Canto (CANTO) Crypto Token Soars 720% in January: Possible Reasons

Canto (CANTO), a DeFi-focused Layer 1 blockchain, was in the spotlight last January. It seems that its popularity should be attributed not only to an attractive narrative and aggressive community, but also balanced tokenomics, a thriving ecosystem, and a couple of hard-coded DeFi-native innovations into its design.

What is Canto (CANTO) and how does it work?

Launched in Q3 2022, Canto (CANTO) is a layer 1 blockchain running on the Ethereum Virtual Machine (EVM). It combines cutting-edge developments of Web3 technology: Canto (CANTO) leverages Tendermint consensus, relying on its ecosystem of validation nodes and EVM execution layer built on Cosmos SDK.

At its launch, the first contributors to Canto (CANTO) (“Settlers”) unveiled a toolkit of free applications for Canto (CANTO) enthusiasts, the so-called Free Public Infrastructure (FPI). Canto FPI (CANTO) includes Canto DEX, a zero-fee decentralized cryptocurrency exchange, a native DeFi Canto Lending Market (CLM) that is a fork of the battle-tested liquidity machine Compound v2, and NOTE, a USDT and USDC soft-pegged stablecoins.

Canto (CANTO) prioritizes decentralization and permissionlessness as its core values: Blockchain supports rent-mining resistance, treats all injected liquidity as a “public good,” and attempts to minimize the “ user capture”. All operations can only be settled through third-party aggregators for maximum user acquisition.

Canto (CANTO) is supported by a powerful team of blockchain veterans: Scott Lewis of DeFi Pulse and the founders of Slingshot Crypto and Plex are spearheading its development.

The price of CANTO increased 8 times in the month: why?

Canto’s main native asset of the same name, CANTO, fell to an all-time low on January 2, 2023: the price briefly dipped below $0.069. However, over the next 30 days, it demonstrated a huge run above $0.571.

This rally coincided with notable increases in development activity on the blockchain, TVL in Canto-based protocols, and trading volume for CANTO. This rally could be attributed to the balanced tokenomics of the project: it has no foundation, no VC support, no maturation and no pre-sales. This means that nobody can trigger selling pressure and no team is interested in price manipulation.

Furthermore, Canto (CANTO) has released an impressive incentive mechanism, Contract Secured Revenue (CSR): DeFi builders can get up to 30% of the commissions collected from the operations of their protocols.

This fact immediately attracted the creators of Web3 to the Canto (CANTO) ecosystem. For example, third-party teams have already created Canto-based versions of all the top-tier NFT collections, including the likes of Bored Ape Yacht Club, Crypto Punks, and so on.

What is the future of Canto (CANTO)?

Furthermore, Canto (CANTO) has its own decentralized bridge for ERC-20 tokens and a native staking module. As such, its contributors have created multiple catalysts for public interest.

Right now, the Canto team (CANTO) is organizing a hackathon to attract a new generation of Web3 developers to use the platform as the technical foundation for their dApps.

Canto (CANTO) has already booked its place in the top rankings of the largest blockchains in the Cosmos (ATOM) ecosystem, along with Kava (KAVA) and Osmosis (OSMO).