Zilliqa has come up as an important player in the crypto market. Zilliqa has enjoyed community support due to its technological solution, which simplifies scalability issues that are part of the blockchain ecosystem. By using the sharding technology, Zilliqa uses two blocks to ensure smoother and faster transactions. Founded in 2017, Zilliqa has a market capitalization of $265 million. The token saw a +463.12% growth from its all-time low in 2020. Now, the important question persists: Will Zilliqa reach the $1 mark?
Price History of ZIL token
Zilliqa has seen some notable price swings since its debut seven years ago. The ZIL token attained an all-time high in May of 2021 of $0.256373 and hit a low of $0.002344 in March of 2020. ZIL is currently priced at $0.013965, representing a 2.24% uptick in the token’s price in the last 24 hours. However, the current price is a 16.82% drop from the price seven days ago. These swings exemplify the cryptocurrency’s volatility, though ZIL continues to enjoy community support.
Like most cryptocurrencies, Zilliqa’s price swings have been indebted to various macroeconomic factors, such as the growing adoption of sharding technology, market volatility, demand and supply, regulatory oversight, and the boom of decentralized apps (dApps). Irrespective of any downturns, analysts are optimistic about ZIL’s potential due to its sharding technology.
What Are The Factors Behind ZIL’s Price Swings?
There are many factors that determine the upticks and downticks for Zilliqa’s price. For instance, Zilliqa uses sharding technology in the blockchain ecosystem by utilizing two different blocks, i.e., transaction blocks and directory service blocks. Working with two blocks allows it to tackle many transactions all at once, a feature in which other blockchains could be more efficient. This makes the blockchain scalable and secure at the same time.
Further features such as interoperability attract more developers to build dApps that can operate on many blockchains and manage assets across more than one blockchain. This accessibility and flexibility have given Zilliqa a competitive advantage over other blockchains. Zilliqa recently partnered with Emurgo, the commercial branch of Cardano, enabling developers to build on the Cardano blockchain due to the interoperability between the two chains.
Apart from partnerships, Zilliqa prioritizes technological upgrades, such as the Jasper Proto-Testnet Launch, which gives the blockchain an upper hand in contrast to its competitors. Now, Zilliqa users can get the benefits of a full Proof-of-Stake (PoS) consensus, driving up adoption for the Zilliqa (ZIL) token.
According to Zilliqa price prediction, ZIL can reach the $1 mark if market conditions are in place.
Will ZIL Reach $1?
ZIL’s path to reaching the $1 mark is dependent on the market sentiment, supply and demand, and any regulatory changes around cryptocurrencies. For now, ZIL has a bearish sentiment throughout the market, with the Fear & Greed Index at 41.
However, if ZIL’s adoption can increase in the short term with users getting staking incentives and the need for sharding skyrockets suddenly, there might be chances for further price increases.
Regulatory, technological, and market volatility risks that ZIL faces in its adoption may be thwarted by regulatory changes such as the U.S. presidential election in the crypto space, and technological challenges around scalability and network efficiency may stifle growth. Furthermore, the general volatility of the cryptocurrency market shows that consistent price growth is not a given, so how long it might take for ZIL to reach a dollar remains to be determined.
In the short term, however, the price would not reach the dollar mark. With much better market conditions and more widespread adoption, long-term projections could have ZIL near $1, but that is speculative at best and could take months or years to play out.