that corresponds to the local minimum of the past several months. There are also two major resistance levels that should be overcome in order to ensure the token’s rapid appreciation in the following weeks. The first one is at the price of $0.65, and the second one is at the price of $0.80. Only in case both of these levels are overcome, investors can legitimately open long positions with the expectation of reaching local maximums. Overall, FIDA has a strong market potential for demonstrating the price dynamics above the average level in the market.