One thing we all like to do is speculate on the price of your favorite cryptocurrency. Today, we’ll have a look at Wax, a purpose-built blockchain and protocol token designed to make e-commerce transactions faster, easier, and safer for all participants. Where other projects are aiming at revolutionizing the entire planet, Wax has a more sole focus on one industry. The project has been around for almost two years now showing quite similar signs in terms of price as other projects released at the beginning of 2018. Let’s dive into the project and see what the future tells.
What is Wax (WAXP)?
As described above, most of the well-known cryptocurrency projects out there are focusing on revolutionizing entire economies and thereby the entire world. Was is doing it in a slightly different manner, where they focus more on the e-commerce side of the spectrum in combination with their marketplace for virtual items. They aim at creating a secure and easy way of trading any physical or virtual item across the entire world. What this means is that they create the possibility of launching marketplaces, tokenizing physical assets and much more than that. Wax is built on top of EOS, one of the top-10 projects out there that have raised a couple billion to secure their development. EOS is currently the project with the most throughput in terms of transactions per second and capability, allowing WAX to utilize this to its full potential.
WAX is using a mechanism called the ‘Delegated Proof of Stake’ mechanism. It’s a mechanism that ensures the decentralization of the blockchain by dividing it across several so-called ‘guilds’. These are basically groups of people running nodes on top of the WAX network. Every 0.5 seconds there’s a block produced in the WAX Blockchain that’s either approved or denied by a guild. Whenever this does not happen, a gap exists within the blockchain that could cause problems. To ensure this does not happen, any guild should have an ‘uptime’ of at least 50% of the past transactions. This is done by the means of staking your WAX tokens. The rewards for the staking are based on the number of tokens you’re staking plus the quality of the voting. In a sense, this means that if you do not manage to approve or deny multiple blocks, you’ll receive fewer rewards.
WAX basically covers the whole shabam of what a cryptocurrency could involve within their Whitepaper with feeless transactions, staking possibilities, smart contracts and more than that. One thing that is impressive, is the list of projects that are being developed with the use of WAX technology. Sites for selling skins for CS:GO, multiple games and regular e-commerce sites that are suddenly super-protected against scams and whatnot. All of these developments are a showcase of knowledge and growth, yet the price remained stagnant over the past year. How can this change and what is there to come for WAX?
Wax (WAXP) Price Prediction 2018
When we look back at 2018, there’s not that much to see in terms of price that’s not surprising. WAX has completed its ICO back in November 2017 where they had sold their token for a price of 0.32 USD resulting in a total raise of 9.6 Million. Now only a couple days after, on December 2017, the all-time high of $5 dollars was reached. That would’ve brought many people smiles on their faces and secured the team a chance to lock-in some profits for the long run. Let’s hope they have done so because afterward price went down pretty rapidly. In fact, after April 2018, price has not been above the price of the ICO, which is pretty sad, to begin with. The question here is, were these tokens sold at a price that was too high or is the market simply performing against the WAX Token?
Anyhow, as the most projects that have experienced growth like this during their first days on the market, it allowed WAX to introduce themselves to the market and show everyone what they were worth. Meanwhile, they have kept developing and ever since and have realized some pretty impressive numbers.
- 6.8 Million WAX Accounts
- 300,000+ avg daily transactions
- 320,000 active users (90 days)
- 100M+ total items traded
- 50+ items created
- $50M total value traded
With these numbers, you’d expect a price that’d be much higher than where we’re at right now. Momentarily the price is at its lowest point that it has ever been. The returns for those who have invested in the ICO are quite dramatic. 0.08x in USD value, 0.23x in ETH value and 0.11x in BTC value. It’s safe to say the project took quite a beating, but what does this mean for the future?
