With the emergence of Decentralized Finance (DeFi) through blockchain technologies, we saw most of the blockchain networks moving towards DeFi in the past few years. Among those blockchain networks is Elrond. We have created a guide around Elrond blockchain and a price prediction model around our research, even if you are new to blockchain.
Elrond uses sharding to provide incredibly fast transaction speeds. Its smart contracts execution infrastructure is capable of processing 15,000 transactions/second, with a 6-sec latency. In addition, Elrond has one of the lowest transaction costs at $0.001.
Note: This guide should only be considered educational content rather than investment advice. That being said, Let's jump right into the introduction to the Elrond network and its native token EGLD (eGold).
Elrond Overview
Beniamin and Lucian Mincu launched the Elrond blockchain network in 2017 with Lucian Todea. Elrond was created as a solution to the challenge of scalability.
Elrond has a total supply of 23,016,298 EGLD tokens used to pay as validation reward and network usage fee. 25% of the total supply of EGLD tokens was offered from June 26, 2019, to July 3, 2019, at an ICO price of $0.000650. Elrond's network mainnet went live in July 2020. EGLD token touched its all-time high at $542 on November 23, 2021.
What is Elrond (EGLD)?
Elrond explains itself in one sentence, "A highly scalable, fast and secure blockchain platform for distributed apps, enterprise use cases, and the new internet economy."
For example, Elrond is the first blockchain in the world to use real state sharding, which eliminates energy and computational power wear and tear through a Secure Proof of Stake (SPoS) consensus. It has a blockchain background and uses decentralized finance (DeFi) to get the best of both worlds. Transaction data is stored on separate blocks from other information on a single block, which makes it possible for transactions to move at an exponential rate. This helps us assess how much Elrond will cost in the future.
Elrond's network is built with a lot of thought put into security so that it can withstand things like the Sybil attack. Elrond has a lot of potential use cases and is poised to emerge as a very popular cryptocurrency. This is mostly because the native coin of Elrond, EGLD, has strong transaction security. And Elrond allows for permissionless, borderless global transactions.
In contrast to other blockchain protocols that need complex processors with a lot of computational capacity, Elrond may be run on standard PCs. According to its whitepaper, Elrond is the first network in which all three sharding components may be deployed concurrently in a single network architecture.
What can Elrond do?
If you think Etherum's 15 transactions per second and a hefty $50 transaction fee isn’t the best option for you -- Elrond can solve this problem with the processing capability of 15000 transactions per second with a much lower transaction fee.
How does Elrond Work?
Elrond is a high-throughput public blockchain that aims to go beyond the present state-of-the-art in terms of security, efficiency, scalability, and interoperability. Besides Secure Proof of Stake (SPoS) consensus, Elrond's other distinguishing characteristic is Adaptive State Sharding.
The following fundamental developments underpin Elrond's architecture:
Adaptive State Sharding at all levels: transactional, data, and network. The dynamically adaptive sharding technique will execute shard merging and shard splitting while taking into account the amount of validator nodes available, as well as network utilization.
Secure Proof of Stake (PoS) Consensus is achieved in just two communication steps by employing Boneh Lynn Shacham (BLS) modified multi-signatures among the consensus group's validators. Furthermore, nodes inside the shard are chosen at random for the consensus group, with no way of knowing the group's makeup more than one round in advance.
Due to repeated node reshuffling among shards, there is a high resistance against malicious attacks.
BLS signature secures the randomness source, making it non-biasable and unpredictable.
The Elrond WASM VM is a lightning-fast virtual machine for running smart contracts written in any WebAssembly programming language.
A high-throughput blockchain platform has to have this capability. Elrond can execute many SCs in parallel by balancing smart contracts across shards, while cross-shard calls are handled via an asynchronous cross-shard execution mechanism.
Cross-shard transactions reach a quick conclusion in a matter of seconds. A high throughput blockchain system requires a very high TPS, but TPS is only half the picture: rapid finality for cross-shard transactions is critical. Most present state-of-the-art blockchain topologies fail to acknowledge this element, yet it is critical from the user's perspective. Elrond naturally handles fast cross-shard finality at the protocol level, employing a dispatching mechanism and a routing protocol.
