Zilliqa (ZIL USD) crypto is a fast transaction speed blockchain platform designed for competition ether (ETH USD). It is a high throughput system with the ability to complete thousands of transactions per second. Investors like it for its use in decentralized apps (DApps). It specialized in apps related to decentralized finance (DeFi) like staking and yield farming.
A group of students and a professor from Singapore formed the platform using a data storage concept known as “sharding”. This is where a blockchain is divided into partitions. Each shard has its own data, separate from other shards. Your validation process is run separately and then recombined. This is faster than trying to process an entire block or a series of blocks.
As a result, Zilliqa, with its $1.35 billion market cap, is something of a mini Solana (LINKS USD). When Solana surged last year, ZIL-USD was on the move. It was 10.71 cents on April 2, versus 4.77 cents on March 25. At that time, reports emerged that ZIL would be launching a Metaverse-as-a-Service (MaaS) product on April 2nd.
The Zilliqa website has a blog post from March that talks about the blockchain’s partnership with metapolis, a company operated by Zilliqa. According to CoinDesk magazine, it acts as a “blank canvas for customers to build their own virtual universe at their own discretion”. According to the magazine, the virtual reality market is expected to grow from $6.1 billion today to $20.9 billion in 2025. The Zilliqa developers want to help companies and projects like Metapolis in this area.
Where this leaves investors in Zilliqa
Unfortunately, this is a classic case of sell on the news. Zilliqa peaked at over 21.8 cents on April 1st. Now it’s down over 50% to 10.7 cents. All who bought in with the hype sell their ZIL-USD as they realize they bought in at too high a price.
Investors should be wary of getting in, while suckers aren’t happy that their stake in this once-fancy crypto is now waning. Given that cryptos are already highly volatile, it would be better to wait until much of the selling has ended first. One indication that this may have happened is that the ZIL is falling to or below its previous lows.
The only other option is to buy more Zilliqa each day or each week when it is lower than the previous period. That’s dollar cost averaging. Given how speculative and turbulent this cryptocurrency has been, this is probably the best approach for most investors.
At the time of publication, Mark R. Hake had no position (direct or indirect) in any of the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
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