MultiversX Rebranding
Formerly known as Elrond, MultiversX is a scalable, fast, and secure blockchain platform tailored for decentralized apps, enterprise use cases, and the evolving internet economy. In November 2022, Elrond rebranded to MultiversX to align with its new direction in metaverse development. As part of this transformation, MultiversX introduced three metaverse-driven products: xFabric, xPortal, and xWorlds.
Designed to power innovative applications for users, businesses, and society in the metaverse, MultiversX combines familiar blockchain features like smart contracts, token issuance, and transaction settlement with cutting-edge new tools.
Many experts believe that MultiversX is one of the most scalable blockchain infrastructures globally, aimed at solving key challenges critical to global adoption.
Transition from PoS to SPoS
At the heart of MultiversX is Secure Proof of Stake (SPoS), an advanced proof-of-stake consensus mechanism that secures the network and validates transactions. The platform’s “Adaptive State Sharding” technology splits the nodes into subsets to process transactions. Once verified, the data is transmitted to the metachain, MultiversX’s central blockchain, for settlement.
According to official sources, transactions on MultiversX are exceptionally low-cost, at just $0.05 per transaction, and are carbon-negative, as all energy consumption is offset.
MultiversX is expanding its capabilities, with recent updates including integration for Bitcoin and Ethereum through the MultiversX Bridge. These integrations aim to offer users access to the platform’s lightning-fast, low-cost transactions and innovations.
BTC & ETH Integration with MultiversX
Through enhanced interoperability, Bitcoin and Ethereum now enjoy the same seamless access as MultiversX’s native tokens, enabling decentralized finance (DeFi) protocols and other ecosystem products to integrate with these assets. The MultiversX team highlighted:
“The seamless integration of BTC & ETH into MultiversX is a significant milestone that will substantially boost ecosystem liquidity, exposure, and accessibility. We anticipate these assets to be rapidly integrated into multiple protocols, paving the way for new opportunities. Our goal is expansion across all aspects of the platform, including new product launches, user and developer onboarding, protocol upgrades, and interoperability with additional chains and assets through the MultiversX Bridge.”
EGLD plays a central role in supporting MultiversX’s network, enabling transactions, rewarding contributors, and running smart contracts. With a maximum supply of 20 million EGLD tokens, users can participate in staking to vote on network upgrades. EGLD’s growth in 2021 was marked by significant price surges, with an all-time high of $541.50 in November.
EGLD’s Current Status
The price of EGLD has dropped to $30.42, down over 40% from its 2023 highs, and the potential for further decline remains. EGLD is highly volatile, making it a risky asset. Broader market dynamics, including regulatory pressures and economic factors, will also influence EGLD’s price.
The U.S. Securities and Exchange Commission’s actions, along with recession concerns and aggressive central bank policies, will continue to impact the crypto market in the coming weeks. Investors should take a defensive stance given the ongoing volatility. Typically, during market crashes, panic selling occurs, and EGLD may struggle to maintain its current price levels.
Technical Analysis for EGLD
Since April 27, 2023, EGLD has dropped from $52.44 to $28.28, with the current price at $30.42. The $30 level could be difficult for EGLD to maintain in the coming days. If the price falls below this threshold, it might test the $28 level.
Key Support & Resistance Levels for EGLD
While the start of 2023 saw a successful performance for EGLD, the asset has been under pressure since late April. Critical support and resistance levels help traders predict potential price movements. On the recent chart (from October 2022), we identified key support at $30. If EGLD rises above the $35 resistance, it could reach $40. A break below the $30 support would trigger a sell signal, pushing the price closer to $28. A further drop below $25 could lead to $20 as the next support level.
Factors Supporting a Price Increase for EGLD
The general sentiment of the cryptocurrency market will play a crucial role in EGLD’s price movement. If investor confidence returns and the market recovers, EGLD could benefit from this positive shift, alongside other major cryptocurrencies. Technical analysis suggests that EGLD remains in a bearish market, but a move above $35 could open the door to $40 resistance.
Indicators of Potential Decline for EGLD
The reduction in whale transactions, specifically those over $100,000, suggests a lack of confidence in EGLD’s short-term price prospects. If whales continue to shift their investments elsewhere, EGLD’s price could see a more significant decline. Additionally, EGLD’s price is often influenced by Bitcoin’s price, so any drops in Bitcoin could negatively affect EGLD as well.
Сарапшылар мен сарапшылардың пікірлері
Recent data showing slower-than-expected inflation in the U.S. has prompted some market optimism, although analysts warn of economic contraction ahead. Goldman Sachs forecasts that inflation will continue to pose challenges, and a contraction in corporate earnings could impact markets. The SEC’s increasingly aggressive stance toward cryptocurrencies also adds uncertainty.
Wells Fargo analysts expect a 10% correction in U.S. stocks over the next 2-3 months, which could negatively impact EGLD.
Жауапкершіліктен бас тарту: Cryptocurrencies are highly volatile and may not be suitable for all investors. Never invest more than you can afford to lose. This site provides educational content and should not be considered investment advice.
