Elrond, a high-throughput, scalable, decentralized, and energy-efficient blockchain that leverages the Adaptive State Sharding, and a Secure Proof of Stake (SPoS) consensus algorithm has been silently rising through the ranks on CoinGecko, and currently sits at the 25th position with a reported market cap of more than $8.3 billion.
However, what’s remarkable is that Elrond’s native coin, EGLD, rose more than 100 percent in less than a month from $250 on October 28, to $545 on November 23. This performance was all the more impressive as the wider crypto market has been trading in a tight range with no exciting price action witnessed among the likes of Bitcoin (BTC), Ether (ETH), Polkadot (DOT), and others.
EGLD’s impressive price action begs the question, what are the catalysts behind EGLD’s upward trajectory and, more importantly, is Elrond the next blockchain after Solana (SOL) and Avalanche (AVAX) to go parabolic with rising adoption?
In this article, we will explore the aforementioned questions in detail. We will explore the Elrond ecosystem and learn what separates this low-latency, ultra-fast blockchain from its competition.
What Is Behind EGLD’s Price Surge?
According to the following chart from CoinGecko, we can see a violent upward move by EGLD from November 17 until November 23, with the coin’s pricing rising from close to $300 to almost $550.
Looking at the possible factors behind EGLD’s massive price surge, we can see a clear reason — the launch of more than a billion-dollar incentive program for Elrond’s native decentralized exchange (DEX) Maiar.
On November 19, Elrond announced a $1.29 billion dollars liquidity incentive program “to supercharge the launch of their Maiar DEX DeFi platform.”
Per sources close to the matter, the incentives of the program will be denominated in MEX, the utility and governance token of the Maiar DEX. Out of the total tokens, $282 million worth of MEX was released in the first month to be distributed to Maiar DEX users to enable them to provide liquidity in EGLD, MEX, and USDC tokens. The program commenced on November 19 which coincided with the launch of Maiar. Notably, the Elrond blockchain-powered DEX has already distributed tokens to over 60,000 accounts in the form of claimable MEX tokens to date.
Maiar is being positioned as a next-gen, high-throughput, low-latency DEX that is ready to onboard the next billion people into the DeFi space. All Maiar smart contracts have undergone rigorous and intensive auditing and formal verification by Runtime Verification. What’s more, Maiar has also been stress-tested under immense transaction loads to ensure the DEX delivers performance even under the harshest of circumstances.
The team at Maiar has also ensured that accessibility and ease of use are never a barrier to using the Maiar DEX and has, accordingly, released a highly intuitive Maiar App that allows novice crypto users to create a wallet in less than a minute by just using their phone number. The easy onboarding procedure, coupled with an intuitive UX positions Maiar as a force to reckon in the multi-billion-dollar DeFi landscape.
Commenting on the launch of Maiar and the $1.29 billion liquidity incentive program, Elrond CEO, Beniamin Mincu, said:
“By distributing Maiar DEX ownership to the next billion users, we lay the foundation for a truly global financial system that is accessible to everyone, everywhere.”
At the time of writing, Maiar has a TVL of more than $2.1 billion and a market cap of around $2 billion. Users holding EGLD, MEX, or USDC can also provide liquidity on Maiar and farm yields with APY ranging from 80 to 125 percent.
Unlike Ethereum, yield farming on Elrond is significantly cheaper thanks to Elrond’s low gas fees consumption and high throughput.
Can Elrond Go Parabolic?
The recent trend in the crypto market has been all about layer 1 blockchain tokens going parabolic shortly after launching their incentive programs. We saw this with Avalanche, Fantom, and now, to an extent, with Elrond.
However, the question lies, is there room for more upside potential in EGLD?
Indeed, the price of EGLD has already run up a lot since the launch of the liquidity incentive program and is now consolidating around $360, just above its 200 EMA. Potential entry points could be in the $300-330 range as it acted as a strong resistance area earlier in November before EGLD’s breakout.
As always, the ideal approach to entering a coin should be to dollar cost average into it and the story is no different in the case of EGLD.