Elrond or EGLD is a 100% Romanian cryptocurrency and was created in 2017 by a team consisting of brothers Beniamin and Lucian Mincu, together with Lucian Todea. The project received its first funding in 2019, but only became truly popular in 2020.
The core feature of the blockchain created by Elrond is the fast transaction speed. Elrond can reach up to 15,000 transactions per second. For context, imagine the Bitcoin blockchain operating at a speed of 15 transactions per second.
This is an overview of Elrond crypto, but let’s get down to the more interesting details.
Why is Elrond(EGLD) relevant?
The network has three important features that make it different from the rest of the blockchains:
Elrond uses Adaptive State Sharding (Adaptive State Sharding), which involves splitting data into several smaller pieces. The chunks are then distributed across multiple areas of the network and processed by the nodes of that area. This technique underpins the efficiency of the network and the large number of transactions that can be performed.
Also, the protocol that Elrond crypto works with is called Secure Proof of Stake . It is a mechanism that keeps all the computers running for the blockchain synchronized.
Elrond VM or Elrond Virtual Machine is another important component of blockchain that allows developers to write smart contracts in different programming languages.
Elrond (EGLD) price: factors holding it in place
Currently, the Elrond price remains relatively stable or even stagnant. This period of the cryptocurrency is influenced by a number of external or internal factors. To find out concretely what this is, we need to analyze these factors.
General market sentiment
The crypto market is currently in the Bear Market phase of the cycle. The general sentiment is bearish – by definition investors are pessimistic about the state of the market. As a consequence to this sentiment comes reluctance to sell and falling prices. Also, Elrond crypto represents a special case for investors, because in 2022 the blockchain was shut down, and in the following period the price fell drastically. From a high of USD 541 in November 2021, it reached after a year the value of USD 43. At the moment, the price of Elrond (EGLD) is USD 26.3, with a rising trend.
Growing competition and rivalry with other cryptocurrencies
A significant reason why the Elrond cryptocurrency Elrond is in somewhat stagnation is competition. Intense competition from other similar projects means that the price of EGLD is unable to increase rapidly. Rival layer-1 blockchains such as Solana, Avalanche and Polkadot are good options with their own strengths, which creates pressure on Elrond and the cryptocurrency’s adoption. Although the technology brought by Elrond is innovative, the growth potential is dwarfed by other similar cryptocurrencies.
Crypto market volatility
One word that could well describe the crypto market is volatility. This characteristic of the market makes stabilizing Elrond difficult. At the same time, smaller cryptocurrencies react as in a domino effect to fluctuations of the most valuable cryptocurrencies such as Bitcoin or Ethereum. Elrond cryptocurrency is no exception to this “rule” and its price is suffering.
Elrond price predictions in Bull Market
While accurately predicting the price of a cryptocurrency can be nearly impossible, there are certain sources that provide a range between which cryptocurrencies could rise. However, best practices are information and analysis. In the following we discuss possible scenarios.
Technical analysis of the cryptocurrency path
As we enter the Bull Market phase, technical analysis is essential to try to predict Elrond price changes. In order to do such analysis, you will need to learn about Moving Averages and Relative Strength Index. These concepts can help you get information about possible price trends in Bull Market.
You can also help yourself with different patterns such as ascending triangles or cup and handle. The basic idea is to use these patterns to identify “patterns” in the history of cryptocurrency fluctuations. Although these methods require time and attention, they can provide valuable insights into a cryptocurrency’s behavior in the Bull Market.
Correlation with the performance of other cryptocurrencies
The overall performance of Elrond crypto is also influenced by the performance of the market itself, but also by the two big cryptocurrencies Bitcoin and Ethereum. At the same time, it is also important to know that after they attract liquidity, crypto investors are also shifting their funds to othercoins, including Elrond.
When the market is in Bull Market the price increase is a normal phenomenon. However, the price still remains volatile. There will be periods when the value of a cryptocurrency will reach new highs, and then go down, and then up again.
Adoption of Elrond(EGLD) technology
As a cryptocurrency’s blockchain technology becomes widely accepted, its price and usefulness will increase. Basically, with the technology being more widely used, the cryptocurrency itself will also be in greater demand. Adoption may be spurred by the expanding use of the technology in neighboring sectors such as DeFi (Decentralized Finance).
In the past, EGLD has benefited from a boost in price due to its collaboration with Maiar Exchange. However, through a security breach on the platform, hackers managed to steal a large amount of EGLD, and the cryptocurrency’s price has dropped again. Instead, the main idea remains, and the adoption of the technology by third parties will result in the price of EGLD rising.
At the moment the cryptocurrency is stable, but the growth of Elrond may be influenced by a number of factors. One thing is certain – the technology behind the cryptocurrency is innovative and it has potential, as it has shown us in the past. EGLD is worth watching, especially in the Bull Market period to come. You also need to prepare for market volatility with the right resources. At Abarai, we offer buy/sell as well as exchange services at extraordinary speeds, with no identification required. Use the platform to trade to your advantage.