Stablecoins and their use in decentralized finance (DeFi) have played a central role in the 2022 cryptocurrency bull market place considering they allow investors to participate in the ever-growing number of protocols that offer loftier yield staking pools and they ease the process of transacting without needing to utilise a centralized exchange.

Ane project that has seen a pregnant corporeality of adoption thanks to its focus on creating a truly decentralized ecosystem and asset-backed stablecoin is the Alchemy.money DeFi protocol and its native SPELL token.

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $0.0114 on Oct. 15, the cost of SPELL rallied 178.55% to plant a new tape loftier at $0.035 on Nov. ane equally its 24-hour trading volume spiked to $109.82 million.

SPELL/USD iv-hr chart. Source: TradingView

Three reasons why SPELL is attracting the attention of DeFi users are the growth of Magic Internet Money (MIM) as a fully decentralized, cross-chain capable stablecoin, numerous cross-concatenation integrations that have expanded the MIM and SPELL's achieve throughout the ecosystem and the token's governance and tokenomics structure.

Decentralized stablecoin growth

One of the biggest factors alluring the attention of agile DeFi users is Abracadabra'due south native Magic Internet Money stablecoin, which is fully collateralized and minted by depositing interest-begetting assets on the DeFi protocol.

The growing popularity and adoption of MIM tin be seen by the increasing total value locked on Abracadabra, which reached a record $4.15 billion on November. i according to information from Defi Llama.

Total value locked on Alchemy.money. Source: Defi Llama

There has also been steady growth in MIM'due south circulating supply, which stands at $1.933 billion according to data from CoinMarketCap. The nigh contempo expansion is in large part due to the expansion of assets that can be pledged as collateral to mint MIM, which now includes popular tokens such equally Shiba Inu (SHIB), FTX Token (FTT), wrapped Olympus (OHM) and Fantom (FTM).

Cantankerous-chain integrations extend SPELL's accomplish

A second reason investors are taking a closer expect at SPELL is its expanding ecosystem, which has recently added cross-chain support for multiple blockchain networks, including Fantom and the Binance Smart Chain (BSC).

BSC is the nearly recent addition to the Abracadabra ecosystem afterward the community voted to add back up for the network in a vote that closed on October. xxx.

Other blockchain protocols currently supported by Abracadabra include Ethereum, Arbitrum and Avalanche, and the platform also benefits from multiple cross-protocol partnerships, including integrations with Convex Finance, Yearn.finance, Bend Finance and SushiSwap.

Related: Magic Internet Money races past $1B, sets sights on MakerDao

Favorable tokenomics and a decreasing circulating supply

Some other cistron catching the eye of DeFi investors is the tokenomics structure of SPELL, which includes governance votes on emissions to command inflation.

The squad behind SPELL regularly monitors the emission schedule across the various DeFi pools in its ecosystem to ensure that new tokens are being minted and utilized in the most beneficial manner for the protocol and holders.

Due to increasing adoption and the uptick in price, a big number of tokens originally set to be minted are no longer needed, so the team has decided to decrease the emission schedule by 20% beginning on Nov. 1. This finer removed 8.7 billion SPELL tokens from the electric current circulating supply.

Going forward, the outlook for the projection remains bullish, and the team as well has plans to further integrate SPELL and MIM to the Fantom ecosystem and also offering new staking opportunities in Arbitrum and Avalanche.

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