Elrond describes itself as an internet-scale blockchain for decentralized applications, enterprise use cases, and the new internet economy. Its use of transaction sharding delivers a 1000 times improvement in throughput while its Secure Proof of Stake consensus approach provides efficiency and security. The project also supplies flexible tools and supports a range of popular programming languages for fast testing and deployment of dApps.

The Elrond eGold token, or EGLD, is the project’s native token which fuels the Elrond Network. It is used for transactions, smart contracts, governance, staking, and validator rewards. Since joining the crypto market, EGLD’s price has changed significantly, and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of EGLD price – as well as the factors which influence it.

Elrond Price History

[guidelink EGLD] initially issued ERD tokens on Binance Smart Chain and later swapped some for ERC-20 ERD tokens. Following the Elrond mainnet launch in 2020, a new economic model was created and ERD tokens were swapped for the new EGLD tokens at a rate of 1,000 ERD for 1 EGLD.

After the token swap, EGLD hit the market in September 2020 trading at about $20. Most of that month was spent in decline and by the start of October, EGLD was worth about $10. Prices continued to fall for the first week of October until EGLD hit a low of $6.45.

The next three weeks saw sideways price movement before EGLD began to rally at the end of November. This continued for most of December when prices reached a high of $30.72. EGLD pulled back the following week and as 2020 came to a close, the cryptocurrency was trading at $24.66.

Prices surged to almost $45 in the first week of January 2021 and then consolidated around that level for the next couple of weeks. The bullish momentum resumed at the end of the month and saw the Elrond market cap surpass $1 billion for the first time.

The growth was much steeper in early February as EGLD shot up to a peak of more than $236. A 60% retracement then saw prices briefly dip below $90 and remain under $175 for the rest of February and March.

Another rally in the first half of April culminated in a peak at EGLD’s all-time high of $251.26 on April 12. By this point, EGLD had provided year-to-date gains of nearly 920% and the Elrond market cap had surpassed $4 billion.

Prices had halved by a few days later. A rebound then took EGLD back above $200 in early May but the rest of the month was more bearish. Prices touched lows of under $66 during a crash of more than 50% on a single day in May. After regaining $128 towards the end of the month, EGLD spent most of June in decline. It reached a low of about $52, before recovering to above $80 at the end of the month.

Analyzing Elrond Price History

EGLD 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 EGLD, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of traders 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. Elrond raised $1.9 million in private funding from backers including Binance Labs and NGC. Its founders were also responsible for founding MetaChain Capital, ICO Market Data, and Soft32, and are supported by a team with technical experience from Google, Microsoft, and Intel. These could be good signs for the fundamental Elrond value.

Broader market trends have also played a role in the price history of EGLD. Its surge early 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.

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 Elrond price trend 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 Elrond (EGLD)

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

EGLD was launched with an initial supply of 20 million tokens. The cryptocurrency is subject to a gradually decreasing inflation rate to cover staking rewards for the first 10 years until it reaches its max supply of 31,415,926 tokens. This makes EGLD a scarce asset, like Bitcoin, and so potentially a good store of value in the long term. However, transaction fees replace inflation as staking rewards, meaning the theoretical supply cap actually decreases with Elrond adoption.

Demand for EGLD is partly driven by staking. EGLD holders can run a validator node or delegate their tokens to a validator. As of June 2021, the yearly return for validators is 21.45%, while for delegators, it is estimated to be 15-19%. This opportunity for passive income could incentivize more people to buy EGLD for staking.

Governance rights are another benefit of holding EGLD. Meanwhile, the token is required to pay fees for transactions, smart contracts, and storage. This creates EGLD demand from developers building on Elrond and the users of apps on the network.

Thus, there will likely be greater demand for EGLD as the Elrond Network expands to incorporate more developers, dApps, and users. Events that drive Elrond adoption, such as project upgrades, the release of new features, and community engagement, could therefore boost the Elrond price.

Live Elrond Value and Market Cap

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

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

Elrond Price FAQ

How is the price of EGLD calculated?

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

Why is the price of EGLD different on each cryptocurrency exchange?

EGLD’s price is based purely on trading as there is no standard global Elrond 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 EGLD 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 EGLD value. However, as EGLD is required for transaction and smart contract fees, growth in the number of users and developers on the Elrond Network in the future could lead to a rise in EGLD price.

Conclusion

The price of EGLD has seen significant change since it emerged following the 2020 token swap. In that time, its price has gone from lows of under $6.50 to highs of more than $250. However, the journey hasn’t been smooth as EGLD’s volatility has led to surges and crashes along the way.

Many different factors have played a role in determining the price of EGLD, including demand from validators and delegators, the number of developers and users on the 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.

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