Zilliqa is a blockchain that stands out on its own. It runs on Scilla that has been designed to make it scalable. There are lots of potential with this particular cryptocurrency which at the time of this writing is at USD0.80. It grew to 25 cents at its peak in April-May 2021 and has lots of traction.
Pros
- High reward rate that encourages initial buy-in and locked-in staking. With an average reward rate of 14%, participants are able to double their investments in 5 years (not fiat value, but the number of tokens held).
- High participating rate of 32%, the system has a very strong following. With a market capitalisation of about $985m, the staked value is at $384m.
- Protected from inflation. Zilliqa has 21 billion coins. While the current reward rates are high, they will be adjusted as time goes by. It is the growth of the network right now that is important and more and more projects are coming onto it.
- Great utility and real-world use cases. These are the list of projects (https://zilliqaproject.com/) on Zilliqa. From digital marketing agencies to NFT minting to interoperability, a YouTube Academy and even swapping of tokens.
- Sharding, speed in transactions. It solved these issues early on whereas Ethereum and Cardano are still talking about solving sharding. Given the investments into their development, these cryptocurrencies will at some point figure out how to resolve them. But then again, resources are limited and time is of the essence. This is not to say that other cryptocurrencies are terrible. We are doing our due diligence in pointing out obvious issues that saves you time in the research process.
Con:
1. Lacks good DeFi projects – this includes DEX, fractional ownership exchanges of stocks.
In short, you want to have the money makers on your side. In fact, another cryptocurrency token, Solana, has excellent DeFi projects including fundraising through decentralisation (Solanium), tradable crypto markets (Hxro), gamified DeFi (Defi Land), decentralised prime brokerages (Oxygen), options trading (PsyOptions), decentralised cross margin trading (Mango), decentralised derivatives exchange (Serum, dexlab), decentralised non-custodial investment funds, creator centric NFT Marketplace (Sollectify). See (Solana Projects)
There will be some level of cannibalisation given that there are already 79 projects in DeFi alone. There are others in like in Data, Tooling, NFTs etc. but as we always know, MONEY talks and if there is money, there is where more money will come rolling in.
But no worries in this because first mover advantage by another crypto does not necessarily guarantee long term success. Take a look at Iron Finance. It was a DeFi darling which went from billions of dollars to NOTHING overnight. The point is this – do not go all #FOMO into something that is a shooting star. Shooting stars fizzle and burn out quickly.
ROADMAP
Zilliqa has a good runway and excellent use cases to attract projects to it. What it needs is for big names to recognise its potential and building upon its platform.
Remember: The market always goes where the money goes.
And we believe that this team has the potential to take it really far. Watch this video to see the other exciting developments with this great altcoin.
Yours,
Chief Editor
BBA Market Perspectives
This is NOT financial advice, this is news and notices of yield opportunities across the crypto world and news on price performance. Do your own due dilligence!
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