FIS is the native token of the StaFi (Force Protocol) protocol, focusing on the liquidity issues of PoS chain staking assets. Below is a detailed introduction, along with a one-way prediction of a price drop by the end of 2025 based on the current market situation, as follows:
Detailed introduction of FIS
1. Core positioning and functions: FIS is mainly used to solve the liquidity problems of staking assets locked during the PoS chains like DOT and KSM. Users can convert their staked assets into tradable rTokens for multiple uses. It is also the governance token of the StaFi network, allowing holders to vote on protocol upgrades, parameter adjustments, etc. It can also serve as collateral for staking and for paying system fees for cross-chain transfers. Node operators can also earn FIS rewards by maintaining the network.
2. Token economic model: Previous data shows the total issuance of FIS is 13,315.4 million pieces, with a circulation of approximately 6,045.2 million pieces in 2025, and a circulation rate of about 45.4%. The token has a clear deflationary strategy, having destroyed 3.18 million FIS since 2024, with plans to reduce the annual inflation rate from 10% to 6% in April 2025, and to 0% by 2027, in order to reduce circulation and enhance token value.
3. Trading and market performance: Currently, FIS has been listed on major exchanges such as Binance, OKX, and Gate.io. On December 12, its price was $0.0342, with previous data showing a 24-hour volatility of 61.7%, peaking at $0.038, and a market cap of approximately $4.05 million; however, its annual price drop is 89.86%, and it has a correlation of 0.79 with Bitcoin, making it susceptible to the trends of mainstream cryptocurrencies.
End-of-2025 price forecast and reasons
It is predicted that by the end of the year, FIS's price will drop to the range of $0.025 - $0.03, with the core reasons as follows:
1. Overall market sentiment is sluggish: The current cryptocurrency market fear and greed index is in the 'extreme fear' range of 16, and Bitcoin accounts for 58.92%. A large amount of funds is flowing into mainstream cryptocurrencies, while mid and small-cap altcoins like FIS face outflow pressure. In this risk-averse environment, altcoins like FIS are prone to large-scale sell-offs.
2. Technical indicators show a weak trend: The 50-day moving average of FIS continues to slope downward and is positioned above the current coin price, creating resistance. The 200-day moving average has maintained a downward trend since August 24, indicating a clear long-term weakness. Although the short-term RSI shows oversold signs, there are no bullish divergence signals, making it difficult to support a price reversal.
3. Increased liquidity fails to counter short-term downturn: Although FIS has completed its listing on HyperliquidX, theoretically benefiting from the platform's $617 billion in futures trading volume to enhance its liquidity, historical data shows that mid and small-cap tokens like FIS often experience rapid increases followed by quick corrections after being listed on exchanges. Furthermore, it lacks the ability to maintain a high order depth consistently. The gains seen after the previous listing on BYDFi were quickly erased, making it difficult to reverse the weakness before the end of the year based on this positive news.
\u003ct-29/\u003e
\u003cc-23/\u003e
