SPELL Token Overview

SPELL is the governance token issued by the decentralized lending protocol Abracadabra.money. This protocol allows users to mint the stablecoin MIM (Magic Internet Money) by staking ibTokens, which are interest-bearing assets. SPELL functions as both a governance tool and an incentive mechanism within the protocol, enabling key features such as fee buybacks, voting, and distribution of staking rewards.

Abracadabra.money has built its reputation around “small-scale stablecoin minting” and “composability,” drawing significant interest from DeFi investors. While SPELL’s overall market cap remains modest, the token has seen recurring activity throughout DeFi market cycles since 2021.

Latest Price and Market Performance

Source: https://www.gate.com/trade/SPELL_USDT

According to Gate platform data, as of August 5, 2025, 10:00 (UTC+8), SPELL/USDT was quoted at 0.0004741 USDT, with a 24-hour gain of 1.19%. Over the past 24 hours, trading volume reached 736.64 million SPELL and a turnover of 345,444 USDT.

• 24-hour high: 0.0004777 USDT
• 24-hour low: 0.0004616 USDT
• Current market cap ranking: approximately 434 (based on CoinMarketCap data)
• Total market cap is approximately $78,000,000
• The 24-hour trading volume across platforms is over $7.3 million

These price fluctuations indicate that SPELL maintains liquidity and trading activity in the short term. However, it remains well below its all-time high of approximately $0.07515.

Key Factors Impacting Price

1. Abracadabra Protocol Upgrades and TVL Changes: The protocol recently launched MIMSwap V3, featuring low-slippage swaps and incentivized market making. This should expand the use cases for both MIM and SPELL, potentially attracting more locked assets and indirectly benefiting SPELL’s price.
2. Macro Market Trends and Correlation with BTC: Like other small-cap tokens, SPELL’s price closely tracks Bitcoin. Since late July 2025, BTC has pulled back from $118,000 to around $112,000, which has put downward pressure on SPELL’s price.
3. Token Inflation and Burn Mechanism: SPELL’s initial max supply was 420 billion, with 210 billion already burned. The remaining tokens will be released in phases, so near-term supply remains ample, which may continue to weigh on SPELL’s price.

Risks and Opportunities for Investors

Opportunities

• Continued innovation from the Abracadabra protocol could drive user growth and increase MIM circulation.
• The SPELL staking model provides yield, which appeals to medium- and long-term investors.
• If the broader DeFi sector rebounds, SPELL could offer correlated upside potential.

Risks

• Project development is relatively slow, but market trends may shift quickly.
• SPELL’s performance is highly dependent on major assets like BTC and ETH.
• SPELL, as an established DeFi project, could be displaced by newer protocols.

Investment Recommendations

New investors should monitor whether SPELL holds the support level at 0.00045 USDT and set appropriate take-profit and stop-loss orders. Building positions in tranches and holding for the long term is currently a prudent approach.