Zetachain’s price has steeply declined from its peak this past week as the current surge has waned. Monday morning’s trading price for the ZETA token was $1.45, far less than the $2.10 peak of the previous week. With a market valuation of more than $330 million, this pricing is still 75% higher than its lowest point from last week.
What is Zetachain?
A blockchain project called Zetachain seeks to address the interoperability issue that has plagued the cryptocurrency sector for many years. Over the years, the number of blockchain projects has increased dramatically. Some of the most well-known projects include Tron, Ethereum, Solana, Cardano, and Polygon.
Due to the fact that these networks were constructed with disparate designs, there are significant communication challenges between them. A layer-1 network called Zetachain aims to address this issue.
By guaranteeing that dApps developed within the ecosystem may interact with those developed by other layer-1 networks, it achieves this. It does this by making sure that all of its nodes sign off to all linked chains, watch events on external chains, and establish agreement. Moreover, Zetachain offers chain-agnostic message forwarding and omnichannel smart contracts.
As investors embrace Zetachain’s entry into the cryptocurrency space, its value has increased over the last few days. This is because, following months of development and testing, the developers finally opened the mainnet on February 1st. The creators also unveiled a 30-day loyalty programme, the inaugural XP campaign, in conjunction with this launch.
Following the developers’ acquisition of many bridge technologies to enable interoperability, the price of zetachain also surged. Izumi Finance, Owito Finance, and Eddy Protocol are a few of these networks.
As in the past, exchange listings—which are expected to begin this week—will be the next major drivers of ZETA pricing.
Potential dangers that lie ahead
The price of zetachain has increased since the mainnet went live. Nonetheless, the network is going to encounter a number of hazards that might affect its cost. First off, the layer-1 market is now saturated, with more recent networks like Sui, Sei, and Manta vying with more established ones like Ethereum, Solana, and BNB. Zetachain will therefore probably need to do something unique in order to increase its market share.
Another possible risk is that many chains go public, get some initial publicity, and then lose their appeal. Recently, a number of networks, like XDC Network, Siacoin, Casper, and Skale Network, have demonstrated this. Zetachain will thus have to put in a lot of effort to be relevant. Having a healthy ecology is the greatest way to do this.
