What Is Numeraire (NMR)?

Numerai is a hedge fund that allows data scientists and developers to create and experiment with machine learning models to predict the stock market. Numarai claims to be the first hedge fund to launch a cryptocurrency, the Numeraire (NMR) token. It also claims to run “the hardest data science tournament on the planet.” Let us elaborate.

The Numerai Tournament

A hedge fund is a risky investment vehicle that trades everything, from stocks to fine art. However, hedge funds also yield some of the highest returns in the finance world. That is why only “accredited” investors can invest in hedge funds, with minimum entries in the hundreds of millions of dollars. What makes Numerai unique is its innovative approach to stock trading.

Numerai runs a series of weekly competitions in which data scientists and developers create machine-learning models to predict the stock market. To take part in the tournament, competitors must stake NMR tokens when submitting their prediction models.

Participants who create accurate prediction models gain NMR rewards. In contrast, participants submitting inaccurate models lose their staked cryptocurrency to a token burn. Numerai puts together all the accurate prediction models submitted to create a meta-model. Then, it uses this meta-model to participate profitably in the stock market.

Numerai was founded in late 2015. Initially, this hedge fund used PayPal to pay rewards to winners in its tournament. Later, it used Bitcoin (BTC). In 2017, Numerai launched NMR on the Ethereum blockchain as an ERC-20 token. Since its launch, this token has been used to pay rewards conveniently. The key metrics of the NMR token as of November 18, 2022, are summarized in the table below.

NMR’s Price History

Numeraire was introduced to the crypto market on June 23, 2017, according to CoinMarketCap. The initial NMR price was $44.5. A couple of days later, on June 25, the price skyrocketed to $168.5, setting its all-time high. Then, the price dropped and bounced between $10 and $40 for the remainder of 2017.

At the beginning of 2018, during the bull run of 2017-2018, the NMR price did not skyrocket as it happened with other cryptocurrencies. The price had a moderate hike, almost hitting $60 in the first days of January. After that, the NMR price progressively dropped. On November 26 of that year, this token’s price reached its all-time low at $1.9.

In 2019, the NMR price slightly recovered but hardly crossed the $10 line. The first quarter of 2020 showed no significant price move. However, in the second quarter, the NMR price soared, reaching $30.5 on May 10. There was another price hike in the third quarter, peaking at $55.2 on August 31. After this peak, the price dropped again, ending 2020 at almost $20.

Like most cryptocurrencies, 2021 was a good year for Numeraine. The NMR price soared since the beginning of 2021, peaking at $84.7 on April 19. After this hike, the price dropped again, bottoming at $26.8 on June 25. Although the NMR price increased again, it did not cross the $50 line.

During the first four months of 2022, the NMR price fluctuated between $10 and $35. But in May, the price drastically dropped, eventually reaching $7.8 on June 18. Since then, the NMR price has suffered a lot of volatility. As of November 18, the NMR price was around $11.1.

Numeraire (NMR) Price Prediction

Numeraire has had an interesting price history compared to other cryptocurrencies. But what is the future of this digital asset? Let us discuss it in the following Numeraire price prediction for the next few years.

NMR Price Prediction for 2024-2025

Short-term price predictions of Numeraire are pretty contradictory. For instance, WalletInvestor forecasts an NMR price of just $2 toward the end of 2024. PricePrediction estimates the average NMR price this year will be $15.8. Accordingly, the price will soar to $46.6 in 2025. Others are less optimistic. For instance, DigitalCoinPrice predicts an average NMR price of $36.9 in 2025. For its part, TradingBeasts expects an NMR price of around $20 in 2025.

NMR Price Prediction 2026-2030

Beyond 2025, the future for Numeraire is much more promising. For instance, TechNewsLeader predicts the average NMR price in 2026 will be $71, with a possible maximum of $85.4. The following year, the average price will be $107.2, with a potential maximum of $119.3. The NMR price will continue to increase, reaching an average of $342 in 2030, possibly climbing to $404.5.

Other sources are less optimistic but also predict price growth. For example, DigitalCoinPrice expects NMR to trade at an average of $90.7 in 2030, whereas PricePrediction forecasts an average price of $330 for the same year. The latter is closer to the prediction by TechNewsLeader.

FAQ

How many Numeraire are there?

There are over 5.8 million NMR tokens in circulation from a maximum supply of 11 million.

Where can I use the NMR cryptocurrency?

The NMR token is used on the Numerai platform. Its usage is twofold. Competitors in the Numerai tournament must stake NMR tokens to participate. Winners in the tournament get rewards in NMR; these rewards are proportional to the amount of NMR that each user staked.

Is NMR a good investment?

It might be. Although there is no consensus about the short-term performance of the NMR token, long-term predictions are more consistent, indicating bullish behavior. The NMR token has reached a meager price, which might be the ideal moment to enter this asset and get significant returns in a few years. If you decide to invest in NMR, you can buy this token on LetsExchange.io at competitive rates.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.

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