Sunday, October 2

NFT projects and high-yield opportunities support strong Zilliqa rally

One of the most important factors in the long-term success of a blockchain platform is having an active community of followers and developers working to showcase the capabilities of the network by creating new products and interacting with projects on the protocol.

Zilliqa (ZIL) is a project that saw a price increase during August as developers built their ecosystem and improved the protocol.

Cointelegraph Markets Pro data and TradingView shows that after hitting a low of $ 0.05 on July 20, the price of ZIL proceeded to rise 145% to a high of $ 0.1244 on August 24

ZIL / USDT 4-hour chart. Source: TradingView

Three reasons for the bullish momentum seen in ZIL include a rapidly growing ecosystem that is attracting new entrants, the launch of non-fungible token (NFT) projects on the network, and attractive decentralized funding and participation opportunities that remove tokens from supply. circulating.

A rapidly expanding ecosystem

Zilliqa’s most recent quarterly report shows that the project ecosystem now has more than 180 partners and projects built on the network and this shows that there is significant interest in the protocol’s capabilities.

Zilliqa Ecosystem. Source: Zilliqa

As the ecosystem grows, the number of new users determined by new wallet addresses has continued to increase by an average of 150,000 addresses per month.

NFTs excite the community

A second reason for the rally in the price of ZIL is the launch of NFT projects on the net.

The NFT sector dominated the headlines throughout August and transaction volumes on platforms like OpenSea surged to a record $ 3 billion.

High fees on the Ethereum network have also forced crypto users to migrate to competing networks that offer decentralized finance (DeFi) and NFT trading in a lower cost environment.

Some of the existing and upcoming NFT and gaming protocols on Zilliqa include Unicuties, DeMons, Heroes of Lowhelm, and Blox.

Related: Evrynet’s $ 7 Million Raise Highlights Institutional Appetite for DeFi

DeFi and stakeout functions decrease circulating supply of ZIL

Another reason for the growing strength seen at Zilliqa is its growing DeFi ecosystem and attractive participation rewards that offer high-performance returns for users.

ZilSwap, the network’s dominant decentralized exchange, has over $ 61 million locked into its protocol and regularly engages the community through governance votes aimed at improving the reward structure, liquidity, and volumes.

ZIL token holders can also stake their tokens on the network and earn 12.79% APY and according to Zilliqa 34.22% of the circulating supply is currently being wagered on the network.

According to the most recent quarterly report, 14% of ‘tradable’ ZIL is locked in DeFi, leaving 51.2% of the available supply in circulation.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trade move involves risk, you should do your own research when making a decision.