Bitcoin (BTC) and Ether (ETH) have been in the limelight over the past month as each rise reached new yearly records. Investors tend to focus their energies on cryptocurrencies with a higher cap, which results in currencies with smaller cap outside the top ten being ignored.
For example, Zilliqa (ZIL) increased 69% in the last 30 days. Despite this impressive performance, the alt has been much worse than Ether in the past six months.
The project was established in 2017 by researchers at the National University of Singapore who wanted to make smart contracts scalable. ZIL is currently ranked 49th on CoinMarketCap, ahead of some of the big names like Decred (DCR) and Basic Attention Token (BAT).
The decentralized economy (DeFi) may have contributed to the recent upward trend, but prices and voting control alone are not sufficient to keep prices high.
The project now badly needs user acceptance of dApps and setting the total value to prove its strength for Ethereum leader.
Zilliqa (ZIL) at ETH and USDT. Source: Data on digital assets.
The chart above shows how ZIL’s price has been behind that of Ether (ETH) by 42% in the past six months, despite the profit gains. Coincidentally, Zilliqa’s design relies on cutting, allowing parallel processing, similar to Eth2’s proposal.
With the DeFi sector growing rapidly with a new influx of users who wanted high percentages of crop growth, it became apparent that the industry needed more options to deal with increases in transactions and fees.
Zilliqa uses a modified version of the Proof of Work consensus protocol and Scilla’s proprietary programming language. As such, it makes sense to compare performance with the leader in the smart contract industry
Games and partnerships are behind the recent price increases
April saw the release of Zilliqa v.6.2, which focused on usability, memory, performance improvements, and stacking support. This version also changed the number of Zilika’s shear knots from 520 to 250, which greatly increased community participation.
After months of waiting in mid-June, the project finally announced its stake, including partnerships with KuCoin and Binance. These announcements were followed by a meeting that gave Zilika the highest airfare since April 2019.
Recent events bode well for Zelika’s price.
Zilswap, the first decentralized exchange managed by Zilliqa, was launched on October 5. Interestingly, DEX is running on the NEO blockchain.
The release of the non-storage game Zilliqa took longer than expected and finally launched on October 14th. However, it was an immediate hit to the community and investors, who posted more than 1 billion ZILs in the first few hours. By October 15, more than 25% of the circulation supplies had been delivered.
The team also announced a leadership vote, another long-awaited feature the community is looking forward to. The positive momentum of ads and the price recovery continued in October with the launch of Pillar Protocol, a stable currency algorithm app.
The Zilliqa mainnet upgrade to version 7.0 is scheduled for December 21st, and this upgrade will reduce storage usage and allow miner voices to be linked to PoW transmissions.
TheTie’s data also shows that the price increases were accompanied by fluctuations in ZIL’s daily emotional appreciation. Historically, this was a stagnant moment in ZIL prices.
Fortunately, if there is sufficient reason for the upcoming v7.0 mainnet launch, the token price may continue its recent uptrend.
However, Zilika’s investors participated in the monthly updates and partnerships. Thus, price stagnation is normal in the absence of innovative ads in the past 30 days.
So far, Zilliqa dApps has not been very popular, which may limit the possibility of price hikes. The fact that DEX Zilliqa is being handled by another network could also be a potential problem for investors, as it does not give beginners confidence.