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
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.
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.
Each token holder is a user
Based on the address growth statistics, it looks like we’re on our way! This year alone, we have seen parabolic growth in April and over 150,000 new addresses every month since then.
12% with ZIL on a CEX, why aren’t you using your ZIL yet?
– Zilliqa (@zilliqa) August 16, 2021
NFTs excite the community
A second reason for the rally in the price of ZIL is the launch of NFT projects on the net.
– Unicutes (@unicutes) September 1, 2021
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.
1 / LIP-9 PASSED It was a close race to the finish, but we greatly appreciate all of our community members for participating in this vote!
– ZilSwap (@ZilSwap) August 23, 2021
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.
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