EGLD Token
While the Elrond Network serves as a framework for the implementation of smart contracts, decentralized apps (dApps), and even whole blockchain protocols, it is Elrond's native eGold (EGLD) token that allows the network to function.
The EGLD currency serves several purposes on Elrond. It is employed as part of the platform governance system, for staking and validator compensation and for transaction and smart contract payment. Platform users and developers alike pay for Elrond Network access with the EGLD token, which acts as the ecosystem's fuel. The EGLD currency is intended for use with Elrond's Maiar Wallet, which allows users to transmit near-instant transactions across the Elrond Network. In addition to staking, Maiar provides borrowing, lending, sending, and receiving functionalities.
EGLD coins serve as catalysts for building smart contracts and transaction processing. The most significant elements driving Elrond's pricing are its speed and affordability, which allow for rapid adoption of innovations, leading to speedier and more secure transactions.
Elrond Whale Wallets
If you check etherscan.io, you'll see that there are a total of 118 token holders at this time. The top ten wallets contain most of the supply of EGLD tokens, with the top wallet having 46.64% of the tokens.
Elrond doesn't run on Ethereum. Rather, it has its own network.
Elrond (EGLD) Price History & Technical Analysis
Elrond originally issued an ERC-20 and BEP-2 token, ERD, in November 2019, but it did not issue its own mainnet token until September 2020, when the Elrond blockchain was released. The new Elrond token (EGLD) went live on September 5 at a price of $17.20. EGLD varied around the initial launch price over the next three months.
The Elrond cryptocurrency began a positive trend before the end of 2020, which lasted for the next few months. Elrond introduced its own digital wallet and payment platform named Maiar on December 4, another name inspired by JRR Tolkien's writings. Elrond stated that Maiar would provide customers with financial services such as payments, investments, and passive income.
Maiar is distinct from other crypto wallets in that it does not require a complicated password. Instead, the blockchain generates a wallet address from a phone number. If a user misplaces their phone, a recovery phrase can be used to retrieve the lost cash. Other security mechanisms, such as a pin and biometric identification, can also be added by users.
Maiar was one of the first apps built on the Elrond blockchain, and it was a big hit with investors. By the end of December, EGLD had risen past the $20 barrier and was on its way to $63.55 on January 31, 2021, the launch date of the Maiar app. EGLD's price did not stop there; it more than doubled in the first nine days of February, culminating at $196.02.
After February 9, EGLD began to correct to $140, where it remained until the end of March. Elrond, on the other hand, announced the same month that its Maiar platform would soon support bitcoin, which piqued the interest of investors.
EGLD began to rise again in early April, aided by protocol improvements and new real-world applications. On April 6, a new agreement with Shopping.io was announced, allowing American consumers to pay for items using EGLD. After five days, the price had risen to $239.
After the top, things didn't seem so good for EGLD. Over the next five months, the price fell precipitously. It plummeted below $100 in May and hit its lowest point in the negative trend on June 22 at $59.
The Elrond cryptocurrency passed $200 in September, resuming its upward trend. EGLD saw an early surge on September 14, when it was listed on the KuCoin market. This was only a taste of what was to come.
EGLD was exceptionally bullish in the months that followed, reaching an all-time high of $542.58 on November 23. This followed Elrond's announcement of an incentive program for using its Maiar decentralized exchange (DEX). Users of the DEX who supply liquidity in EGLD, USDC, and MEX, the Maiar Exchange token, received $1.29 billion. Elrond's price has dropped since the exchange event, although it is still significantly more than its debut price.
What Expert Analysts say about Elrond:
Let's look at what experts in the crypto community say about the future of Elrond.
According to CryptoNewz, "Elrond, backed by powerful smart contracts, is poised to solidify its position as a significant draw for its investment community. The road ahead is full of blossoms if investor confidence continues to rise, culminating in a major push to the EGLD price, pushing it over all obstacles, and reaching $300 by the end of 2022. If they maintain their pace and gain a substantial market cap, their endeavors concentrating on education, outreach, and innovation might propel them to a major level of $460 by the end of 2025."
