Balancer logo

Balancer

BAL

4.4

Price
$5.31
10/6/2022, 3:14:08 AM
diamondHands

Trade Balancer today

Create a Coinbase account to buy and sell Balancer on the most secure crypto exchange.

Market

Market stats

Market cap

$232.9M

Volume (24h)

$5.2M

Circulating supply

43.8M BAL

Typical hold time

10 days

Popularity

#69

All time high

$74.77

Price change (1h)

-0.3%

Price change (24h)

+1.92%

Price change (7d)

+0.57%

Trading activity

88% Buy0% Buy
13% Sell100% Sell

Sign up now to get up to $400 in rewards

Coinbase users can earn up to $400 on average just by taking advantage of our rewards. Get started now.

congratulationsOnEarningCrypto

Balancer is on the rise this week.

The price of Balancer has risen by 0.57% in the past 7 days. The price increased by 1.92% in the last 24 hours. In just the past hour, the price shrunk by 0.30%. The current price is $5.31 per BAL. Balancer is 92.90% below the all time high of $74.77.

The current circulating supply is 43,822,909.746 BAL.

About

Balancer (BAL) is an Ethereum token that powers the Balancer protocol, an automated market maker that lets anyone create or add liquidity to trading pools while earning customizable trading fees. Balancer pools can have up to 8 tokens and each token can be individually weighted within the pool, such that one token can make up as little as 2% of the total.

What Is Balancer (BAL)?

Balancer is a decentralized exchange protocol, automated portfolio manager, liquidity provider, and price sensor that is community-driven. Additionally, Balancer runs automated portfolio management of tokens on the Ethereum blockchain and other EVM (Ethereum virtual machine)-compatible systems. The Ethereum virtual machine is the software platform that developers use to develop decentralized applications (DApps) on Ethereum. Balancer allows the trade of crypto assets without the need to employ a financial intermediary (an exchange). Balancer incorporates significant features to reduce transaction costs, boost capital efficiency, enable arbitrage with zero-token starting capital, and enable custom AMMs.

One of the important components of the Balancer ecosystem is Balancer Pools. Balancer Pools are the fundamental building blocks of the Balancer Protocol; they are smart contracts that define how traders can swap between tokens on Balancer. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on blockchain. What makes Balancer Pools distinct from those of other protocols is their limitless flexibility. While other exchanges have pools with constrained parameters, Balancer can accommodate pools of any composition. Balancer's architecture allows anyone to develop their own pool type, opening the door for customized pricing functions in trading pools.

In simpler terms, consider Balancer to be a type of index fund, where users establish funds depending upon the cryptocurrencies held in their portfolios. These funds are called Balancer Pools, and any user who wishes to offer liquidity to a pool can do so simply by placing an asset in it. Users who supply liquidity to a Balancer pool are rewarded with a native cryptocurrency called BAL, as well as a share of the trading charge paid to the network for the use of their funds. Additionally, these deposits provide the liquidity that allows users to trade cryptocurrencies on the platform.

Balancer needs to incentivize both components of its market—first, crypto users who want to trade some of their holdings, and second, traders looking for the best potential price for an asset. Balancer functions similarly to other decentralized exchanges (DEXs) in this regard. However, Balancer offers additional features like the ability to bundle up to eight tokens into pools. Balancer Pools are made up of up to eight different cryptocurrencies, similar to how an index fund is made up of several types of stocks. Besides, the value of a Balancer Pool is defined by the percentages of each token in it, a weight established at pool creation.

Self-balancing index fund: Balancer employs smart contracts to ensure that each pool retains the appropriate proportion of assets, even if the prices of individual coins deposited in the pools fluctuate. A Balancer Pool, for example, could begin with 25% ETH, 25% DAI, and 50% LEND. If the price of LEND doubles at some time, the pool automatically reduces the quantity of LEND it holds to keep 50% of the pool's worth. Notably, liquidity providers continue to earn fees while their index funds are rebalanced, as opposed to typical index funds, which charge investors for rebalancing services.

Next, Balancer provides a variety of pools, most notably private and public pools, aimed at customers with varying risk appetites. In a public pool, any user can supply liquidity by adding or withdrawing assets. Before they open, the parameters of public pools are fixed and cannot be adjusted.

