One thing we all like to do is speculate on the price of your favorite cryptocurrency. Today, we’ll have a look at 0x, an open protocol that’s enabling a peer-to-peer exchange of assets on the Ethereum blockchain. The project reaches back to the end of 2017, right before everything went nuts including the price of 0x. Today we’ll have a look at the future of the project, what does it hold and when can we expect a reversal in terms of price?
What is 0x (ZRX)?
One of the best explainer-videos in cryptocurrency-land was released this year on the 31st of July by 0x. It shows two people standing at two sides of a table with a giant man in the middle. ‘Hey, you have something that I want’ ‘And hey, you got something that I want, let’s exchange this’. In this example, one guy is holding a gold bar while the other one is holding a pack of dollar bills. The moment they decided to do the exchange, the man in the middle grabs their holdings, take a big bite out of it and hands it to the other. That’s where the solution that 0x has created comes in. ‘What if the table (That the middleman is standing on) could be a network instead of this middleman that’s cutting out a large portion of the fees?’ That would make it possible for anyone to exchange any asset with any other person across the globe, without any limits.
Where some of the other projects are nothing more but a protocol, 0x has focused on creating more than just the solution, they are actively creating products as well. Within these products, there are some options to choose from. There is the 0x Instant, which is an easy an accessible way to integrate the purchase of cryptocurrencies into your website, application or wherever you’d like to see it. It gives users the possibility to interact with MetaMask to buy cryptocurrencies on any other site with the help of the Asset Swapper service that’s offered by 0x. This makes it possible to exchange goods for other currencies. Another product offered by 0x is the 0x Launch Kit, which makes it possible for anyone to start an exchange or a marketplace in a matter of minutes.
One thing we should take into consideration is that 0x made it possible to clog the network thanks to providing the framework for the CryptoKitties back in the days. Ever since many other projects have emerged and this led to the 0x protocol being a core part of the Ethereum network. Some statistics to back this up;
Total transactions: 713,000+
Total volume: $750,000+
Total projects: 30+
0x (ZRX) Price Prediction 2018
With many other projects, 0x has experienced an incredible start of the year in 2018. When you take into consideration that their ICO ended in August 2017, months before the entire market cap was close to exceeding 1 trillion USD. They successfully raised 24 million dollars during the ICO for a token price of 0.04801 USD. In January, the 9th to be exact, the price hit 2,53 USD, that’s an increase of more than 50 times. That feeling must be incredible as an investor in the 0x ICO. With a start like this, many were, of course, calling for even more incredible returns, so let’s have a look at the sentiment back then.
A popular prediction that was released on Steemit called for a 1000% return on 0x in 2018 alone. This was after mentioning that people are looking for more decentralized alternatives to exchanges and 0x being one of these solutions. Moreover within the article, this person is referring to the project in the long-run. This call was not meant for 2018 alone, it was more for the upcoming years, yet he made it look like it was a short-term call that’d benefit the investors in the year 2018 alone. Compared to other projects, the price did remain pretty stable but eventually went down to 0.30 cents and eventually in 2019 went down to 0.22 cents where it’s at right now. Let’s move forward and have a look at next year.
0x (ZRX) Price Prediction 2020
In the upcoming year, we’ll see the expectations in the industry reach higher highs while the price might remain where it’s at. What is needed for another hype cycle like we had before is unclear, but in case it happens, it’s always the right idea to have some long-term bags ready. One of these could really just be 0x. The project has raised 24 million during the ICO, but assuming the fact they had managed to keep a big part of their tokens, they could’ve sold their shares for a 50x increase and suddenly increase the longevity of the company by many years. Now, even without this increase in wealth, the 24 million will get them quite far the upcoming years in terms of funding.
Their plans are open for anyone to look into as their project is completely open-source. Sources say that their V3 of the core product is close to launching which might cause some hype here and there and cause a slight increase in price. While we are currently sitting at around $0.22 cents, this price is set to increase to at least $0.50 cents, which would bring their market cap back to around 300-400 million, which is not highly unlikely for a project of this size.
0x (ZRX) Price Prediction 2021
When we look further in the future we have to start making some assumptions. Right now, we see some assets being tokenized but in a couple years this could be completely different. Whenever people are actively looking for solutions in terms of creating more decentralized alternatives for their assets, 0x could be one of them. With a wide range of possibilities, the project is set to perform in the right way in the long run.
One thing to do take into consideration are the current use-cases for the token. At this stage, the only real use-case for the token is holding it to earn your voting rights in the open-source development of the project. Whenever this remains the only utility, this could mean that it would take away the incentive of holding and purchasing the token. At this stage, the right to vote is pretty important to those holding the token, which can be seen in the diagram of token holders and the following statistic; “The top 100 holders collectively own 81.84% (818,422,470.31 Tokens) of ZRX”. This is, in fact, a good sign, meaning people actually hold value to holding the coin and most of these addresses are actually holding the token for a long time already. The total supply of ZRX tokens is 1 billion, with around 25% still in the hands of the team, this could go two ways. Either the team waits until their vesting stops and decides to sell their tokens, or they remain locked for an even longer time and it simply brings a smaller amount of tokens in circulation. Both ways, I believe a market cap of 1 Billion USD is reachable, bring the value of the token to 1 USD or even higher.
0x (ZRX) Price Prediction 2025
Predicting the future is a hard thing to do and especially when speculating on an asset that can be invested in. It could mean that by sharing these predictions, people make decisions and eventually end up either being sorry or extremely grateful. One thing anyone should always do is their own research to make the decision to invest your money into any asset, especially ‘young’ assets such as digital currencies. The only thing we can do is look at historical data to predict the future. We have done so in the following examples;
- If 0x has the average YoY growth that the Internet went through by amount of users (in its adoption phase 1995 / march 2017 = $1.01
- If 0x has the average YoY growth that Facebook went through (in its adoption phase 2004 / 2016) = $26.03
- If 0x has the average YoY growth that the Mobile Phone went through (in its adoption phase 1993 / 2013) = $0.9612
We can see here that 0x is set to increase in the upcoming years. The thing is, these indicators could have never predicted the sudden spike in prices or the sudden dumps in prices that we see on a daily basis within the cryptocurrency industry. It’s hard to tell this kind of moves. The most important decision you could make is whether you believe in the long-term future, the plans and the team for 0x. Everything is solid, except for the use cases for their ZRX token. The moment they manage to add additional features is the moment the demand will grow and thereby the price will increase.