Last Update: January 14th, 2022

TIME/USD – Forecast Summary

Recent Price Changes

Why Invest in Wonderland (TIME)?

The rewards offered by Wonderland make it a viable investment opportunity. Daniele Sestagalli developed the protocol as a fork of Olympus DAO. Avalanche enables the protocol’s nodes to validate and process transactions simultaneously, with a random polling process. TIME, its native token, powers the platform’s operations and utility. Wonderland supports the staking and the minting of tokens. Every staked unit is automatically increased every eight hours, on the basis of a given Annual Percentage Yield. Minting is the process that allows users to provide liquidity for a specific period, in return for discounted TIME tokens.

The users who stake TIME tokens profit from the distribution of newly minted tokens. The reward has a compounding effect but is subject to price fluctuations. In the process, the users who mint the tokens get a fixed return in the future, that is paid in TIME tokens. The process is dependent on the token price at the time of maturity. Also, users can stake TIME tokens to earn more of them. A collection of assets supports each token unit in the network’s treasury, giving it an intrinsic value that it cannot fall below. When the token falls below the intrinsic value, the treasury repurchases and burns the tokens to maintain the target price. The treasury consists of MIM and other liquidity tokens. Wonderland currently has a treasury balance of $883 million, and a total value locked of $1 billion. 

Besides this, Decentraland investors also enjoy the benefits of belonging to a Decentralized Autonomous Organization, dubbed DAO. DAOs enable users to participate in decision-making on developments on the network. Users can also stake tokens in a DAO protocol and get rewards. As one of the leading DAO projects, the views, and opinions of the Wonderland community matter. This aspect of decentralization is what sets Wonderland apart from other venture capital firms. For the VCs, decisions are made by the private investors, in collaboration with the boards, rather than the users. Thus, Wonderland could succeed if it successfully brings in decentralization in decision making, which is currently limited in traditional finance. 

Furthermore, Wonderland presents a viable opportunity for investors seeking to opt-out of the traditional financing models. It achieves this by facilitating investment by protocols in the early stages, by giving them access to funds and ideas within an active community. The protocol has already invested $18.337 million in BSGG, the native token of BetSwap.gg, from its growing DAO treasury. BetSwap is a decentralized, open-source, peer-to-peer cryptocurrency betting platform. Wonderland users also called the frog nation, who stake assets, receive BetSwap tokens in return. So far, around 2 billion BSGG tokens have been allocated, amounting to $18.3 million worth of wMEMO, which is a tradable token representing the number of token TIME users have staked. This method of financing is revolutionary, and unlike traditional venture capital, where, among other restrictions imposed by investors, firms are often required to demonstrate a track record before accessing financing. Thus, Wonderland’s immense value proposition to early-stage projects is contributing to its fast expansion. 

As part of its growth strategy, Wonderland seeks to invest in other decentralized finance protocols from user-staked funds in the future, in a diversification push that could bring greater returns to the users. As to whether Wonderland can compete with VCs for fund allocations, platform creator, Daniele Sestagalli, says the community-led approach to decision-making could enable Wonderland and other DAOs to get better deals. Although it is early to speculate whether Wonderland and other DAOs can flip VCs in capital allocations, it is clear that the growing decentralization of finance will give traditional financing a run for their money. 

Wonderland Price History

Wonderland (TIME/USD) is a relatively new entrant into the crypto industry. The token was trading at around $880 in March 2021, with a daily trading volume of above $50 million. TIME/USD settled into a bullish momentum of higher highs and higher lows, reaching $6,857.15 on September 24, 2021, with a daily trading volume of $23.9 million. The surge led to a gain of more than 679% in seven months. TIME/USD retraced to $2,236.04 on September 28, 2021, with a 24-hour trading volume of $5.6 million. It shed 206% in just four days, and the pair then rallied to a high of $8,496.09 on November 10, 2021, with a daily trading volume of $51.77 million. 

TIME/USD began the last quarter of 2021 trading at $3,780 on October 1, 2021, with a daily trading volume of $20.47 million. The pair surged to an all-time high of $9,789.33 on November 7, with a 24-hour trading volume of $70.74 million. The upward momentum led to a gain of more than 150% in about one and a half months. TIME/USD remained in a consolidation pattern before plunging to a low of $2,975 on December 15, 2021. The pair is currently trading at $3,281.65, with a daily trading volume of $71.40 million.

