Elrond or EGld is a 100% Romanian cryptocurrency and was created in 2017 by a team made up of the brothers Beniamin and Lucian Mincu , along with Lucian Todea . The project received the first funding in 2019, but it became really popular only in 2020.
The basic feature of the blockchain created by Elrond is the speed of fast transaction. Elrond can reach up to 15,000 transactions per second. For the context, imagine that the Bitcoin blockchain operates at a speed of 15 transactions per second.
This is a general presentation of Elrond Crypto, but let's move on to more interesting details.
Why is Elrond (EGld) relevant?
The network has three important features that make it different from the rest of the blockchain:
Elrond uses the fragmentation of the adaptive state (adaptive sharing) that involves dividing the data into several small pieces. Later, the brakes are distributed in several areas of the network and are processed by the nodes of the respective area. This technique is the basis of the efficiency of the network and the large number of transactions that can be performed.
Also, the protocol with which Elrond Crypto works is called the proof of the safe stake (Secure Proof of Stake). It is a mechanism by which the synchronization of all computers running for blockchain is preserved.
ELROND VM or ELROND Virtual Machine is another important component of blockchain that allows developers to write smart contracts in different programming languages.
Price Elrond (EGld): Factors that hold it in place
Currently, the price remains relatively stable or even stagnant. This period of cryptocurrency is influenced by a number of external or internal factors. To find out concretely what it is, we must analyze these factors.
The overall market feeling
The crypto market is currently in the Bear Market phase. The general feeling is one "bearish" - by definition the investors are pessimistic about the state of the market. As a consequence of this feeling comes the reluctance to sell and lower prices. Also, Elrond Crypto is a special case for investors, because in 2022 the blockchain was closed, and in the next period the price dropped drastically. From a maximum of $ 541 in November 2021, it reached a year of $ 43. Currently, the price ELROND (EGld) is $ 26.3, with a growth trend.
Increasing competition and rivalry with other cryptocurrencies
A significant reason why the cryptocurrency elnond is in some stagnation is the competition. The intense competition from other similar projects makes the price of EGld not be able to increase quickly. Layer-1 rival blockchain such as Solan, Avalanche and Polkadot are good options, with their own strengths, which create pressure on ELRond and the adoption of cryptocurrency. Although the technology brought by Elrond is innovative, the growth potential is reduced by the other similar cryptocurrencies.
The volatility of the crypto market
A word that could describe the crypto market is volatility. This market feature makes Elrond stabilization difficult. At the same time, smaller cryptocurrencies react as in a domino effect to the most valuable cryptocurrency fluctuations such as Bitcoin or Ethereum. Elnd cryptocurrency is no exception to this "rule", and its price has to suffer.
Predicts for Elrond Price in Bull Market
While the exact preconception of the price of a cryptocurrency may be almost impossible, there are certain sources that provide an interval between which cryptocurrencies could increase. However, best practices are information and analysis. In the following we will discuss the possible scenarios.
Technical analysis of cryptocurrency
In the context of the entry into the Bull Market phase, the technical analysis is essential to try to foresee the ELRond price changes. In order to do such an analysis, you will need to learn about Moving Averages and Relative Strength Index. These notions can help you get information about possible price trends in Bull Market.
You can also help different models such as: upward triangles or Cup and Handle. The basic idea is used by these models to identify "patterns" in the history of cryptocurrency fluctuations. Although these methods require time and attention, they can provide valuable details about the behavior of a cryptocurrency in Bull Market.
Correlation with the performance of the 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 important to know that after they attract liquidity, investors in crypto are heading their funds to Altcoins, including Elrond.
When the market is located in Bull Market the price increase is a normal phenomenon. However, the price is still volatile. There will be periods when the value of a cryptocurrency will reach new odds, and then descend, and then climb again.
Adoption of Elrond Technology (EGld)
As the blockchain technology of a cryptocurrency is widely accepted, the more its price and usefulness will increase. Basically, the technology being more often used, and cryptocurrency itself will have a higher demand. Adoption can be stimulated by the extension of the use of technology in neighboring sectors, such as Defi (decentralized Finance).
In the past, EGld has benefited from a price increase due to collaboration with Maiath Exchange. However, through a breach in the security of the platform, hackers managed to steal a large amount of EGld, and the price of cryptocurrencies decreased again. Instead, the main idea remains, and the adoption of technology by third parties will result in the increase of EGld price.
Currently cryptocurrency is stable, but ELRond growth can 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 the pursuit, especially during the Bull Market period. You also have to prepare for the volatility of the market with the right resources. At Abarai we offer purchase/sale services as well as exchange at extraordinary speeds, without the need for identification. Use the platform to be able to trade to your advantage.