Wax (WAXP) Price Prediction 2020
One thing that’s a good metric to watch the current state of a project is checking their Telegram channel and other socials. For WAX it’s positive to see the constant development. Their chat is filled with people who are truly dedicated to the project and have been for a while now. What this means is the core is strong, but where does the price go for this token? Over the past months, it has been going down organically, while the development has only been growing and growing. One thing that might be a factor is the fact that the company might be increasing the total supply by almost 50%, while being unclear whether this is, in fact, the case. With the introduction of a program that stimulates the first users of their platform a lot of new tokens will be generated, whom which could cause deflation. The reasoning behind this is pretty vague, but it does strengthen the core group of this project.
On the roadmap of WAX, there are some pretty big things as well. They are planning on releasing a public testnet, for developers to test out the waters before launching their projects on an actual blockchain. Besides that, the WAX Hive is being created which is basically a hub for developers to start off using the WAX Protocol for their applications. There is a lot of good stuff coming along, but how does this influence the price? When looking at the Technical Analysis for this project, there is not that much to say. It’s speculation at this point to where the price will start reacting to all the late developments. One thing that’s possible, once the market turns around, this is one of the projects that could pave the way on the mission towards the sky and beyond. Unfortunately for ICO investors, there is still a long way to go till the issuing price of this token. Nevertheless, that’s a big opportunity for those who get in at this stage with the price being extremely low.
Wax (WAXP) Price Prediction 2021
One thing that we could start seeing more and more in the future is video games playing a bigger role in society. We have seen the developments in the past few years with the emerge of E-sports. There are now stadiums filled with people watching their favorite gamers play their favorite games as if it were an actual sportsman. With the trend coming up and more and more people bring video games into the real world, vise versa could happen as well. With more people interested in these games, the emerging of the trading of those in-game items is not too far-fetched. When you think off it, there are already quite some in-game items that are being traded on a daily basis. This being one of the main focus points of the WAX ecosystem, it could spark up the aims towards the project. One concern could be the use of the protocol in comparison to the use cases of the token.
With more ‘guilds’ arising and more games starting to implement the protocol, they’ll start being more dependent on WAX. What this means, in reality, is that these projects reliant on the performance of the WAX Protocol, will want to have a fair share of what happens to it. It being a decentralized network, that’s possible. These projects will need a big chunk of WAXP tokens in order for them to start up their staking mechanism and earn voting power. By doing so, a lot of these tokens will then be locked up. Not by individuals, but by big companies that are reliant on the performance of the project. That’d mean that there’s less WAXP in circulation, thus the scarcity increasing. This would indicate the price moving towards the upward direction. When we look at the tokenomics though, it’s quite hard to see big growth here.
With close to 1 Billion tokens currently in circulation and the total supply being either 1.7 billion or the double of that, a lot of capital has to be injected before prices can start going up again. Whether we will see these all-time high prices of $5 again, that’s really hard to tell. One thing is for sure, if WAX manages to develop at this pace, there’s a lot of spectacular things coming our way.
Wax (WAXP) Price Prediction 2025
The moment we take a big jump ahead in time to the year 2025, the future will tell us what has happened. At this point, we can only speculate and use certain indicators that could foresee the future based on historical data. A couple of these mechanisms are the following;
- If WAX has the average YoY growth that the Internet went through by amount of users (in its adoption phase 1995 / march 2017 = $0.1250
- If WAX has the average YoY growth that Facebook went through (in its adoption phase 2004 / 2016) = $3.22
- If WAX has the average YoY growth that the Mobile Phone went through (in its adoption phase 1993 / 2013) = $0.1188
What we can see with these indicators is on both sides uplifting and depressing. Take in how the Mobile Phone has been growing and suddenly plays a big role in our modern life, same for the internet. Whenever this would happen to WAX and the growth of the project would follow the same pattern, the price will not even reach the ICO price again. Sad as it is, it’s the harsh reality that could just be true. When WAX would follow the same path as Facebook, there’s more optimism and the road towards the all-time-high is suddenly not that long anymore. We’ll keep a close eye on the project and see where the development is headed.