Valuing the TerraM token in 2024 involves analyzing its underlying assets, performance metrics, and strategic initiatives. TerraM is the native token of the TerraMatris crypto hedge fund, with a total supply of 10,000 tokens.
Each token represents a 1/10,000th share in the fund, providing investors exposure to a diversified range of assets and strategies.
As of November 2024, the TerraMatris fund has demonstrated significant growth, achieving a year-to-date increase of over 930%. This impressive performance is primarily driven by focused options trading strategies on major cryptocurrencies such as Bitcoin and Ethereum.
The value of TerraM tokens has shown steady appreciation, starting at $1.08 in early 2024 and reaching approximately $1.66 in November. The fund aims to close the year near $2 per token, setting TerraM’s overall valuation around $20,000.
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Looking ahead to 2025, a target of $4-5 per token is considered achievable, with potential for higher valuations over the longer term as the fund continues to expand and evolve its DeFi strategy.
Liquidity and Buyback Strategies
To enhance the value of TerraM tokens, TerraMatris has implemented strategic liquidity provisioning and buyback initiatives. A portion of the fund's assets is allocated to provide liquidity, facilitating smoother trading and increasing the token's availability. Additionally, regular buybacks are conducted to reduce the number of available tokens, thereby elevating the price of TerraM and providing existing holders with potential appreciation. For instance, with the current price of $1.66 per token, the fund is on track to break $2 per token before the end of 2024 and is ambitiously aiming for $4 per token in 2025.
Investment Strategy and Asset Growth
The TerraMatris fund employs a dual approach to revenue generation, focusing on options trading on leading cryptocurrencies and strategic buybacks. By trading short-term, low-risk options with a Delta under -0.1 the fund ensures consistent gains while maintaining robust risk management practices. Coupled with trigger-based hedging strategies, which allow the fund to go short on BTC and ETH during downturns, TerraMatris remains agile in both bull and bear markets. This strategy not only enhances capital gains over time but also sets TerraM apart as a token with a clear upward trajectory.
Market Position and Future Outlook
The TerraM token offers a compelling passive income opportunity and growth potential within a trusted, strategically managed crypto hedge fund. With clear entry points through decentralized exchanges and wallet integrations, it provides easy access for investors.
The fund's commitment to regular buybacks, strategic asset growth, and a diversified investment approach positions TerraM as a promising asset in the evolving DeFi landscape. As the fund continues to implement its strategies and expand its asset base, the value of TerraM tokens is expected to appreciate, offering investors potential for both passive income and capital growth.
A metric we like to consider when evaluating future growth perspectives for the TerraM token is the implied market cap projection based on current Raydium liquidity pool listings.
As of now, with 455 TerraM tokens listed on Raydium (4.55% of the total supply) and fully backed by USDC, the current market price sits at $1.66 per token. However, using the formula 10,000/455 this 4.55% token representation implies a valuation multiplier of approximately 21.97. This calculation suggests that if the entire token supply were available and traded at a similar demand level, the projected token price could reach $36.47.
While we anticipate that achieving this fully listed valuation may take a few years, this projection serves as an insightful indicator of TerraM’s potential. The gradual increase in listings, coupled with strategic buybacks and continued fund growth, supports a trajectory where TerraM’s token price can approach this long-term target. By monitoring these metrics and the broader fund performance, we can continue refining our outlook for the TerraM token.
Investing today at the current market price of $1.66 sets up an exciting potential for 21.97x growth as the TerraM token gradually reaches full listing on the market.
Right now, we're offering up to 2% of the TerraM token supply OTC at this price, meaning a $332 investment could secure a 2% share of the total token supply.
Applying the projected 21.97x growth, this investment could potentially yield a return of $7,294 over the next few years. This makes TerraM an attractive opportunity for early adopters seeking a promising entry point into the fund’s growth trajectory, especially given its strong strategic backing and the increasing demand within the DeFi landscape.
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