The power of blockchain technology and the projects that are built on top of it are fascinating, and various crypto projects have found firm ground in the hands of fintech and DeFi in the recent past. The demand for scaling decentralized platforms to support more throughput (transactions per second) has led to the creation of many promising blockchain projects or protocols. Today we will analyse one such – Elrond – an innovative blockchain project that have been making its name by scaling the decentralized network.
Elrond is a public blockchain that has a high throughput and is focused on providing scalability, efficiency, interoperability and security by adopting two crucial elements: A new SPoS (Secure Proof of Stake) consensus mechanism and ASS (Adaptive State Sharding). Its smart contract execution platform is reportedly capable of 15,000 transactions per second, six-second latency and a $0.001 transaction cost.
It is not only a blockchain protocol that facilitates high transaction throughput but can be thought of as a complete Fintech, IoT and DeFi ecosystem that offers a secure & scalable platform for developing distributed applications, also known as DApps.
EGLD or eGold is the native token of the Elrond blockchain and is used for staking and rewarding validators and for paying network fees. The token is used by all the users on the Elrond network to send transactions, interact with applications and incentivize participants who are supporting the network.
The EGLD token has a maximum supply of 31 mil. out of which more than 19 mil. are already in circulation. The token ranks among the top 30 cryptocurrencies with a price tag of around $377 per token with more than $7 billion market capitalization.
Source: TradingView, Binance
The EGLD token started 2021 with a price tag of less than $25 per token and hit an all-time high of $531 on November 23, a 2,000% increase in value in just 11 months.
Between October to November, EGLD more than doubled in value, from a low of $197 to a peak of $531. The massive run spawns several supports via fibonacci retracement levels, and ELGD has been correcting and bouncing off them ever since. It is currently holding support at $370. While the RSI is bottoming out and EGLD is expected to rise from here, it will find strong support at $329 and $314 in case of a further dip.
EGL’s 20-day moving average - positioned at $385, is currently acting as resistance and causing rejections. If it is overcome, another key level at $448 will need to be tackled.
The Elrond platform is made for the new internet economy, one with decentralized applications and industry use. The platform seeks to establish its native token EGLD as a store of value asset and further develop its ecosystem.
Its main unique feature is its high scalability and states itself to be the first-ever blockchain network where network, state, and transaction sharding have all been implemented together.
Elrond is building such an innovative decentralized world that it is bound to become one of the most holistic blockchain platforms, a place where every active user in the network will be able to benefit from the platform in some way or another.
Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.