Update 3.10.2021 Alpha Sigma Capital holds Celsius in its portfolio alongside more than a dozen other blockchain-focused projects.

Crypto lending platform Celsius Network is worth three times its current marketplace capitalization, underscoring the project's massive growth potential over the next five years, according to new research from Alpha Sigma Capital.

Using 2020 financials obtained from Celsius, Alpha Sigma Uppercase has determined that the crypto company has an unsaid value of $3.13 billion, which is approximately iii times greater than its current market place capitalization of $ane.ane billion.

It appears that "Celsius is currently undervalued," Alpha Sigma Capital said in its analysis, referring to the $126.14 1000000 in acquirement the company generated last year. Based on current year-to-date growth, Celsius appears to have significant upside ahead.

Blastoff Sigma Uppercase explained:

"Our projections are conservative for 2021 and nosotros see AUM growth tapering off with another $iii billion in AUM growth by twelvemonth end. From there, we projection that the visitor will be able to grow AUM 25% twelvemonth-over-twelvemonth through 2025."

By the finish of 2025, Celsius' AUM is expected to reach nearly $30 billion. One potential growth driver for Celsius in the long term is adding exchange adequacy, which would significantly enhance the platform's usability. CEO Alex Mashinsky has as well hinted at the possibility of incorporating self-insurance options that would permit users to insure their deposited funds.

2020 was a watershed yr for Celsius. Since Jan 2020, the lending platform has registered a well-nigh 300% increase in users. By February 2021, Celsius had paid out $250 million in crypto rewards to depositors, upwards from $80 million in Nov 2020.

Although decentralized finance, or DeFi, has hogged the crypto spotlight since the summer of 2020, Celsius' native token, CEL, has been one of the market place's best performers. Unlike DeFi, Celsius offers a centralized platform for users to deposit their cryptocurrencies to receive interest payments. Celsius currently offers over 40 interest-bearing avails, with yields as loftier as 18.five%.