According to new research from Alpha Sigma Capital, crypto lending platform Celsius Network is worth three times its current market capitalization, indicating the project’s massive growth potential over the next five years.
Alpha Sigma Capital calculated that the crypto company has an implied value of $3.13 billion based on 2020 financials obtained from Celsius. Which is roughly three times greater than its current market capitalization of $1.1 billion.
According to Alpha Sigma Capital’s analysis, “Celsius is currently undervalued,” referring to the company’s $126.14 million in revenue last year. Celsius appears to have significant upside potential based on current year-to-date growth.
According to Alpha Sigma Capital,
“Our projections are conservative for 2021. And we see AUM growth tapering off with another $3 billion in AUM growth by year end. From there, we project that the company will be able to grow AUM 25% year-over-year through 2025.”
Celsius’ AUM is to reach nearly $30 billion
Celsius’ AUM is expected to reach nearly $30 billion by the end of 2025. Adding exchange capability, which would significantly improve the platform’s usability, is one potential long-term growth driver for Celsius. Alex Mashinsky, the company’s CEO, has also hinted at the possibility of incorporating self-insurance options. Allowing users to insure their deposited funds.
The year 2020 remembered as a turning point for Celsius. The lending platform has seen a nearly 300 percent increase in users since January 2020. Celsius had paid out $250 million in cryptocurrency rewards to depositors by February 2021, up from $80 million in November 2020.
Despite the fact that decentralized finance, or DeFi, has dominated the crypto market since the summer of 2020, Celsius’ native token, CEL, has been one of the best performers. Unlike DeFi, Celsius provides a centralized platform for users to deposit and receive interest payments on their cryptocurrencies. There are currently over 40 interest-bearing assets available on Celsius, with yields as high as 18.5 percent.