The 0x (ZRX) cryptocurrency has struggled since the start of the year, falling by 18% year-to-date after a brief rise in early January. But the price has been trending higher in the past two weeks, soaring by 46% since 24 January.
0x aims to provide an infrastructure for the emerging crypto economy to let users trade ERC-20 tokens and other assets on the Ethereum blockchain without using traditional cryptocurrency exchanges.
Its smart contract technology offers a base for decentralised finance (DeFi) to manage a new breed of financial services such as loans, savings, insurance, trading and so on, using cryptocurrencies as collateral.
The ZRX token price has come under pressure as the major cryptocurrencies such as bitcoin and ether have been unable to stage a recovery from their selloff in late 2021. Does the uptick in the ZRX price present an opportunity to add it to your investment portfolio?
This article addresses the question: what is the 0x cryptocurrency? It also provides an overview of the latest ZRX crypto news and takes a look at 0x price predictions to help you make a decision. What is ZRX and what is its value for the industry?
Introduced in 2017, the ZRX cryptocurrency coin is a digital token that runs on the Ethereum blockchain and powers the open-source 0x protocol. The protocol allows different decentralised exchanges to interoperate, connecting liquidity providers. According to 0x Labs – the organisation behind the protocol – it has powered the infrastructure for dozens of DeFi applications so far and enabled more than $120bn in trading volume among over 2.3 million traders.
The token was initially used to vote on protocol updates and pay trading fees for transfers using the protocol, then in 2019 the version 3 update to the project added staking capability for liquidity providers to receive tokens as a reward. The network has so far paid more than $1m in fees to ZRX holders and market makers.
There were 847.5 million ZRX tokens in circulation on 7 February, representing 85% of the maximum 1 billion supply, according to CoinMarketCap . ZRX had a market capitalisation of $572.63m, making it the 126th largest cryptocurrency by value.
The project expanded its focus in 2020 to build on top of the protocol vertically to encourage adoption and drive growth in several ways. It launched the DeFi-native Periscope trading desk, which uses the 0x Protocol to increase liquidity and price competitiveness. The 0x aggregation API allows developers to create exchange functionality for DeFi applications and crypto wallets, including the 0x Labs Matcha consumer product, which identifies the best prices across exchange networks. Matcha facilitated more than $2.8bn in trades in six months. Version 4 of the 0x protocol was also introduced last year with a new modular architecture to expand the ways developers can work.
In August, 0x became a founding partner of global payments infrastructure firm Celo’s DeFi for the People initiative, which aims to bring DeFi to the 6 billion smartphone users worldwide. Ox announced it was live on the Celo network on 18 November and on 3 December 0x announced :
“In addition to recently launching Celo support on 0x API, we’ve expanded our partnership to allocate $4.5m in joint funding to the community-owned 0x DAO. The funding, consisting of $3m in CELO and $1.5m in ZRX, will be used to bring 6 billion new users onto 0x-powered applications running on the Celo blockchain.”
On 31 January, 0x revealed plans to introduce multi-chain swaps for non-fungible tokens (NFTs) powered by the version 4 protocol on all 0x-integrated blockchains. The upgrade will provide efficient use of gas (processing fees) to make it more affordable to swap NFTs on Ethereum and six other Ethereum Virtual Machine (EVM) blockchains and Layer 2 networks. Layer 2 networks run on top of blockchains to provide enhanced features like scalability and interoperability.
The initial deployment will be on the Ethereum blockchain, with Binance Smart Chain (BSC), Polygon, Fantom, Avalanche, Celo and Optimism to follow. Will Warren, co-founder and co-CEO of 0x Labs said:
“Our motivation in bringing NFT support to 0x Protocol v4 is to provide an open technical standard for NFT markets that is technically robust, non-extractive, and consistent across EVM blockchains. Since blockchains have limited throughput, NFT communities will be forced to spread out across many distinct networks. 0x Protocol v4 will serve as public exchange infrastructure and bring uniformity and feature parity to NFT markets across all EVM blockchains.” How have these developments affected the ZRX/USD price?
The ZRX price chart shows that the token launched at $0.11 in […]
Protected by Patchstack