According to Walletinvestors, "If you are looking for virtual currencies with good return, EGLD can be a profitable investment option. Elrond price equal to 147.091 USD at 2022-01-30. If you buy Elrond for 100 dollars today, you will get a total of 0.680 EGLD. Based on our forecasts, a long-term increase is expected. The price prediction for 2027-01-23 is 1183.840 US Dollars. With a 5-year investment, the revenue is expected to be around +704.84%. Your current $100 investment may be up to $804.84 in 2027."
According to GOVCapital, "Elrond has been showing a rising tendency, so we believe that similar market segments were very popular in the given time frame. The future price of EGLD is predicted at $927.01217812725 (549.974% ) after a year, according to our prediction system. This means that if you invested $100 now, your current investment may be worth $649.974 in 2023 January."
According to crowdwisdom, "As per the Price Prediction, in 2030, the EGLD price is expected to go above an average price level of $6,030.88, the expected minimum price value of Elrond by the end of the current year should be $5,859.96. Moreover, EGLD can reach a maximum price level of $7,038.27."
According to PricePrediction, "According to our deep technical analysis on past price data of EGLD, In 2022, the price of Elrond is predicted to reach at a minimum level of $212.26. The EGLD price can reach a maximum level of $252.35 with the average trading price of $219.83. Elrond's price is forecast to reach the lowest possible level of $882.95 in 2026. As per our findings, the EGLD price could reach a maximum possible level of $1,106.01 with the average forecast price of $915.39."
Elrond Projects & Partnerships:
Here are some considerable projects and partnerships led by Elrond network since inception:
(Jan 11, 2022) Utrust: The Elrond Network has announced a new cooperation with Utrust, a payments start-up located in Portugal, to address the future of Web3 technology. According to a joint press statement released by the two firms, Elrond and Utrust have formed a "union" rather than a "partnership." According to the press release, both firms will join staff and products in order to collaborate on pushing crypto payments. Utrust stated that the merger furthered their purpose and mission to "serve everyone" by bypassing traditional institutions' gatekeepers and allowing individuals to handle their financial life."
(Sep 8, 20) DIA: "Elrond and DIA collaborate to provide off-chain and cross-chain data and information for DeFi products and smart contracts via DIA oracles, as well as to make Elrond blockchain data available to DIA users. DIA will send existing data sets to Elrond smart contracts via the two-way interface. Elrond smart contract status, tokens, and transactions will also be available through DIA for integration in non-native Elrond prediction markets and other use cases. Using a bounty-based mechanism, this additional data may be made available upon request."
(Oct 21, 21) Binance: "Binance and Elrond have reached a deal under which the Binance-backed BUSD stable currency will be accessible on the Elrond Network. Because of Elrond's high throughput processing capacity, the collaboration between the premier supplier of services in the crypto industry and the first blockchain with a functional state sharded design would enable rapid and affordable stablecoin transactions."
(Feb 12, 2019) DSLR: "The Distributed Systems Research Laboratory (DSRL), which is part of the Technical University of Cluj-Department Napoca's of Computer Science, has extensive experience in many fields of distributed systems research, including energy efficiency in large scale distributed systems, machine learning, big data analytics, IoT and blockchain technology, ambient assisted living, and multidisciplinary optimization. The DSRL laboratory is actively participating in EU-funded research and innovation initiatives, has an established collaboration network that includes a significant number of institutions and businesses, and has published over 100 articles in international conferences and high-impact journals."
(Aug 20, 2019) Matic: "Elrond aims to share some of its foundational research with Matic, such as network security optimization and randomness creation in safe Proof-of-Stake consensus algorithms. Matic also plans to help Elrond's ecosystem by looking at integration to increase its scalability. Matic Network is particularly interested in Elrond's Random Block Producer selection technique, and the two teams will collaborate on future research in this area. In addition, to further this aim, Elrond and Matic Network will collaborate on research and development of some of the most severe blockchain restrictions, such as scalability and efficiency."
