Zilliqa (ZIL-USD) has had a unique journey through the first quarter. The crypto was able to shrug off the volatility that hindered much of the market in the early months of 2022. Moreover, it is behind one of the largest bull runs any one crypto has seen this year. But now, it looks like the Zilliqa crypto is coming back to earth, bringing to an end its momentous upswing.
Previously, Zilliqa had been known as a layer-1 protocol, seeking to compete with networks like Solana (SOL-USD) and Avalanche (AVAX-USD). Its claim to fame is its scalability; using data sharding, the network can break down transactions into tiny pieces, distributing them among multiple nodes. These nodes can more quickly process the chunks of data, allowing the network’s throughput to be much higher than competitors.
Much of the hype surrounding Zilliqa can be tied to its late-December announcement. Developers unveiled the network’s plan to delve into the metaverse. The Metapolis is Zilliqa’s flagship metaverse space; it emphasizes platforming creators, allowing them to develop spaces with their own unique aesthetics by dividing the space into “domes.”
Zilliqa Crypto Sees 350% Gains Come to Halt After Metapolis Launch
Metapolis is the avenue through which the Zilliqa crypto has been able to accrue its jaw-dropping gains. Indeed, investors have been getting excited by the details of the project, leading to increasingly large influxes of ZIL crypto investors in recent days. But as the project actually sees its launch, the crypto appears to be on a cool down.
The announcement didn’t translate to immediate gains for the Zilliqa crypto. Indeed, the ZIL crypto barely budged in price between January and mid-March. However, as the Metapolis launch inched closer, the hype began to rapidly accumulate.
Developers announced in late March that Metapolis would be rolling out on April 2. On March 25, the coin saw its first major price pump; over just a few days, the coin was able to grow 150%. The gains continued as the launch came closer, and ultimately, ZIL was able to rise 350% from the speculative excitement.
Over the weekend, Zilliqa developers rang in the Metapolis launch with a party in Miami. Since then, though, the coin has been on a downward slope. The Zilliqa crypto has lost 32% of its value since April 2.
Surely, it seems this downtrend is the result of investors selling the news while it is hot. At 22 cents, Zilliqa crypto prices were the highest that they had been since May 2021. Still, the project remains one of the largest layer-1 networks with a native metaverse platform, holding a $1.6 billion market capitalization in the wake of the launch.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions 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.