- Zilliqa price has crashed by more than 95% from the all-time high.
- The network has seen the number of users plunge in the past few months.
Zilliqa price has been under pressure in the past few months as its ecosystem woes continue. The ZIL coin was trading at $0.0164, where it has been in the past few days. This price is down by more than 55% from the highest level this year. It has also plummeted by over 95% from the all-time high.
Zilliqa is a layer-1 network that introduced features that have now been embraced by other networks like Ethereum and Near Protocol. Its most important feature is sharding, which helps to boost the speed of a network. Sharding works by dividing the blockchain into smaller partitions called shards.
The challenge for Zilliqa is that its ecosystem has underperformed in the past few years. For example, data compiled by DeFI Llama shows that the network has seen its total value locked (TVL) has crashed to just $4.16 million. At its peak, Zilliqa had over $230 million in assets. In ZIL terms, the network has almost 250 million ZIL, lower than its all-time high of 850 million ZIL.
Read more: How to buy Zilliqa.
Additional data by DappRadar shows that most dApps in its ecosystem are seeing little or no usage. Data by DappRadar shows that the biggest player in the ecosystem is Zilswap, which has had just 680 Unique Active Wallets (UAW) in the past 30 days. Its volume was about $2.8 million.
The other dApps in the Zilliqa ecosystem are Avely Finance, Luncrush, and ZilPay Wallet. Avely Finance has had just 282 UAW in the past 30 days while Luncrush and ZilSwap have 147 and 70, respectively. This is a sign that the network is not seeing enough growth.
Zlliqa has underperformed other chains because of the rising competition in the past few months. In addition to traditional networks like Ethereum, Tron, BNB Chain, and Polygon, Zilliqa is seeing competition by new chains like of Coinbase Base, Optimism, Arbitrum, Ultron, and Kava.
