Celsius Network has Rallied More Than 200%, Why?

Paigambar Mohan Raj
Source: leaps.org

Crypto lending firms were at the heart of the 2022 crypto market crash. Among the most affected were Three Arrows Capital, Voyager, and Celsius Network. The former two tried their level best to come out of their holes, but rather unsuccessfully. However, Celsius Network might just be the first one to pull itself out.

As of today, the network’s native token CEL has registered gains of up to 232.8% in the 30-day chart. Moreover, the network has seen over 100% gains in the 7-day and 14-day charts as well. This comes as a surprise as the firm had only just recently filed for chapter 11 bankruptcy.

Source: CoinGecko

This begs the question as to…

What’s pushing Celsius Network?

Firstly, there was word that Ripple Labs is interested in purchasing the assets under Celsius Network. According to a Reuters report, a Ripple Labs spokesperson stated that the company is interested in learning about the network and its assets. Moreover, they are interested to know if the said assets could be relevant to Ripple’s business. Ripple is one of the largest names in the crypto-space.

Therefore its interest could be a potential reason for the Celsius Network’s sudden rally. However, Ripple is facing its own set of problems at the moment. The company is in battle with the SEC, facing accusations of selling unregistered securities.

Secondly, Celsius Network has paid off many of its loans, including its Bitcoin (BTC) loan to Maker Protocol. The network also paid off its Compound loan. Paying back their debts also could be a reason for the network to shine. They may have regained some of the trust that was lost during the crash.

Additionally, the company has released a restructuring plan, which investors seem to be happy with. The company plans to use its Bitcoin mining initiatives to repay any and all remaining debt. The company owes nearly $4 billion to its users.

Nonetheless, there are some clouds over Celsius Network. The company is being probed by Canadian watchdogs over its collapse. Because of the cross-border nature of the issue, the SEC and Canadian officials are working together on the inquiry. According to Financial Post, the SEC is also collaborating with authorities in a number of states, including Texas.

At press time, CEL was trading at $2.36, up by 30.6% in the last 24 hours.