(July 18, 2019) Chainlink: "Elrond intends to integrate Chainlink to increase the usability and functionality of its smart contracts by allowing them to safely connect with real-world data flows. We hope to take smart contracts to the next level by offering developers more flexible and sophisticated tools to build on, transforming them into the de facto option of digital contracts."
Elrond Inflationary / Deflationary analysis
Elrond's economic model will be transformed with the implementation of deflation for its native coin. Elrond launched with a supply cap of 31,415,926 tokens. The circulating supply tends to approach through a progressively falling inflation rate that offers staking benefits for the first 10 years of the project. Fees, on the other hand, are used to give staking rewards, and as the quantity of fees climbs, inflation reduces, eventually reaching zero if the amount of fees created surpasses the minimum promised rewards. This lays the groundwork for a switch to a deflationary monetary system.
Elrond Price Prediction 2022-2026
Considering the technical developments and advances the development team has planned, Elrond's price could reach $1200 by the end of 2026. Of course, it depends on the market conditions.
Elrond Price Prediction: 2022
Elrond might reach or cross its all-time high and be at $600 before 2022 ends. Largely because of the network's growth and ever-growing partnerships and community.
Elrond Price Prediction 2023
There’s no denying the fact that Web3 will change the world dramatically. In this regard, after a correction towards $400, Elrond is expected to reach $800 in 2023.
Elrond Price Prediction 2024
With the market cycles in place, if Elrond makes a high at $800 in 2023, we expect the market will come back for a correction towards $550 in 2024, before the further rally.
Elrond Price Prediction 2025
We expect Elrond's price to reach a maximum of $1000 during 2025.
Elrond (EGLD): Conclusion Price Prediction
The blockchain's competitive advantage is due to Elrond's unique protocol and sharding technology. Keep in mind that analysts and algorithm-based forecasts might be inaccurate when it comes to Elrond coin price predictions. Although the price forecasts fluctuate, there appears to be agreement that Elrond has significant growth potential. Their EGLD forecasts are based on fundamental and technical analysis of a cryptocurrency's historical performance. Past outcomes are not a guarantee of future results. It is critical to conduct research and to keep in mind that your decision to trade is influenced by your risk tolerance, market expertise, the spread of your investment portfolio -- and how comfortable you are with losing money. Never invest money that you can't afford to lose.
FAQs
Is Elrond a good investment?
Because of its high transaction throughput and cooperation with other protocols, Elrond's fundamentals suggest that it has the potential to be a big crypto project. However, cryptocurrencies are inherently dangerous due to their volatile nature, and the direction of any business may change overnight. Therefore, it's of critical importance to do your own research before investing.
In comparison to other cryptocurrencies, how can Elrond secure privacy?
Elrond prioritizes the security of the Elrond blockchain and its associated key components. The Proof of Stake network is protected by large quantities of eGold and offers important services for both commercial and personal usage.
Is it possible to generate profits with Elrond?
Elrond has a lot of promise and is one of the most appealing cryptocurrencies, owing to its native coin, EGLD, which assures strong transaction security. The Elrond platform is designed for the betterment of the internet economy, which includes decentralized apps (dApps) and industrial applications. Elrond, like all other cryptocurrencies, is a hazardous investment, but by understanding its mechanism and the team behind its technology, you may build an investment thesis based on your research and earn profit.
Is Elrond better than Ethereum?
During massive stress testing, the Elrond network delivered an unrivaled result of 263 thousand transactions per second. This is ten times faster than the worldwide payment system Visa, which can handle up to 25,000 transactions per second. The contrast with Ethereum is even more striking: Ethereum has a transaction rate restriction of 20 transactions per second.
Why should I use cryptocurrency instead of fiat money?
Unlike conventional money, cryptocurrencies are not regulated nor supported by governments. In addition, cryptocurrency is far more volatile than fiat money. Invest and use cautiously, as the value of digital assets can change quickly.