On the other hand, a private balancer pool is one in which only the pool creator has the ability to add or withdraw assets. The user can also change all other parameters of the pool,  such as fees, weightings, and the sorts of assets it takes.

Finally, smart pools are a form of a private pool that is controlled by smart contracts. This capability enables pools to be programmed to execute extra operations such as adjusting weights or generating an index fund that tracks a real estate portfolio.

BAL is the native currency of the platform. BAL makes sure that no single entity has control over how the network runs. Additionally, the token also serves as an incentive system, with users earning BAL tokens for depositing assets into Balancer Pools.

History of Balancer (BAL)

Balancer began in 2018 as a research project at BlockScience, a software consulting firm created by Fernando Martinelli and Mike McDonald.

In 2020, the project raised $3 million in investment on its own as Balancer Labs. During the financing, 5 million BAL tokens were sold to investors, while 25 million tokens were distributed to shareholders and employees (out of a total supply of 100 million tokens).

How Are New Balancer (BAL) Tokens Created & Users Rewarded?

Liquidity mining is considered one of the unique and easiest ways to make money from the Balancer platform. Liquidity mining is the mechanism through which Balancer rewards liquidity providers in order to encourage them to provide liquidity to the pools. Thus, for providing liquidity to the pools, two rewarding schemes are available: reward from trading fee and BAL.

To add liquidity to a pool, the user must go over to Balancer Pools and connect it to their wallet. There are different pools available to choose from, and anyone can be selected to add liquidity too. For instance, one can choose 80% wETH and 20% MKR pool or vice versa. Notably, users need to have the correct ratio of tokens required to enter their chosen pool. After everything is in place and transactions are confirmed, users start earning passive income through trading fees. In addition, users are entitled to earn BAL per week in proportion to how much they have contributed in comparison to the rest of the community.

How many Balancer (BAL) tokens are there?

The maximum supply of BAL tokens is capped at 100 million.

How to Buy Balancer (BAL) Tokens

Balancer (BAL) tokens can be purchased on Coinbase's centralized exchange. Coinbase supports Balancer (BAL) on Coinbase.com as well as the Coinbase app.

Related Assets

Trending assets

Assets with the biggest change in unique page views on coinbase.com over the past 24 hours.

Popular cryptocurrencies

A selection of cryptocurrencies in the top 50 by market cap.

Recently added

A selection of the most recently added cryptocurrencies.

Comparable market cap

Of all the assets on Coinbase, these 8 are the closest to Balancer in market cap.

Social

Balancer on social media.

Balancer was mentioned in 83 out of 1,631,494 social media posts on Twitter and Reddit on Oct 04, 2022. 99 unique individuals are talking about Balancer and it is ranked #660 in most mentions and activity from collected posts.

Powered by LunarCrush

Key indicators

Contributors

99 people

Posts

83 posts

Dominance

0.01%

Volume rank

#660

Powered by LunarCrush

FAQ

What is the current price of Balancer?

The price of 1 Balancer currently costs $5.31.

What is the market cap of Balancer?

The current market cap of Balancer is $232.92M. A high market cap implies that the asset is highly valued by the market.

What is the all time high of Balancer?

The all-time high of Balancer is $74.77. This all-time high is highest price paid for Balancer since it was launched.

What is the 24 hour trading volume of Balancer?

Over the last 24 hours, the trading volume of Balancer is $5.21M.

What other assets are similar to Balancer?

Assets that have a similar market cap to Balancer include OMG Network, Polymath, Flux, and many others. To see a full list, see our comparable market cap assets.

How many Balancer are there?

The current circulating supply of Balancer is 44 million.

What is the typical holding time of Balancer?

The median time that Coinbase customers hold Balancer before selling it or sending it to another account or address is 10 days.

What is the relative popularity of Balancer?

Balancer ranks 107 among tradable assets on Coinbase. Popularity is currently based on relative market cap.

What is the current trading activity of Balancer?

Currently, 88% of Coinbase users are buying Balancer. In other words, 88% of Coinbase customers have increased their net position in Balancer over the past 24 hours through trading.

Coinbase Bytes

The week’s biggest crypto news, sent right to your inbox

Coinbase Bytes article