Zilliqa is a blockchain project best known for implementing sharding, a technique that allows it to solve scalability issues. Consequently, it is one of the fastest-growing platforms for developing and hosting decentralized applications. It currently has over 200 projects running on its blockchain.
The sharding technique splits the Zilliqa infrastructure into several interconnected blockchains. With sharding, each chain is allocated its purpose and unique data storage. Spreading the network traffic across multiple chains makes it easier to avoid a backlog of invalidated transactions.
Conversely, the network can handle more transactions at any time while allowing developers to enjoy increased scalability and faster transactions. As the Zilliqa network grows, the number of shards is expected to increase, allowing it to process more transactions a second.
ZIL is the native token that powers the Zilliqa network acting as a medium of exchange through which all transaction fees are settled. It, therefore, acts as a store of value. Like any other cryptocurrency, it can be bought and sold on decentralized exchanges. The coin can also be staked on various platforms to make some passive profit on the side.
The number of ZIL tokens that will ever be in circulation is capped at 21 billion. Currently, there are 12.82 million ZIL tokens in circulation with a market cap of $734 million. The total value of ZIL tokens locked in decentralized application platforms stands at $14.81 million.
Is Zilliqa a good investment?
Zilliqa has been extremely volatile over the past two months, rallying by more than 500% at the end of March to nine-month highs above $0.24. The explosive move came as investors reacted to a plethora of partnerships, including Blockchain Gaming Alliance and the native coin getting listed on Binance, BitGet, and BitPanda.
Fast forwarded the coin has imploded. The implosion came as the broader cryptocurrency sector came under pressure as investors shunned speculative assets in favor of safe-havens.
The coin has started showing signs of bottoming out as investors take note of the deep pullback. After the impressive run in early April, the coin appears to be trading at a great discount as the overall industry shows signs of bottoming out.
With the coin-finding support above the $0.05 level, it looks like an attractive play on the risk-reward front. As the overall sector bottoms out, after months under pressure, Zilliqa is one of the coins well positioned to rally.
Its Blockchain is becoming increasingly popular in developing decentralized applications, given its edge on scalability. The launch of Metabolism Metaverse is another factor that affirms the Blockchain’s use case around non-fungible tokens.
Zilliqa has a lot going for it. While the coin has taken a significant hit, it still looks like an attractive play at its current low valuation levels.
Should I buy Zilliqa today: Crypto technical analysis for ZIL
ZIL looks oversold after a recent 70% slide from one-year highs. However, the coin has shown signs of bottoming out after breaking out of the long-running bearish channel. The Relative Strength Index is also pointing up, implying a build-up in buying pressure.
ZILUSD finding sport above the $0.05 handle raises the prospects of the coin edging higher as a bounce-back play. A rally followed by a close above the $0.06 level could trigger renewed buying pressure that could see the coin rallying back to the $0.10 handle.
On the flip side, a decline followed by a close below the $0.05 handle could attract more short sellers that could see the coin plunging back to one-year lows at the $0.03 handle.
Will ZIL coin price hit 1 USD in a year?
It is highly unlikely that the ZIL coin will hit the $1 a coin mark in a year. The highest level that the coin has ever reached is $0.26. As other coins were racing higher last year, the coin was in corrective mode.
Currently, it has plunged below the $0.10 pivotal level from where it is trying to bounce back. Until the cryptocurrency crash dust settles, the coin could remain under pressure. The probable bet is the coin bouncing back to its all-time high on strengthened investor confidence about the project’s long-term prospects.
What is ZIL coin price prediction for 2025?
While ZIL has come under immense pressure in recent months, it is expected to appreciate significantly over the next three years. Immediate estimates indicate the coin could power through the $0.10 level and rally to highs of $0.12 by 2025 representing a 140% plus gain from current levels.
However, the coin would still be trading at a discount as it has previously raced to highs of $0.26 a coin.
The best way to buy ZIL
Zilliqa coin is listed in several large cryptocurrency exchanges. Consequently, it can be easily bought at Binance, Huobi, and Bitfinex.