With the world rapidly tokenizing assets, developers need a protocol that’s safe, secure, and easy to use. 0x (ZRX) is an open-source protocol built on the Ethereum blockchain that provides users with a platform on which they can interact with robust smart contracts, develop their projects securely, and transact value safely. 

Millions of dollars in assets are exchanged each day in many forms, such as stocks, gold, real estate, video game items, art, and collectibles. When these transactions occur on the blockchain they need to use a protocol like 0X to safely manage them without using a middleman or a third party to mediate. This means that people who want to safely trade valuable assets on the blockchain need to own 0X – but what determines the value of the 0x token?

If you’ve ever wondered this, then you’re in the right place. We’ve compiled everything you need in order to get a better understanding of the intricacies of 0x’s price – and the factors that influence it.

0x Price History

Founded in 2016 by Will Warren and Amir Bandeali, 0x uses common smart contracts to ensure a standardized delivery of service. Described as “Craigslist for Cryptocurrencies” by its founders, 0x uses the structure of its network to make transactions offline by using off-chain order relays. This allows for much faster transactions that can finalize before on-chain settlement. The price of 0x has thus risen and fallen due to its utility in the markets and according to market trends and user demand over the years.

The 0x team raised $24 Million in an Initial Coin Offering. The project’s token sale took place between August 15th and 16th in 2017. The 0x team raised $24 million dollars worth of Ethereum from a group of over 12,000 backers.

The project was supported by investments from several prominent crypto venture capitalist firms such as Pantera Capital, Polychain Capital, Blockchain Capital, as well as Chinese investment firms Jen Advisors and FBG Capital. These firms received discounted token allotments for their contributions during the sale. 

Analyzing 0x Price History

0x’s price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves looking at the charts to make sense of previous price movements. With 0x, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges.

Fundamental analysis, on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. The team behind 0x is public, but there are several additional fundamentals that have affected its price. These include the economics of the token – the fact that 0x has a fixed supply is of particular importance, as this makes it a scarce asset and potential hedge against fiat inflation. Things such as new governmental regulations and companies accepting 0x are also considered important fundamental events that can impact price.

The overall price trend of 0x tends to follow a boom-and-bust cycle, where a period of growing excitement and adoption leads to a surge in price before doubt and disillusionment result in a crash. 0x also shows additional momentum whenever it has a large increase in users due to its utility. 

Factors Influencing The Price of 0x (ZRX)

A myriad of different factors affects the price of 0x. As mentioned before, 0x has a fixed total supply so is not subject to inflation like fiat currencies. This means that it is likely to be a better long-term store of value than, say, USD. 

The price of 0x also sometimes moves with or in response to changes in the wider economy, with users seeing large and volatile shifts in 0x’s valuation due to market sentiment. This can be seen after the bullrun of 2017 and the price action prior to 2021. 0x has also received speculative criticism that the team is lacking a keystream of revenue by keeping the protocol free to use. 

Project developments and news are further drivers of price. For 0x, project developments include market adjustments and updates to the protocol. Meanwhile, the news that affects 0x often concerns product utility and regulations – when governments and large merchants accept 0x it can have a positive impact on the price while banning it can have the opposite effect.

Adoption by investors is another clear contributor to 0x’s value, as the more demand there is for 0x, the higher its price will rise in turn. Users need to own at least 100 ZRX to stake, if there are a large number of users that want to participate this will reduce the available supply. Users will also receive staking rewards each Epoch (7 days), which may cause selling pressure and lower the price.

In 2020 and 2021 there have been many headlines about companies such as MicroStrategy, Square, and Tesla making large cryptocurrency purchases. In addition to lowering the supply available on the open market, institutional 0x investment could inspire confidence in the cryptocurrency and encourage more retail investment – which is still an important driver of 0x’s price.

Live 0x Value and Market Cap

The live price of 0x varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given 0x’s volatility, its live price can change by a large amount in a very short space of time. The market cap of 0x is equal to the price of 0x multiplied by the number of 0x in circulation.

0x Price FAQ

How is the price of 0x calculated?

0x’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying Bitcoin than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of 0x different on different cryptocurrency exchanges?

0x’s price is based purely on trading as there is no standard global 0x price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

How does staking work?

To stake natively, a user must hold at least 100 ZRX. Staking pools provide an alternative for those not meeting that requirement. In a staking pool, each token holder that has staked is eligible for a reward-based proportionally on their share of ZRX staked.

When will the max supply be reached?

No new ZRX is being issued. There is a 5- year vesting schedule for the team that runs out in Aug 2022. Current vested amounts can be reviewed on Etherscan. 

What will 0x be worth in the future?

The 0x price may be affected by a myriad of changes in the future, including new regulations, the rate of adoption by retail, the sentiment of institutional investors, and the rollout of scalability solutions or other updates.

Analysts’ future price predictions vary wildly depending on the source and the sentiment or investment of the author. Several models and tools are used by traders and firms to predict the price of 0x and other cryptocurrencies, such as stochastic oscillators, moving averages, and more complex strategies like the Stock-to-Flow model or Golden Cross. 

Conclusion

ZRX is an aged coin with a rich history, surviving the bear market and internal conflicts such as the HYDRO fork and a contract vulnerability in July 2019. Nevertheless, ZRX has remained strong, compliant, and useful for cryptocurrency users and continues to transact millions of dollars in value. 

A lot of different factors have had an impact on 0x’s trading history, including forks, halving events, the addition of staking, the world economy, and adoption by retail and institutional investors. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of 0x and cryptocurrencies!