Zilliqa is a fast and secure blockchain platform that leverages sharding technology to achieve high scalability. The project also employs an eco-friendly consensus mechanism to reduce its ecological footprint. The platform provides an environment for developers and enterprises to build decentralized applications and aims to transform digital infrastructure for industries around the world. So far, more than 60 projects from over 20 countries have joined the Zilliqa ecosystem to create dApps, toolkits, wallets, explorers, and more.

ZIL is the native utility token of the platform and is used to pay for transactions and smart contract execution. Its price has changed significantly during its history and if you want to know why then you’re in the right place. We’ve compiled everything you need to know in order to get a better understanding of ZIL price – as well as the factors which influence it.

Zilliqa Price History

[guidelink ZIL] first hit the market towards the end of January 2018, trading at $0.14. Prices fell at first and dipped as low as $0.03 in March. A month-long surge in the second quarter, during which the Zilliqa market cap surpassed $1 billion, then carried ZIL up to over $0.23, but the rest of the year was spent in decline. By the end of 2018, ZIL was worth $0.02, meaning it had decreased by 86% since the token’s launch.

After improving slightly to $0.025 in early January, prices fell to $0.015 in March. Two more attempts to rally took ZIL as high as $0.028 in April and June. The rest of the year displayed a more bearish trajectory, and as 2019 came to a close, ZIL was trading at $0.0045, representing a loss of 77% over the course of 2019.

ZIL reached half a cent in January 2020 and rose to $0.01 in February. Less than a month later, however, prices hit a low of $0.002 after a crash of more than 45% on a single day in March. This was followed by two months of steady gains and a further month of sharper growth until ZIL reached $0.03. The next five months were volatile as price oscillated between about $0.013 and $0.029. ZIL began to rally in November though and was worth more than $0.08 by the end of the year, providing returns of almost 1,800% since the start of 2020.

ZIL consolidated throughout January 2021 and pulled back to $0.05. In February, ZIL price passed $0.10 and the Zilliqa market cap passed $1 billion again. March was also bullish and ZIL reached $0.25 in April. There was a more than 50% pullback later that month as prices dipped below $0.12. Another burst of positive momentum then saw ZIL reach its all-time high of $0.26 in May. By that point, ZIL had provided year-to-date gains of 216% and the Zilliqa market cap was more than $2.6 billion. Prices swiftly fell after that and ZIL dipped below $0.07 later in the month, a few days after crashing more than 50% during a single day. Prices rebounded to $0.16 in early June but declined again to $0.06 later in the month.

Analyzing Zilliqa Price History

Zilliqa price history can be analyzed with many of the same techniques as the stock market. Technical analysis involves using various indicators while studying price charts in order to make sense of previous price movements. With ZIL, 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. Zilliqa raised $22 million through its initial coin offering and the project team comprises engineers, PhD computer scientists, and industry experts. The technology already has many use cases, with dApps currently live on the mainnet including Unstoppable Domains and Krypton, while Zilliqa collaborators include Elliptic and the Singapore Blockchain Association. These could be good signs for the fundamental Zilliqa value.

Broader market trends have also played a role in ZIL’s price history. Its surge in 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

ZIL’s huge single-day drop in March 2020 came as economies and borders were closing down around the world in response to the COVID-19 pandemic. The effect of this was felt by the whole cryptocurrency sector and the entire stock market, which experienced the biggest single-day crash since 1987.

The sudden crash in May 2021 was also market-wide, affecting every single major cryptocurrency. Various contributing factors have been suggested, including comments made by Elon Musk, a crackdown by Chinese authorities, liquidations, and a healthy market correction.

The overall price trend of ZIL tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Zilliqa (ZIL)

A variety of different things can affect the price of ZIL, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency and global economies.

ZIL has a capped max supply of 21 billion ZIL, making it a scarce asset, like Bitcoin, and so potentially a good store of value in the long term. New tokens are released according to a gradually decreasing emission schedule until the max supply is reached approximately 10 years after the token’s launch. At that point, no new tokens will be created, so any rise in demand will lead to a rise in price.

Demand for ZIL is partly driven by staking. ZIL holders can stake their tokens with seed node operators in order to earn annual returns of 6% or more. Stakers can also earn gZIL, which is the governance token of the Zilliqa network, enabling holders to vote on community and partner projects. These rewards could incentivize more people to buy ZIL for staking.

ZIL is also used to pay for transactions and executing smart contracts on the Zilliqa blockchain, creating further demand from developers and dApp users. This demand will likely grow as the Zilliqa network expands. This means that activities which drive Zilliqa adoption, such as community engagement and improvements like the transition to Zilliqa 2.0, could potentially lead to a rise in ZIL price.

Live Zilliqa Value and Market Cap

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

Given ZIL’s volatility, its current price can change by a large amount in a very short space of time. The market cap of Zilliqa is equal to the price of ZIL multiplied by the number of ZIL in the circulating supply.

Zilliqa Price FAQ

How is the price of ZIL calculated?

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

Why is the price of ZIL different on each crypto exchange?

ZIL’s price is based purely on trading as there is no standard global Zilliqa 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.

What will ZIL be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of ZIL. However, if the Zilliqa 2.0 upgrade drives greater adoption of the Zilliqa network, it could lead to a price rise.

Conclusion

Since joining the crypto market, the price of ZIL has experienced significant change, going from lows of $0.002 to highs of $0.26. Its price movements have rarely been smooth, however, as ZIL’s volatility has led to plenty of surges and crashes along the way.

Many different factors have played a role in determining the price of ZIL, including demand for staking rewards, the number of developers and users on the Zilliqa network, and trends in the rest of the cryptocurrency market and wider economy. 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 Zilliqa and cryptocurrencies!