The Solana blockchain began to catch the attention of tech bloggers at the beginning of September 2021. Towards the end of August, Solana launched the Sunny Aggregator.
Let’s talk about what this means and whether it’s a good idea to invest.
What is SUNNY?
SUNNY is a yield aggregator powered by the Solana blockchain. A yield aggregator is something that cryptocurrency owners use in order to earn returns on their crypto deposits. In simpler terms, when you deposit or withdraw crypto, you earn returns in the form of tokens.
This process is called yield farming. You can earn on several farms in the Sunny network to get Sunny and Saber tokens as rewards. When you receive rewards, you need to claim, sell, or put them back into the farm from time to time, but it costs time and also requires gas fees. That’s where yield aggregators come in: they help you find farms with the highest yield and automatically shift your funds there.
SUNNY is a DeFi yield aggregator. Furthermore, it is also a composable. This means that the DeFi protocols are interoperable, they are able to exchange and utilise information. Other protocols and applications can also easily build on top of the Sunny Protocol.
What is the SUNNY token?
The SUNNY aggregator is owned by the Sunny Decentralised Organisation (DAO). Those who hold the SUNNY token, form the DAO, vote and decide what to do with the funds in the protocol.
The supply of SUNNY has an upper limit of almost 20 billion. When it was launched, 2 billion tokens entered circulation in less than a month! Initially, SUNNY was worth $0.009. By next week, the price had risen to $0.19.
SUNNY Token Price Analysis
SUNNY is currently trading at $0.07. On September 11, it was trading at $0.11; but since then, it has been in decline. Although it has shot up by about 30% in the past day, it is unclear whether it will continue to rise.
The price was climbing until September 10; it was recovering very quickly after a sharp decline two days before. But since then, it has been on a steady decline. The current price, by the way, is now pretty close to the extreme low of September 8: $0.05.
After analysis, SUNNY does not look like a good short-term investment, but it is expected to steadily increase in the long run. For example, it is predicted to be worth $0.12 in 2022 and $1.98 by 2030. Assuming that there are no significant disruptions in the market, you can buy now and expect to make a profit in ten years or less.
How do you know if the price predictions are accurate?
There are some criteria that you can consider, like developer activity and market performance; developer activity peaked in July and is also peaking in September as well. But SUNNY’s market performance, measured in terms of 30-day returns, is lower than that of other rivals.
How can I buy SUNNY tokens?
While most DeFi tokens have an Initial Coin Offering, the SUNNY token did not have one. SUNNY is available for sale on Binance, Gate.io, MXC, Serum DEX and XT. They can’t be bought with fiat money, so you’ll need to exchange it for another major cryptocurrency. Another way to obtain SUNNY tokens is by yield farming on the SUNNY network.
Whilst technical analysis can help to gauge the value of an investment, we must bear in mind that the cryptocurrency market is highly volatile – it is only ever a good idea to invest if you can afford to take a loss on a risky investment.