When someone asks for the best decentralized application supporting cryptocurrency, the apparent answer comes out as Ethereum, simply because we have limited knowledge about the capabilities of other cryptocurrencies. However, Zilliqa has every intention of dethroning ETH from its market-leading position. ZIL was first introduced to the public in 2017 as an originating concept from academicians and the University of Singapore. ZIL has now become the transactional face of multiple finance, digital advertisements, and gaming industries.
Utility token for the Zilliqa blockchain is used within the blockchain to execute smart contracts, rewards for miners, and pay for network transactions. Well, Zilliqa didn’t grow without funding. It garnered $20 million in private financing and another $2 million investment during its one-week ICO offering in December 2017. As a result, Zilliqa has a circulating supply of close to 11.5 billion coins with a maximum supply of 21 billion coins.
ZIL is currently trading at close to 6 cents for a total market capitalization of $730 million. Ranked 82nd among all cryptocurrencies based on market capitalization. Zilliqa’s main net has been contributing to the digital payments infrastructure around the global communities since 2019.
How is ZIL different from other cryptocurrencies supporting smart contracts!
Zilliqa is a lot different from other similarly functioning cryptocurrencies because of utilizing a unique principle called sharding. In sharing, a blockchain node is broken down into multiple groups called shards. For example, for a network of 100 nodes, Zilliqa would divide the network into one shard of 10 nodes. Each of the small shards processes a small portion of all the transactions simultaneously, called a Microblock.
Once all the transactions are finalized, they are recombined into one complete block and added to the blockchain. Because of parallel transactions, the speed of completing one full transaction increases, aiding one shard to complete a total of 10 transactions per second.
Zilliqa has ensured that one shard must be sufficiently large with at least 600 nodes for security reasons. This ensures the probability of having a fraction of 1/3rd of the shard becoming malicious. Zilliqa takes only 1/3rd of energy to execute a transaction compared to Proof of Work protocol using blockchains.
The capability of Zilliqa to scale and execute more than thousands of transactions per second enables this cryptocurrency to support large and complex financial instruments to be built on its network. Compared to the limitations, congestion, and ultra high gas fees of Ethereum, Zilliqa seems far more superior. Not only does it allow developers to create new Dapps, but it ensures that higher volumes would not lead to congestion.
Zilliqa Price Analysis
Zilliqa, despite its potential, has shown a negative trend because of growing competition leading to a decrease in investor sentiment. After hitting an all time high of 26 cents on April 17, ZIL has fallen to more than 75%. It is currently trading at just 6 cents. While the intensity of fall has dramatically reduced, the positive sentiment on ZIL is yet to kick in.
On a broader timeframe, MACD indicates a severe decrease in the negative sentiment as MACD closes to the neutral line. Once it climbs above the neutral line and ZIL crosses a recent high in one swing, Zilliqa is close to the year low value, and breaching the year low line will indicate a weaker sentiment even on a broader time frame. Thus, a trend reversal or consolidating near its year low close to 6 cents is a good scope of a trend reversal.
ZIL is currently trading in a small consolidation zone on a shorter hourly time frame. On the lower side, there is support at 6 cents and resistance at 6.5 cents. Hence Zilliqa is showing some resolve to trend higher. The breaking of these levels will be instrumental in establishing the other price trend. RSI is closing towards a bullish sentiment and currently trading close to the 40s level.
On a positive note, ZIL should head towards higher levels, and retracting back to its all time high levels will provide a 4x return on capital employed. However, given its huge supply of 21 billion coins, even the valuation of $1 will limit ZIL to 8th or 9th rank.
According to our ZIL price prediction, Traders should think of making long positions on this crypto, given its smaller valuation. On the other hand, short term trading in Zilliqa can be risky and trap your money for a longer duration.