Price Predictions

Zilliqa(ZIL)/USDT Price Prediction: 07 February 2022

Zilliqa(ZIL) Price Prediction

Overview

In the times when most of the blockchains are designed to offer fast transactions with high throughput, Zilliqa acquires the higher spot. The blockchain uses a shredded network as its second-layer scaling solution, aiming to grow an ecosystem of Decentralized Apps(dApps) offering many other features. The platform intends to incentivize the global and distributed networks of computers to run a blockchain platform, increasing user scalability through shredding. 

The Zilliqa blockchain is backed by its native coin ZIL which is used to pay the transaction fees which is nothing but the computing power on the Zilliqa blockchain. The ZIL price maintained a very narrow trend until the beginning of the 2021 bull rally. However, the asset rose like a monster to gain nearly 350% to hit its ATH above $0.26 in a very short time frame. Woefully the asset has now drained more than its gains and plunged nearly 600% from its highs.

Will the ZIL price regain the bullish momentum? If yes, what levels will the asset reach by the end of the year 2022? Let’s see

Introduction to Zilliqa(ZIL)

Launched in June 2017 by Amrit Kumar and Xinshu Don, Zilliqa is designed, built to use powerful dApps which are user-friendly. Zilliqa is one of the competing blockchains like Ethereum, Tron, etc. But it differentiates itself by using a sharding process that splits the infrastructure into several interconnected blockchains to increase the transaction count and speed. 

The primary features of Zilliqa are:

  • Low Cost:- The sharding process increases the transaction count and speed. And hence decreasing the transaction cost.
  • Scalable:- The blockchain is built to be more scalable to handle an increase in the user base 
  • Cost-effective mining:- The platform enables low-powered hardware to get block rewards and hence eliminating the requirement of huge hardware set up to mine the blocks

To achieve most of these features, the native coin ZIL is used. It executes the program, sends transactions and also incentivizes the contributors of the network. The coin was launched through an ICO in 2017 raising over $22 million in ETH. 

Additional Read: Crypto Taxation Guide Budget 2022

How Does Zilliqa Work?

Very much similar to the other blockchains, Zilliqa also offers crypto services like smart contracts, staking, yield farming, etc. As mentioned before, Zilliqa uses a sharded mechanism that increases the speed of transactions along with its count. 

Zilliqa Sharding

The functioning of blockchain is pretty simple: when a new transaction is initiated, all the nodes verify the transactions and add the block to the blockchain. By doing so the nodes were required to access the whole data of the block which would result in a delay in the block finality. Zilliqa on the other hand eliminates the requirement of accessing the whole block by including the process called ‘Sharding’. 

Using ‘Sharding’, the network is split into multiple pieces or shards which allows the nodes to process only a part of the network’s transactions. Here each Shrad acts as its blockchain which processes the transactions and adds new blocks to a specific shard chain called Microblocks. Further, these Microblocks are combined and added to the Zilliqa blockchain. 

Zilliqa Consensus Mechanism

Zilliqa uses a consensus mechanism which is a combination of Proof-of-Work(PoW) and Practical Byzantine Fault Tolerance(pBFT). As PoW requires the previous block to propose the new block, tricking the other nodes is extremely difficult as a lot of computing power is required. 

And on the other hand, pBFT governance mechanism helps in syncing the distributed network of computers. The Zilliqa team believes with the use of PoW and pBFT, a secure network or mechanism that allows mining with lower costs computing is possible. 

Will ZIL Price Hit $0.5 in 2022?

Zilliqa price rallied like a monster amid the 2021 bull run which spiked above everyone’s expectations. But woefully, the ZIL price plunged massively, draining more than what it had gained during the bull run. And hence currently swinging within the price zone much below the beginning of the 2021 bull run, the possibilities of rebounding and spiking high is negligible. 

The bearish trend is not eliminated despite the recent recovery, as the rebound is extremely negligible compared to that of the plunge. However, in the short term, the ZIL price is attempting to go long after hitting monthly lows below $0.04. The asset is required to maintain the current uptrend and range high to hit the immediate resistance at $0.066 and continue to hit the mandatory resistance at $0.106 piercing through $0.09 levels. And then a notable uptrend may be certified. 

Maintaining the current pace, the ZIL price may end up hovering between $0.10 to $0.15 till the end of 2021. While in an extended uptrend or a bull rally, the price may hit the $0.15 levels by Q3 2022 and may attempt to surge close to its ATH but may not form a new one. 

Factors Impacting ZIL Price Today

Sharded Mainnet

Zilliqa is the first blockchain that enables a sharded network on its mainnet and hence enables faster and cheaper transactions

Zilliqa’s Scilla

Scilla is a custom-run programming language used by developers to build smart contracts and design new dApps. Scilla is much easier to understand and more secure, acting as a remedy for the security vulnerability of the other common languages. 

Global Adoption

The Zilliqa framework has not seen an exponential community expansion which is required as per the project’s fundamentals. Hence a significant global adoption may be fast approaching as no notable setbacks or network flaws have been recorded so far. 

Highly Secured Network

Instead of using a single consensus mechanism, Zilliqa uses a combination of PoW and pBFT to ensure the security of the network. 

Huge Development Team

The Zilliqa development team is pretty dedicated and is constantly working on upcoming upgrades and hence laying the hope for the ecosystem to grow and thrive. 

Where & How to Buy Zilliqa(ZIL)

Investing in Zilliqa(ZIL) or any other crypto asset like Bitcoin(BTC), Ethereum(ETH), Ripple(XRP), etc is extremely simple in CoinDCX. We offer a wide range of cryptocurrencies with multiple benefits other than just smooth trades. On registering with us, one can unlock the world of faster trade order placements, unlimited chart access with indicators, a unique user experience, and much more at just a single touch. 

Registering with CoinDCX is very easy,

  • Download the CoinDCX App
  • Enter the required details
  • On verification, fund your wallet and trade!

Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information, or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment, or tax advice by the reader. The calculations, data, risk-return formulations, performance, or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors, or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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