- Zilliqa price is sitting pretty near its November highs.
- On-chain metrics have worsened, with the number of transactions falling.
- Number of address growth and block rewards have plunged.
Zilliqa price has pushed slightly higher in the past few weeks and is holding slightly below its highest level since November last year. Like other cryptocurrencies, the ZIL token has jumped by over 97% from its lowest level in 2022.
Worrying on-chain metrics
Zilliqa is a leading blockchain project that boasts of superior speeds and lower costs, helped by its innovative sharding technology. It has been used to build hundreds of projects in the blockchain industry, including those in NFTs and decentralized finance (DeFi).
According to ZilStream, there are now 56 ZIL tokens that have a combined market cap of over $141 million. The biggest tokens in the ecosystem are Opulous (zOPUL), XCAD Network, Switcheo (SWTH). XSGD and Lunr among others.
Recent on-chain data shows that there is a divergence between Zilliqa’s price and on-chain metrics. As shown below, the network had 357,336 transactions this month. These increases have been in a strong downward trend after peaking at more than 4.7 million in April 2021. It has crashed to the lowest level since January 2020.
Find out how to buy Zilliqa.
Other numbers are not encouraging as well. Data shows that the number of address growth in the ecosystem has plunged to 13,529, the lowest point since August 2019. At its peak, the number of address growth was over 264k, which happened in February 2022.
Meanwhile, the amount of staked ZIL has stagnated. Data shows that there are now 5.6 billion staked Zilliqa tokens, which is lower than the all-time high of over 5.8 billion. This trend has continued slowing in the past few months. This is a sign that demand for Zilliqa remains significantly lower.
Another key data affecting ZIL price is the fact that block rewards have tumbled. In February, there have been 56 million block rewards. At its peak, there were over 174 million blocks.
Zilliqa price forecast
The daily chart shows that the ZIL price has been in a slow bullish trend in the past few days. This bullish momentum has started waning after the coin reached a high of $0.033, the highest point since November, It has moved slightly above the important 50-day moving average while volume remains quite steady.
Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the next key level to watch will be at $0.02.
