Zilliqa (ZIL) price has come under intense pressure in the past few months as concerns about its ecosystem continued. The token has plunged to $0.02290 after soaring to a high of $0.045 in March this year, a 50% retreat.
Zilliqa ecosystem woes
Zilliqa, one of the pioneers in the blockchain industry, is not performing well as the sector gets crowded. The network, which introduced the sharding concept, has seen demand among developers and investors wane over the years.
A good way to look at its ecosystem growth is to focus on its Decentralized Finance (DeFi) industry now that NFTs have died.
Data by DeFi Llama shows that Zilliqa has just $5.5 million in total value locked (TVL). The platform only tracks 5 DeFi dApps in Zilliqa’s ecosystem: Avely Finance, ZilSwap, PlunderSwap, Ionise, and Pillar.
Ionise, a lending platform, has just $22k in assets, meaning that it has no market share. ZilSwap and PlunderSwap, which are Decentralized Exchanges (DEX), also don’t handle a lot of volume.
In contrast, some of the newest networks in the industry have grown their market share substantially in the past few months. Coinbase’s Base Blockchain has over $1.54 billion in assets while Blast has $1.5 billion. Merlin’s assets have jumped to $1.17 billion while Sui has $791 million. All these platforms have existed for less than a year.
Zilliqa’s performance is in line with other pioneer blockchains that have been passed by newer layer 1 and layer 2 networks. For example, IOTA has struggled to gain market share, with its ShimmerEVM network having just $4.7 million in assets.
Similarly, Cardano has just $58 million in DeFi assets while EOS, Algorand, and Hedera Hashgraph have less than $200 million in assets each.
Zilliqa (ZIL) price forecast
The daily chart shows that the ZIL price has been in a steep freefall in the past few months. It is hovering at its second support of Andrew’s pitchfork tool and has moved slightly below the 61.8% Fibonacci Retracement level.
Zilliqa has also tumbled below the Ichimoku cloud indicator and the Woodie pivot point indicator. Most importantly, the 200-day and 50-day moving averages are about to form a death cross, a popular bearish sign.
Therefore, Zilliqa’s outlook is extremely bearish for now, a move that could it see drop to the next psychological level of $0.020. The only hope for the Zilliqa token is if the developers announce an important development or if Bitcoin resumes its bull run.
Read more: How to buy Zilliqa.
