A deeper look into Zilliqa – Will ZIL price surge?

A relatively growing cryptocurrency that has been slowly gaining attention throughout the last few years is Zilliqa (ZIL).

Zilliqa’s historical price patterns and its future plans are important aspects that need to be considered before deciding to invest in it. Not only that, but you should also know about the background of Zilliqa in itself to have a better understanding of the nature of this cryptocurrency. 

So, whether Zilliqa is/was a good investment, or if it is worth holding (HODLING) your Zilliqa investments for the long run, we will find out in this article.

What is Zilliqa (ZIL)?

Let’s look at the background foundation of Zilliqa (ZIL).

Zilliqa was found in 2017 by researchers from the University of Singapore. Many people praise the team that runs Zilliqa as one of the greatest cryptocurrency teams of developers due to their knowledge and skills in the field of cryptocurrencies. The team consists of Xinshu Dong, the CEO of Zilliqa; Prateek Saxena, Chief Scientific Advisor; Amrit Kumar, head of research, etc.   

But, what makes Zilliqa (ZIL) so unique from other cryptocurrencies?

For starters, Zilliqa provides solutions for the scalability issues found on other blockchains. Compared to Zilliqa (ZIL), other cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) offer slower and more expensive transactions. Why does this not apply to Zilliqa?

Zilliqa (ZIL) is one of the first and few cryptocurrencies that runs its network through sharding. 

Sharding is the process of dividing a group of nodes into smaller nodes and then connecting them parallel to each other so that they still work together. To illustrate, if there are 2400 nodes running in the Zilliqa (ZIL) blockchain, sharding makes it possible to divide these nodes into four groups with 600 nodes each.

Since having more nodes in a single network requires more time to process information from the nodes to the blockchain, sharding ensures much faster and efficient information processing. Each divided set of nodes compile information and then combines it with the other sets of nodes to add the new block of information to the blockchain. 

So this is why Zilliqa (ZIL) transactions are verified and confirmed in a matter of seconds, while big cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are unable to do so. However, it is worth mentioning that Ethereum plans to follow the same method as Zilliqa in the future.

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Source: Zilliqa

But sharding is not the only reason why Zilliqa transactions are much faster. Zilliqa uses a hybrid system of both Proof-of-Work (POW) and Byzantine Fault Tolerance (BFT). POW is used by new nodes to establish an identity through trapdoor mathematical functions.

After the nodes are successfully established, BFT is used among nodes as a consensus mechanism. This makes it possible for nodes not to need to verify transactions multiple times as in the case of other cryptocurrencies (i.e. Bitcoin). This is one of the reasons why transactions in Zilliqa are done such efficiently.

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Zilliqa (ZIL) transactions per second with only 3600 nodes. Source: Zilliqa.com
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The transaction speed of Zilliqa compared to legacy blockchains. Source: Zilliqa.com

As a result of this scalability, Zilliqa (ZIL) gas fees are much lower than gas fees of other cryptocurrencies.

Zilliqa also runs through smart contracts. These smart contracts are written in a programing language that is exclusive only for the Zilliqa network, named Scilla. Scilla was developed to ensure a safe and stable organization of smart contracts.

The Zilliqa (ZIL) coin is often referred to as Zilling, or simply ZIL. Zilliqa has a limited supply of 21 Billion coins.

Zilliqa (ZIL) 2021 Price Analysis

Since the basics of Zilliqa are now covered, let’s look at the price timeline of Zilliqa and, and then see how it relates to its price in 2021.

Just like other cryptocurrencies, Zilliqa raised funds from ICO or private funding back in 2017. Initially,  Zilliqa raised around $20 million. This amount was used to develop and successfully launch the Zilliqa project. By the first week of 2018, another $22 million were raised. 

According to Coinmarketcap, Zilliqa had a starting price of $0.11. Because everyone who had ZIL from the ICO was tempted to sell their assets immediately due to the fear of missing out on profits, Zilliqa’s price started going down and went as low as $0.04 in April 2018. However, this was the turning point for Zilliqa because the price started increasing again, reaching around $0.20 in the following month. This was the highest price of Zilliqa ever since it was released and remained at its highest price for almost three years. 

After a long bearish market run (2018 to late 2020), Zilliqa started slowly increasing again. Entering 2020, Zilliqa had a price of approximately $0.08 and was constantly increasing along with many other cryptocurrencies that started increasing by the end of 2020 and the beginning of 2021. The price of Zilliqa reached as high as $0.15 in February 2021, and it circulated within that range in the month of March as well.  Zilliqa reached its highest ever price on the first week of April 2021, which was $0.22.

With a market cap of $2.3 billion as of April 2021, Zilliqa is still a mid-cap cryptocurrency (less than $10 billion), and it is ranked in the top 60 of all the cryptocurrencies in the market. Many would assume from this data that even though Zilliqa was and still is one of the most innovative cryptocurrencies, it has not lived up to its potential and people’s expectations. However, the fact that Zilliqa has not fulfilled price expectations so far only suggests that it has more potential to grow, whether that is long term or short term. 

So let’s now look at what expert and credible predictions have to say about Zilliqa’s price for the remainder of 2021.

Zilliqa (ZIL) 2021 Price Prediction

We are not halfway through 2021 yet, so a lot of changes can occur in the crypto market. The same applies to the price of Zilliqa.

Digitalcoin predicts that the price of Zilliqa may not experience fluctuation. The prediction states that the price of Zilliqa can circulate around $0.30 throughout the rest of 2021, with the highest price being around $0.34 by September 2021.

