Goldfinch (GFI) has been one of the top gainers of the day as the cryptocurrency amassed a growth of nearly 20%. GFI token has been on a steady downtrend during the past month as the bears had been going strong for it; however, the recent price movements show that the token has effectively reversed its trajectory and is now surging upwards. At the time of writing, the cryptocurrency stands at a price level of $3.71. The daily trading volume has also increased by 160%. GFI currently has a market standing of #784 with a growing capitalization of $18 million.
What is Goldfinch?
Goldfinch is essentially a cryptocurrency-based lending protocol that allows users to take out cryptocurrency loans without submitting any collateral in cryptocurrencies. The protocol makes use of a trust through consensus” mechanism which allows users to prove their credit performance apart from cryptocurrencies as well – using various types of assets as collateral.
Goldfinch is strongly focused on financial inclusion as it aims to make DeFi and crypto lending accessible for the masses – especially the underprivileged – which is why the project has a strong presence in India and African countries. The network is also regarded to be a missing puzzle piece of the crypto-based financial ecosystem.
Why is GFI surging?
The network has been trending on various platforms amidst strong technical movements. The GFI token has been a recent launch – entering the market in January 2022. Despite being new to the market, the token has grounded a solid footing in the market because of its underlying technology. As the cryptocurrency is flooded with new tokens almost every day, a general rule of thumb to differentiate good tokens from scams is to research their underlying technology. In the case of GFI, the Goldfinch network is highly valuable in the market and has been on a growing trend. The token is bound to climb upwards with the network’s success.
In the past month, Goldfinch recorded $7.3 million in repayments in its borrower pool – without any defaults. This is a testament to the level of trust and security that exists in the borrowing pools of the platform. Moreover, the GFI token is also now being supported by Anchorage and Coinbase. The growth trajectory of the network is phenomenal. In just one year, the active loans of the network have surpassed $78 million with more than 300,000 borrowers currently active on the network.
