Elrond introduces enhancements in blockchain speed, scalability, cost, and user experience
Elrond is a highly scalable, fast, and secure blockchain platform designed for decentralized applications (dApps), enterprise use cases, and the evolving digital economy. This blockchain platform is developed by a team of seasoned entrepreneurs, engineers, and researchers with deep experience in the blockchain space, who are committed to integrating blockchain technology only when it provides genuine value.
Elrond aims to compete with major blockchains such as Ethereum and Zilliqa, offering significant improvements in speed, scalability, cost, and user experience, according to its official website.
Elrond employs two unique technologies: adaptive state sharding and proof-of-stake. These features allow the platform to process approximately 12,500 transactions per second. Sharding works by dividing the network into smaller segments or “shards” that independently process transactions before broadcasting them to the metachain (Elrond’s central blockchain) for final settlement.
The platform uses a Secure Proof of Stake (SPoS) governance mechanism to secure the network, validate transactions, and distribute newly minted EGLD coins. This system eliminates the computational inefficiency of Proof of Work (PoW) and is more energy-efficient than many other governance models.
Elrond has attracted significant interest, forming partnerships with key industry players like Binance, Bitfinex, eToro, Voyager, Kraken, OKX, Block Bank, Equalizer, Nash, Ultra, Cartesi, Holo Chain, and Matic. Notably, in August 2022, Elrond formed a partnership with the UK-based fintech company Revolut, which serves over 20 million customers across 36 countries.
“The most innovative and disruptive startups in the fintech space are increasingly gravitating toward crypto, bringing in unique talent and fully engaged communities. With a vision that extends beyond its own product and industry, Elrond is a game changer. We are thrilled to offer EGLD to Revolut’s customers, helping them realize their goal of an inclusive global financial system.”
– Beniamin Mincu, CEO, Elrond Network
Қазіргі жағдай
Elrond’s cryptocurrency, EGLD, is integral to the platform, serving as a medium for transactions, rewarding network participants, and powering smart contracts. The total supply of EGLD is capped at 20 million coins, and users can stake EGLD to participate in network governance and vote on upgrades. In 2021, EGLD experienced significant growth with extreme price movements in February, April, and September, culminating in its all-time high of $541.50 in November.
The current price of EGLD is $42.39, down more than 80% from its 2022 peak, and there is still a risk of further decline.
The federal funds rate is now in the range of 4.25% to 4.5% (the highest since 2007), and the general expectation is for a contraction in the economy over the next several months, which is likely to impact corporate earnings. Investors are currently shying away from riskier assets, and EGLD could potentially fall to even lower levels in the near term.
Technical analysis for Elrond (EGLD)
Since November 3, 2022, Elrond (EGLD) has dropped from $63.73 to $40.92, and the current price stands at $42.39. EGLD may struggle to stay above the $40 mark in the coming days, and a breach below this level could signal a potential drop to the $35 price point.
As seen in the chart below, EGLD has been trading within the $40–$60 range for some time. As long as the price remains below $60, it remains in the SELL-ZONE.
Key support & resistance levels for Elrond (EGLD)
In the chart from April 2022, I have highlighted key support and resistance levels to help traders assess potential price movements. The risk of a continued sell-off is still present, but if the price rises above $50, the next resistance target will be around $60. The current support level stands at $40, and a break below this level would be a signal to SELL, potentially leading to a drop to $35. If the price falls below the strong support level at $30, the next target could be $25 or even lower.
Factors supporting a potential rise in Elrond (EGLD)
Recent weeks have been difficult for the cryptocurrency market, with many coins suffering after the collapse of FTX. The upside potential for EGLD remains constrained for the time being; however, if the price moves above $50, the next resistance level could be at $60.
On Tuesday, U.S. consumer prices rose less than expected, but the U.S. central bank signaled that it would continue raising interest rates in 2023 to combat inflation.
Indicators pointing to further decline for Elrond (EGLD)
Elrond (EGLD) has lost over 40% of its value since November 3, and market participants should prepare for a possible further downward movement. The U.S. Federal Reserve raised interest rates by 50 basis points yesterday and indicated it would continue with rate hikes throughout 2023 to reduce inflation. The Fed now forecasts inflation, as measured by personal consumption expenditures, to rise to 5.6% this year, up from an earlier estimate of 5.4%. The FOMC statement noted:
“The committee expects that further increases in the target range will be necessary to achieve a monetary policy stance that is sufficiently restrictive to return inflation to 2% over time.”
Бағасы EGLD is closely correlated with Bitcoin, and if Bitcoin falls below the $17,000 mark again, this would likely have a negative effect on EGLD’s price.
Сарапшылардың пікірлері мен болжамдары
November was a tough month for the cryptocurrency market, with major coins suffering after the FTX collapse. The sentiment in the crypto market showed slight improvement on Tuesday following a smaller-than-expected rise in U.S. consumer prices, leading to hopes that the Federal Reserve might ease its aggressive rate hikes.
The federal fund rate now stands between 4.25%-4.5%, the highest level since 2007. With the U.S. economy facing the risk of recession, this could further dampen crypto market sentiment. Macroeconomic factors are currently driving the broader crypto market. Mike Novogratz, head of Galaxy Digital and former Goldman Sachs fund manager, stated that cryptocurrencies won’t see significant gains until the Fed shifts its policy from a hawkish stance to monetary easing.
Brian Quinlivan, Director of Marketing at Santiment, noted that the global economic situation remains fragile; investors have become reluctant to accumulate more coins, and traders are not confident in any major price increases soon. The consensus seems to suggest that EGLD’s price could decline even further before reaching the bottom of the ongoing bear market.
Жауапкершіліктен бас тарту: Crypto is highly volatile and may not be suitable for everyone to invest in. Never invest money that you cannot afford to lose. The information provided here is for educational purposes only and should not be construed as investment advice.
