- Zilliqa crypto price has been in a consolidation phase in the past few weeks.
- It remains about 25% below the year-to-date high while BTC jumped to June highs.
- Zilliqa's DeFi total value locked in DeFi has dipped to about $5 million.
Zilliqa price has been left behind in the ongoing crypto recovery amid thin trading volumes and weak on-chain activity. ZIL was trading at $0.027 on Thursday, where it has been in the past few days. This price is about 25% below the highest level this year. On the other hand, Bitcoin is hovering near its highest level since June last year.
Disappointing on-chain metrics
Zilliqa, like several smart contract platforms like IOTA and EOS, has seen the level of interaction in the ecosystem remain under pressure in the past few weeks. This underperformance happened in a period when cryptocurrencies have staged a strong recovery, with their combined market cap hitting over $1.2 trillion.
According to DeFi Llama, the total value locked (TVL) in Zilliqa's DeFi ecosystem has dropped to Z185 million, which is the lowest level in months. At its peak, the network had a TVL of over 1.4 billion ZIL. In dollar terms, Zilliqa has a TVL of $5 million. This makes it much smaller than other smaller ecosystems like Mixin, Kava, and Osmosis.
Read more: How to buy Zilliqa.
Additional statistics listed on its website are not encouraging either. For example, the number of total ZIL addresses has dropped to about 4.5 million. On Thursday, there were just 208 new addresses compared with 1,551 on March 17. I believe that a highly active network should demonstrate faster address growth.
Meanwhile, the number of daily transactions has fallen to 17.3 million while the number of nodes has fallen to 2,400. These numbers are not encouraging for Zilliqa, one of the pioneer smart contract platforms.
A key challenge for Zilliqa is that the number of platforms in the industry has been growing rapidly in the past few months. They include well-known layer 1 and layer 2 networks like Ethereum, Arbitrum, and Cardano. And new ones are coming up, including Coinbase's Mantle, which will use Optimism's infrastructure.
Zilliqa price prediction
The daily chart shows that the recent ZIL price recovery found a strong resistance at $0.03. It was attempting to move from this month's low of $0.02. Zilliqa has moved to the 50-period and 25-period exponential moving average (EMA) while the MACD has dropped below the neutral point.
Therefore, there is a possibility that Zilliqa will remain under pressure in the coming days as investors focus on more liquid cryptocurrencies like ETH and XRP. The next key level to watch will be at $0.02, which is about 30% below the current level.
Contributors
