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Zilliqa (ZIL) price has moved sideways in the past two months as the crypto winter continues. The token was trading at $0.017 on Tuesday, a few points above the year-to-date low of $0.0144. It has dropped by more than 54% from its highest point this year and by 93% from its record high in 2021.
Zilliqa user metrics disappoints
Zilliqa is a pioneering blockchain network that is best known for introducing sharding, a technology that has been embraced by other blockchains like Ethereum, Near Protocol, and MultiverseX, formerly known as Elrond.
Sharding is a layer-1 network that boosts the network speed of a network by slashing the size of blocks into smaller pieces known as shards. As a result, Zilliqa is able to handle thousands of transactions per second at a relatively low cost.
Zilliqa’s performance has been relatively disappointing in the past few months. For one, its ecosystem has been quite inactive as the crypto winter continues. Data compiled by DeFi Llama shows that Zilliqa has just $3.2 million in total value locked (TVL).
The DeFi TVL’s is significantly lower than that of other layer 1 and layer 2 networks like Ethereum, Tron, BNB Chain, Polygon, Arbitrum, and Base. This is a sign that many developers are preferring alternative blockchains to build their dApps.
Additional data by DappRadar shows that many dApps in Zilliqa are not doing well. ZilSwap, the biggest DeFi platform in the ecosystem had just 625 Unique Active Wallets (UAW) in the past 30 days. Its volume in that period crashed by 46.1%.
Meanwhile, Avely Finance’s volume has dropped by 40% while the number of active wallets was just 255k. Other dApps like Luncrush and ZilPay Wallet have done worse.
🌟 Just months since our launch, Avely has become the golden standard of #ZIL staking, mirroring success across multiple blockchains. Liquid staking isn’t just the future; it's here. Haven't started staking yet? The time is now with #Avely. 🚀 #DeFi #StakingRevolution #stZIL pic.twitter.com/2Mwy7K6W5y
— Avely Finance (@AvelyFinance) October 16, 2023
Zilliqa price forecast
The daily chart shows that the ZIL crypto price has moved sideways in the past two months. It is consolidating at the 25-day and 50-day exponential moving averages (EMA). Notably, the coin’s token has seen its volume retreat sharply as shown in blue.
ZIL has also formed a small inverted head and shoulders pattern, which is a bullish sign. Therefore, technically, there is a likelihood that the token will have a bullish breakout in the coming weeks. In the long term, however, the coin will likely remain under pressure unless its ecosystem makes a breakthrough.
The post Zilliqa (ZIL) ecosystem woes continues as UAW, TVL retreats appeared first on Invezz.