Ontology brings trust, privacy, and security to Web 3.0 technologies through decentralized identities and data solutions. The Ontology is a high-speed, low-cost, public blockchain that allows the development of new blockchains on top of its main net.
Ontology has a unique gas token named Ontology gas, which is used only for paying transaction and computation fees. For instance, if a company aspires to transact with a customer through a smart contract, ONG must be used as fuel to execute the transaction. Unlike the ONT token, this gas token is burnt after completing each transaction, and the supply is replenished by rewarding stakers with ONT coins in their wallets.
Staking allows holders to use their tokens to earn interest without trading or selling them. Ontology provides a platform for another blockchain to embed with the mainnet and run side chains to add smart contracts and customize the blockchains for undertaking different operations.
The ONT core system operates on its self-developed Verifiable Byzantine Fault Tolerance protocol. Its combination of Proof of Stake with random function and BFT allows it to tackle more transactions at a much faster rate.
The market capitalization of ONT at present is $142 million, with 88% of tokens in active circulation. Tracking its origins and emergence from 2018, ONT is not a discovery. The token has already witnessed a massive decline from the peak value of $2.94 in May 2021 to the current dip of $0.1624 in December 2022.
The resistance after May 2022 was developed around $0.31 levels, but continuous breakdown from consolidation levels has pushed the value to the lows of $0.16. Losing 50% value since August 2022 with a clear downtrend movement raises doubts about whether to hold Ontology coins or not.
ONT token has seen a massive declining price action since its emergence in 2018; the uptrend for this token hasn’t seen any good days. Although 2021 brought decent uptrend gains from $0.5 to $2.2, the outlook soon turned south after the negative bearish cycle of the crypto industry began in June 2021.
On a short-term basis, the price action of Ontology confirms a negative stance with a declining trendline, a breakdown after each consolidation, and facing resistance at the top. The rejection of tokens at the upper levels confirms a negative stance on the ONT token. RSI indicator showcases a slight improvement from its oversold indications, but the outlook isn’t bullish.
Buying at this level carries a high risk, and one should easily write off their investment into the ONT token. On long-term prospects, just the breakeven would require the token to jump significantly to $0.3 for suitability in the long run. Dumping activity remains high since the token has a huge supply limit of 1 billion tokens.