In the past couple of days, the price of Bread token (BRD) has rocketed to its highest point in years, breaking the 2021 high set by price spikes just over a week ago. From what appeared to be a resistance level at around $1.22 AUD on December 1, BRD’s value shot up to a peak of approximately $2.20 AUD in the span of 24 hours, a rapid increase of almost 100%, before settling back down in the $1.60 AUD – $175 AUD range.
But what is Bread, and what’s causing its price to blow up?
Originally known as Breadwallet, BRD is a tech company that specialises in providing cryptocurrency holders with a simple and secure way to store their digital assets. Since launching the first truly decentralised iOS wallet app in 2014, BRD has amassed more than 10 million Android and iOS users, building a reputation as a market leader that prioritises ease-of-use and robust security for its users, whilst also remaining free to download.
The BRD token itself, based on the Ethereum blockchain and released in 2017, is integral to the BRD rewards program which provides users of the platform with incentives to promote beneficial activity. For example, keeping a certain value of assets stored in the wallet can be incentivised through in-app rewards like transaction fee discounts and Ethereum network fee reductions.
But, you may be asking, what’s causing renewed interest all of a sudden?
Bread’s price rocketing is likely the result of BRD’s official announcement of its acquisition by crypto giant Coinbase, the largest US’s largest cryptocurrency exchange. This was likely perceived by investors to be a major sign of BRD potential future growth and further integration as a major industry player, which will now be bolstered by the extensive influence and resources of Coinbase.
In the announcement, BRD co-founders Adam Traidman and Aaron Voisine stated: “members of our team will be continuing our mission at Coinbase, where we will work together to bring the power of decentralization to even more users around the globe.”
The prospect of millions of new users joining BRD through the acquisition creates the possibility that BRD tokens will experience even more demand, as new BRD customers would logically want a token in order to receive the benefits of its rewards program. It seems that many recent investors are counting on Coinbase’s plans for BRD’s expansion being successful, and as a result, the anticipation of that potential reality is seemingly a major factor that has contributed to its sustained elevation in value.
A suggestion to “stay tuned for more details to come in 2022” on their website may also be a contributing factor, signalling to BRD buyers that further announcement frenzy may send its price even higher next year.
Whether its current price levels will be maintained by anticipatory hype is yet to be seen, but the trajectory of BRD, with its recent developments, will be worth paying attention to in 2022.
Disclaimer: This article is intended for informational purposes only. This is not financial advice. Never invest more money than you can afford to lose into any crypto.