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Zilliqa (ZIL) price prediction for 2021. Source: Digitalcoin

Tradingbeasts has a slightly similar prediction to Digitalcoin. The former predicts that the minimum price throughout the year could be around $0.22 and the maximum around $0.32. So Tradingbeasts predicts a less volatile price for Zilliqa throughout the remainder of 2021.

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Zilliqa (ZIL) 2021 price prediction. Source: Tradingbeasts

Other prediction sites have relatively similar predictions for Zilliqa in 2021. These predictors believe that the price of Zilliqa is at equilibrium and has a tendency to neither increase nor decrease at the moment or at least for this year. 

Will Zilliqa (ZIL) Reach $1?

Not necessarily everyone agrees to the above-mentioned price predictions. Others expect that the price of Zilliqa may actually reach $1 or even exceed that amount. 

For instance, the YouTuber Cryptomobster gives a careful analysis of Zilliqa and its price, and he predicts that Zilliqa can reach $1 very soon. In fact, earlier this year he predicted that Zilliqa can even go as high as $1.80, which is almost 9 times more than its current price.

Long-term Price Predictions for Zilliqa (ZIL) 2022, 2023, 2024 and 2025

But what about Zilliqa’s price in the long run? Here is what the experts have to say about its price halfway through the decade.

Digitalcoin predicts that in 2022, the price of Zilliqa may reach an average maximum of $0.40. This means that Zilliqa can double in value within a year. As for 2023, Digitalcoin does not predict any major price changes, with the price range being from $0.35 to $0.46. In 2024, the price may go up again. The average price can range from $0.42 to $0.57, with the latter being a 182% change from the current price. Last but not least, Digitalcoin estimates a 237% price increase of Zilliqa by the end of 2025, circulating around $0.69.

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Zilliqa price prediction 2021-2025. Source:Digitalcoin.com

Walletinvestor predicts that the price of Zilliqa can reach $0.48 by 2022. In 2023, its price can range from $0.40 to $0.60. By 2024, Zilliqa may reach a maximum price of $0.80. This price is a 247% increase from Ziliqa’s current price. As for 2025, Walletinvestor predicts that the price may go as high as $0.97, which would be the highest price of Zilliqa for the first half of this decade.

As for other predictors, most of them also forecast a steady increase in the price of Zilliqa.

Tradingbeasts predicts that Zilliqa price may reach a maximum of $0.37 by the end of 2022, and the average price circulating around $0.27. In 2023, Tradingbeasts suggests that the price of Zilliqa (ZIL) can reach around $0.43 with the change being around twice more than its current price in April 2021. By 2024, the prediction states that Zilliqa may have a relatively low increase, with the highest price being around $0.46. 

Judging by these predictions, Zilliqa’s price may not fall in the future. Investors are optimistic about the long-term price of Zilliqa because it is one of the few cryptocurrencies that work with this much efficiency, so large investors may favor the scalability of Zilliqa to complete transactions as well as drive its price higher.

What Potential Factors Can Affect the Price of Zilliqa (ZIL)?

So what influences the price of Zilliqa (ZIL)?

There are a lot of factors that come into play when it comes to the price of cryptocurrencies and in this case, the price of Zilliqa:

  • Supply and Demand

    One of the main price determiners is the relation of supply and demand. When it comes to supply, around 11 billion out of the limit of 21 billion Zilliqa are in circulation. As the supply gets scarcer, demand increases, which as a result causes a shortage. This shortage then can drive the price of Zilliqa higher.  

  • Mining Reward

    The more a node is rewarded for mining, the more inflation is promoted for that cryptocurrency.

  • Popularity

    Popularity is definitely one of the most important price factors for any cryptocurrency. The same applies to Zilliqa. If ZIL would trend on more crypto communities in social media, its price may go up due to the inclination to buy because of the fear of missing out (FOMO)

  • Growth Potential

    Since price timeline and predictions suggest that Zilliqa has not fulfilled its growth potential, there is still room for growing into a large-cap cryptocurrency.

  • Competitors

    Another factor that influences the price of Zilliqa is its competitors. Some cryptocurrencies have similar functions as Zilliqa. When these competitors prosper, not the same can be said about Zilliqa, and vice-versa. Some of these competitors are Polkadot, Solana, Cosmos, etc.

What’s Next for Zilliqa (ZIL)? What to Expect in 2021?

In general, the future of Zilliqa looks promising and can even exceed expectations. While the price may not be increasing at bigger rates, the Zilliqa network is expanding as more people are becoming aware of its potential.

Is Zilliqa (ZIL) a Good Investment?

Considering the possibility that ZIL price may increase, its high liquidity and scalability, as well as its low price, Zilliqa is a good investment for anyone. No one can know for sure what the price can be in the future, but buying a few ZIL will not be costly for anyone and can be worth HODLING for the future. One thing is for sure: Zilliqa has a lot of room to grow.

Takeaways

  • Zilliqa was found in 2017 by researchers from the University of Singapore.
  • Zilliqa (ZIL) is one of the first and few cryptocurrencies that runs its network through sharding, which is the organization of nodes into parallel groups of 600 nodes each.
  • Its transaction speed is higher than a lot of other cryptocurrencies, and the gas fees are much lower.
  • Experts predict that ZIL price may remain relatively similar throughout 2021.
  • As for the next 5 years, the price is predicted to double.
  • Factors such as supply, demand, popularity, competitors, affect the price of ZIL.
  • The Zilliqa network is constantly growing, and so is the possibility that its price may increase in the future. 
  • Overall, Zilliqa (ZIL) is a good investment.

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