The Zilliqa price crashed to the lowest level since March 26th this year as demand for the coin retreated. The coin is trading at $0.676, which is about 70% below the highest level this year. As a result, the coin’s market cap has dropped to about $972 million, making it the 91st biggest cryptocurrency in the world.
Zilliqa demand has waned
Zilliqa is a blockchain project that helps developers build decentralized applications. It is well-known for introducing the sharding technology, which supercharges its speed by breaking blocks into smaller pieces known as shards.
Zilliqa has been used widely by developers seeking to build fast, safe, and highly reliable decentralized applications. Some of the most notable apps using its network are Atomic Wallet, Autofarm, and Carbon, among others.
However, unlike other popular platforms like Solana and Ethereum, most of its applications are relatively small. In fact, according to DeFi Llama, the ecosystem has seen its total value locked (TVL) crash to just $20 million. In contrast, other popular platforms like Ethereum have a TVL of over $100 billion. However, statistics by Zilliqa places the TVL at $363 million, which is a substantial figure.
Zilliqa used to be a fallen angel as competition in its industry escalated. It saw its ranking among the biggest cryptocurrencies in the world. Its popularity waned and it moved out of the top 100.
Zilliqa made headlines in March when it announced its entry to the metaverse by partnering with Metopolis. At the time, the coin’s price surged to a high of $0.2300, pushing it into the top 50.
Recently, however, the coin’s hype has faded while the number of activity has declined sharply. For example, the number of smart contracts has been in a major decline after peaking in March. The number of new addresses in the network has also declined.
Zilliqa price prediction
The four-hour chart shows that the ZIL price has been in a strong bearish trend in the past few weeks. The decline accelerated after the pair crossed the key support level at $0.1010, which was the lowest level on April 17th. It has also moved below the 25-day and 50-day moving averages while the Stochastic Oscillator has moved below the oversold level.
The Relative Strength Index has also moved to the oversold level. Therefore, the Zilliqa price will likely continue dropping as bears target the key support level at $0.05 in May. Learn how to trade cryptocurrency here.