Interest Rates History
“Sustainable Banking in the best interest of the Community!” That‘s how Celsius Network stands out against traditional banking and that‘s the way interest is earned, interest rates for coins are calculated and distributed to depositors weekly. In contrast to competitors, Celsius doesn’t burn venture capital money for artificial high rates. Interest rates for the most popular cryptocurrencies like Bitcoin are very volatile, just like prices. Due to this volatility, the rates that Celsius pays continually change to reflect what they earned the week before. Through distributing 80% of their lending revenue, or 95-100% on staking coins, Celsius offers the highest possible rates in a sustainable way. Keep in mind that rates can be up to 35% higher by utilizing CEL.
Community Growth Chart
The Network of Celsius is constantly growing, with an average of 4.3% per week since Celsius started to publish this data in their app in May of 2019. Without significant marketing by Celsius, their community has spread the word about the groundbreaking services and financial opportunities Celsius is offering them, growing the Network by around 800% in the first year.
Week over Week Growth of Celsius
The chart above shows the growth percentage over the previous week.
The more active users join Celsius, the more they can earn managing their assets, and the more they can give back to their Community to fuel the flywheel of growth and establishing a completely new understanding of banking with financial opportunities far beyond the means of traditional financial markets. One important tool to give back value to the Celsius community is the CEL utility token.
CEL is a utility token that provides its holders access to higher interest rates on the coins they hold, and lower interest rates on the loans they take. Celsius users are incentivized to buy and HODL CEL, since the loyalty program works in tiers.
The utility ‘flywheel’ of the CEL token is designed to provide CEL holders with the opportunity to participate in the growth and success of Celsius, which is set up in a way that draws value from all supported assets into the CEL token economy. As you can tell from the charts on this page, the company is growing rapidly and is showing no signs of slowing down. As Celsius grows its network, and more people choose to earn interest in CEL, more tokens will have to be purchased off of the open market by Celsius to pay interest to their users.
The value of the CEL token is derived from how many people are participating in the CEL token utility system. The token economic flywheels look something like this:
- More people join Celsius.
- More people choose to earn in CEL.
- Celsius has to buy more CEL from exchanges to pay interest to their new users.
- Buying pressure on exchanges rises.
Unlike most coins and tokens on the market today, CEL has real utility, and it is expected to get additional utility features as Celsius develops its token economics model over time. The value of utility tokens is derived from how useful they are, and how many people are taking part in the token economy. As that economy grows larger, the token becomes less and less dependent on price movement and sentiment of the crypto market as a whole, since it has actual utility to support its value, rather than speculation and hype.
Currently, CEL token adoption and the overall member-count of Celsius is still low, but rising steadily. As of early October 2019, Celsius has 12,500 depositors, 30% of which have opted to earn their interest in CEL. This continuous, ever growing buying pressure from interest payments supports the value of CEL.
CEL Buybacks on Exchanges
Every CEL token that is distributed as interest to Celsius users is bought from exchanges the week before. The more Celsians elect to “earn in CEL”, the more CEL Celsius has to buy, the more buying pressure the weekly buybacks add. According to Celsius, ~93% of Celsians hold their earned CEL rather than withdrawing and selling it.
CEL stored in the App
Every new customer needs to own at least one CEL, and every Celsian who is looking to unleash the full potential of the services Celsius provides needs to hold 10% of their portfolio value in CEL. With the solid growth of the Celsius community and with the customer deposits rising in value, the demand for CEL is gaining traction and reducing the amount of CEL stored outside of the app. The combination of a fixed supply and increasing demand is what will drive the value of CEL long term.