Do you see LEO with a price of $1?
This is something that we reached at one time. It is something that many sit and cannot foresee. As always, it is because people project themselves onto markets.
The reality is most do not feel worthy of big money, whatever that number is to them. They either find it unbelievable or out of their reach.
Obviously, $1 for the LEO token would really make the lives of many people difference. For example, 25K LEO is a ffair bit of money in much of the rest of the world.
That aside, is this unrealistic? How far away are we from a price of $1?
In my estimation, not much is required. Considering the market capitalization at that level, it doesn't seem all that outrageous.
Multi-Million Dollar Platform
When the price of something is in the basement, it is easy to believe there will be no appreciation. However, if we look at this logically, we can see how low a bar $1 really is.
Here is a snapshot from Hive-Engine detailing the supply of LEO. We will operate under the presumption it is somewhat accurate. Even if it is off by a couple hundred thousand, the point will still be the same.
There is a total supply of near 14.5 million. This means that $1 LEO would provide a market cap of $14.5 million. Naturally, this is if it happened quickly. We know there is continuing incentivication through the inflation rate. That means more LEO are hitting the market each day.
For our purposes, we will add another 10 million to the total. This will give us a big of flexibility, totaling 25 million Leo.
So now the question is whether this platform can have a value of $25 million? If the answer is yes, then we can see $1 LEO.
User Base
We will estimate there are roughly 500 monthly active users. This is an estimate of where we presently stand. Again, it works for our purposes in doing some calcuations.
Based upon the above chart, we see a $750K market capitalization. To achieve $25 million, we would need to see a rise in price of 33 times. This is larger than the move from 5 cents to $1. The reason for the difference is because of the additional tokens that will be distributed.
Therefore, we will use the ration of 33x times growth to get the Leo platform to $25 million.
Based upon the 500 monthly users, we simple do a bit of calculation. This puts us in the neighborhood of 16,500 users.
All things being equal, increasing the number of users to this level will have the ability to push LEO to $1.
Of course, we cannot presume that everything will be equal.
Expansion of Applications
The key is building. Here is where Leofinance is one of the Web 3.0 platforms that is excelling.
We know the Leofinance team is dedicated to building out the applications. We are awaiting the alpha release of the new UI which is going to focus upon LeoThreads. This is a major step forward in the opinion of Khal who has dropped screenshots on a number of occasions.
One of the benefits of an applications like this is that it becomes a feeder system to the rest of the platform. The Everything App idea requires the merging of social media and finance. Leofinance is already in both areas and looking to keep improving.
We are going to see layer 2 smart contracts tied to Hive during 2023. I have a feeling Leofinance is going to be able to leverage this for greater gains.
How Will $1 LEO Change Your Life?
It is likely that we do see LEO priced at $1. We are expanding the platform in many different ways. Adding at every layer is going to pay major dividends. We can see how it is all interconnected.
Leofinance is not operating in a vacuum. Nothing in blockchain does. This means that advancements in the overall ecosystem equates to progress in Leofinance.
Taking the long term view of Leofinance is vital. We do not need this price move to happen next week or month. Nevertheless, we are going to see it in the next couple years.
The first goal is 5,000 users which is being worked upon now. After that, it will only require another tripling and LEO will be on the road to much higher levels.
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