The Celsius Network crypto lending platform is three times its current market capitalization and, according to new research from Alpha Sigma Capital, underscores the enormous growth potential of the project over the next five years.
Alpha Sigma Capital, using financial data obtained from Celsius for 2020, determined that the crypto company has an implied value of $ 3.13 billion, roughly three times its current market cap of $ 1.1 billion.
It appears that “Celsius is currently undervalued,” said Alpha Sigma Capital in its analysis, referring to the company’s $ 126.14 million in revenue last year. Based on the current growth since the beginning of the year, Celsius appears to be on a clear upward trend.
Alpha Sigma Capital stated:
“Our forecasts for 2021 are conservative and we see AUM growth slowing with further AUM growth of USD 3 billion by the end of the year. From there, we expect the company to grow 25% year over year by 2025. “
Celsius’s AUM is projected to reach nearly $ 30 billion by the end of 2025. A potential growth driver for Celsius in the long run is the addition of exchange capabilities, which would greatly improve the usability of the platform. CEO Alex Mashinsky also pointed out the possibility of including auto insurance options that users can use to insure their deposited funds.
2020 was a turning point for Celsius. Since January 2020, the credit platform has seen an almost 300% increase in users. By February 2021, Celsius had paid out $ 250 million in crypto rewards to depositors, up from $ 80 million in November 2020.
Although decentralized finance (DeFi) has been in the crypto spotlight since summer 2020, Celsius’ native token, CEL, is one of the best performers in the market. Unlike DeFi, Celsius offers a centralized platform where users can deposit their cryptocurrencies to receive interest payments. Celsius currently offers over 40 interest-bearing assets with returns of up to 18.5%.