Zilliqa Could Become Another Solana If Its Transaction Speed Use Takes Off


Zilliqa - Zilliqa Could Become Another Solana If Its Transaction Speed Use Takes Off

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Zilliqa (ZIL-USD) crypto is a fast transaction speed blockchain platform that is designed to compete against Ethereum (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 out of Singapore formed the platform using a data storage concept known as “sharding.” This is where a blockchain splits itself into partitions. Each shard has its own data separate from other shards. Their validation process runs separately and then recombines. This is faster than trying to process a whole block or series of blocks.

As a result, Zilliqa, with its $1.35 billion market capitalization, is something of a mini-Solana (SOL-USD). As Solana shot up last year, ZIL-USD has been on the move. On April 2 was 10.71 cents, up from 4.77 cents on March 25. This is when reports came out that ZIL was to launch a metaverse-as-a-service (MaaS) product on April 2.

The Zilliqa website has a blog post from March that talks about the blockchain’s partnership with Metapolis, a company that is powered by Zilliqa. According to CoinDesk magazine, it operates as a “blank canvas for clients to build their own virtual universe as they see fit.” The virtual reality market is projected to grow to $20.9 billion in 2025 from $6.1 billion today according to the magazine. Zilliqa’s developers want to help companies and projects like Metapolis in this space.

Where This Leaves Investors in Zilliqa

Unfortunately, this is a classic case of “sell on the news.” Zilliqa’s peak was at over 21.8 cents on April 1. Now it’s down over 50% to 10.7 cents. Everyone who bought in with the hype is selling their ZIL-USD, as they realize they came in at too high a price.

Investors should be wary of jumping in while the suckers aren’t happy that their holding in this once fashionable crypto is now tanking. Given that cryptos are already very volatile, to begin with, it would be better to wait until much of the selling is over. One indication that this might have happened is that ZIL falls to or is below its previous lows.

The only other way around that is to consistently buy more Zilliqa every day or every week that it is lower than the prior period. That is dollar-cost averaging. Given how speculative and turbulent this crypto has been, that is probably the best approach for most investors.

On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Mark Hake writes about personal finance on mrhake.medium.com, Newsbreak.com and Beehiiv.com.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/zilliqa-could-make-it-big-in-the-metaverse-space-but-its-baked-in-the-price-already/.

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