- Zetachain price has jumped by over 70% from its lowest point last week.
- The network launched its mainnet launch last week.
- It faces some risks, including competition in the layer 1 industry.
Zetachain price has pulled back sharply from its highest point last week as the recent momentum faded. The ZETA token was trading at $1.45 on Monday morning, much lower than last week’s high of $2.10. This price is still 75% above its lowest point last week, giving it a market cap of over $330 million.
What is Zetachain?
Zetachain is a blockchain project that aims to solve the interoperability challenge that has existed in the crypto industry for years. The number of blockchain projects has risen exponentially over the years, with the most notable names including Ethereum, Solana, Cardano, Polygon, and Tron.
To a large extent, there is a challenge in how these networks communicate with each other since they are built using different architectures. Zetachain is a layer-1 network that seeks to solve this challenge.
It does this by ensuring that dApps created in the ecosystem can communicate with those made by other layer-1 networks. It does this by ensuring that its nodes observe events on external chains, reach consensus, and sign off to all connected chains. Zetachain also has omnichannel smart contracts and chain-agnostic message passing.
Zetachain token price has risen in the past few days as investors welcome it to the crypto industry. That’s because the developers launched the mainnet on February 1st after months of developing and testing. As part of this launch, the developers launched their first XP campaign, a loyalty program that will last for 30 days.
Zetachain price also jumped after the developers gained access to several bridging solutions to make the interoperability possible. Some of these networks are Eddy Protocol, Owito Finance, and Izumi Finance.
The next key catalysts for ZETA price, as we have seen in the past, will be exchange listings, which will likely start happening this week.
Potential risks ahead
Zetachain price has done well after the mainnet launch. However, the network faces several risks ahead that could impact its price. First, the layer-1 industry is currently saturated, with older networks like Ethereum, Solana, and BNB competing with newer ones like Sui, Sei, and Manta. As such, Zetachain will likely need to do something special to gain market share.
The other potential risk is the fact that many chains go public, gain some hype initially, and then fade away. We have seen that with several networks recently like XDC Network, Siacoin, Casper, and Skale Network. Therefore, Zetachain will need to work hard to maintain its relevancy. The best way to achieve this is to have a good ecosystem.
