CEL, the native token of the Celsius network, has recently been generating buzz in the wider crypto industry, with a staggering 370% price increase over the past week. The price increase can be largely attributed to the token’s recently initiated massive burn, which has further fueled market optimism for the token, supported by other bullish market statistics.

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Celsius Network Destroys 94% of Supply

Data from the global crypto industry indicates that the Celsius network destroyed a staggering 652.2 million CEL tokens by transferring them to empty addresses on April 30. The large number of tokens destroyed means that 94% of the total supply of CEL was wiped out, injecting huge bullish sentiment into the token.

After the massive burn, the total supply was reduced from 692.8 million CEL to 40.6 million CEL, leading to a price increase. This price increase gradually gained a lot of traction, causing the token to rise by about 370% in a week.

It is worth noting that this massive cash burn was part of the company's filing for bankruptcy protection.

Furthermore, what is unique about Celsius’s price surge is its defiance of current broader market trends. Despite heightened market volatility, on-chain data highlights Everbright’s bullish stance, illustrating the market’s upward trend and further strengthening the token’s appeal to cryptocurrency market participants.

CEL price changes and derivatives data

As of writing, Celsius price has increased by 40.10% in the past 24 hours and is currently trading at $0.7185. The coin has surged 40.10% in market cap and has seen a 14.48% increase in 24-hour trading volume.

Coinglass data shows that CEL futures open interest grew 72.01% to $13.69 million, while its derivatives trading volume surged 26.62% to $319.09 million. This further highlights the existence of an upward trend in the market, which may be driven by rising investor interest and increased trading activity in the token derivatives market.

Meanwhile, the RSI is hovering around 80, suggesting that the asset is in overbought territory. This sets the stage for a potential price pullback or correction as it may have risen too fast.

Technical indicators indicate strong buying sentiment for the coin, further suggesting that if buying pressure persists, a near-term rally could be in the cards. However, the RSI continues to cast a shadow over the coin’s long-term price action.

About Celsius Network

Celsius Network is a centralized finance (CeFi) platform co-founded by Alex Mashinsky, Daniel Leon and Nuke Goldstein in 2017. As an innovative cryptocurrency lending platform, Celsius focuses on providing users with comprehensive banking and financial services to enable them to obtain stable returns in the crypto economy.

The core features of the platform include providing users with the ability to overcollateralize loans, lend at lower interest rates, and earn high interest on deposited crypto assets. In addition, Celsius also provides fiat currency entry and exit services, as well as digital wallets for daily payments. Users mainly complete various operations through the mobile application developed by Celsius, which supports up to 33 different cryptocurrencies.

Celsius' business model is based on attracting user deposits and earning high interest rates, while lending these deposits to institutional clients to generate income. This model was a huge success in the early days of the platform, but it also exposed the platform's shortcomings in risk management. In July 2022, Celsius had to file for bankruptcy protection due to a serious financial crisis.

In the Celsius ecosystem, the $CEL token plays a vital role. This native token is not only used to increase the yield on deposits and obtain discounts on loan interest, but also qualifies holders for various loyalty levels and enjoy additional benefits. The platform claims that it uses 80% of its revenue to provide users with high interest returns and low borrowing costs, thus ensuring the maximization of user interests.

In addition to lending and deposit services, Celsius has also entered the Bitcoin mining business to further diversify its revenue sources. Nevertheless, with the volatility of the crypto market and the changes in the economic environment, Celsius has faced increasing challenges, which eventually led to its bankruptcy and reorganization. After a series of legal and financial restructuring, Celsius is currently seeking to regain the trust and support of the market through strategic adjustments.

In general, Celsius Network has gone through a journey from its early glory to its subsequent bankruptcy challenges, reflecting the dynamics and uncertainty of the crypto market, while also demonstrating the potential influence and risks of CeFi platforms in the modern financial ecosystem.

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