TIME/USD Live Chart

Introduction to Wonderland

Wonderland is a decentralized reserve currency protocol built on the Avalanche ecosystem. Daniele Sestagalli developed the protocol as a fork of Olympus DAO. Avalanche enables the protocol’s nodes to validate and process transactions simultaneously, with a random polling process. TIME, its native token, powers the platform’s operations and utility. Wonderland supports the staking and the minting of tokens. Every staked unit is automatically increased every eight hours, depending on a given Annual Percentage Yield. Minting is the process that allows users to provide liquidity for a specific period, in return for discounted TIME tokens.

The users who stake TIME tokens profit from the distribution of newly minted tokens. The reward has a compounding effect, but is subject to price fluctuations. In the process, the users who mint the tokens get a fixed return in the future, that is paid in TIME tokens. The process is dependent on the token price at the time of maturity. It is projected that Wonderland will become a decentralized autonomous organization that allows users to vote on the development of the network away from the current system, where the core team is at the center of all decisions.

There are 55,994 self-reported circulating TIME tokens from a total supply of 184,350, and there is no available maximum supply. Wonderland is ranked as the 2,811th cryptocurrency, with a market capitalization of $210,610,171. Users can stake TIME tokens to earn more of them. A collection of assets supports each token unit in the network’s treasury, giving it an intrinsic value that it cannot fall below. When the token falls below the intrinsic value, the treasury repurchases and burns the tokens to maintain the target price. The treasury consists of MIM and other liquidity tokens. Wonderland currently has a treasury balance of $883 million, and a total value locked of $1 billion. 

Factors Promoting the Adoption of Wonderland

Return on Investment

Investors can invest in Wonderland via staking or bonding processes. The staking option allows the accrual of TIME tokens over the duration of the stake. The auto-compounding effect increases the number of tokens held, based on the applied Annual Percentage rate. The APY should be enough to counter a fall in the price of TIME. As long as the annual percentage rate remains competitive, more investors are likely to join Wonderland, pushing the price of TIME to the upside. The surging interest surrounding decentralized finance, which is driving the growth of the sector, is also a factor in the adoption of Wonderland.

The Rising Demand for Stablecoins

TIME aims to solve the shortcomings of the dollar-pegged stablecoins, in the case of depreciation in the dollar. Stablecoins are gaining popularity in the cryptocurrency space, as investors look for digital assets that can preserve value in the face of volatility. TIME aims to maintain its purchasing power, regardless of market volatilities. The protocol achieves this by focusing on the supply side of the digital assets and not the actual price appreciation. If Wonderland delivers on its promise to create an alternative to the dollar-pegged stablecoin, the price of TIME would hold steady and grow exponentially.

Factors Hindering Adoption

Regulatory Risks

The entire cryptocurrency industry faces dynamic regulations. Different jurisdictions across the globe are moving to develop laws that control the emerging digital assets. The demand for stablecoins has turned them into an important asset class. Countries like the US are pushing for policies that are  similar to that of the financial institutions, to control the issuers of stablecoins. Laws on data security, aimed at protecting the assets in DeFi protocols, are important to the adoption of Wonderland. If the laws and regulations set are unfavorable to Wonderland, then the adoption would be affected, and the price of TIME could retrace.

Governance Risks

The Magic Internet Money, an interest-bearing token managed by Abracadabra.money, backs Wonderland’s TIME. The backing is at a ratio of 1:1, and the protocol buys back and burns TIME when it trades less than 1 MIM. For Wonderland to remain attractive to investors, it must maintain its functionality and offer better returns for investors. If the Annual Percentage Yield falls, the price of TIME will also fall as a result. A change in market sentiment could also affect the adoption of Wonderland.

TIME/USD Technical Analysis – The Rebound is Happening

Being a relatively new coin in the market means limited price history for TIME/USD, which makes it difficult to clearly observe several levels. However, data from Coinmarketcap shows that TIME/USD is rebounding from a low of slightly above $3,000 reached, in mid-December 2021. At the current price of around $3,281, TIME/USD is correcting to the downside, from a high of above $4,250 on December 26. The pair could proceed to touch $3,000, which is turning into support, before going higher. 

Oversold TIME/USD looking to rebound from $3,000

From the chart above, we can see that TIME/USD is establishing a support zone at $3,000. If $3,000 holds, we could see a fresh bullish momentum that will take the pair higher. Potential resistances will be at $4,400, $5,000 and  $6,000. We are optimistic that the pair will hit $6,000 in 2022, as long as the $3,000 support holds. $6,000 is still a conservative projection, as any strong moves could see TIME/USD reach its previous ATH in the second half of the year. Other potential resistance zones are $8,200, $8,500,  $8,800 and $9,500.