As cryptocurrencies have introduced a new concept of decentralized digital money, many projects appeared aspiring to become a means of exchange. One of the radically new blockchain projects that aim to go public and make its native token enterprise-grade digital money is Chia Network. With its unique Proof of Space and Time consensus protocol and environment-friendly approach, it has already attracted a lot of new users. Read our Chia Network token price prediction to see what is going to happen to the asset in the nearby future.
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Chia Fundamental Analysis
Chia (XCH) is a coin circulating on Chia Network – a radically new blockchain platform created by BitTorrent's inventor Bram Cohen. Chia is governed by Chia Network Inc., a company with a plan to go public and an ambitious goal to make Chia an “enterprise-grade digital money”. Chia Network is a so-called Level 1 solution, like Bitcoin or Ethereum, since it doesn’t utilize the existing infrastructure and the whole network is built from scratch, including Chialisp – a smart transaction programming language. The main feature making Chia different is the new consensus protocol called Proof of Space and Time. It demands that the network’s participants either use the empty space on their hard drives for farming (as it’s called, instead of Chia mining) or solve more computationally-intensive puzzles (for “time”). Farmers can join the network with as little as 100 Gb of space. This makes Chia farming a lot more accessible for the average person than Bitcoin or Ethereum mining, which demands using special equipment and carries massive energy costs. Very low energy usage is another advantage of Chia, which prides itself on being green.
Chia hasn’t had an ICO and instead was pre-farmed for a while before its mainnet’s launch in 2021, after which its transfers became available. There is no cap on the total amount of Chia, but it’s expected to undergo halvings every 3 years.
Chia Live Price Chart
XCH token became available for trading on May 3, 2021, with an initial price of $850, but skyrocketed to the all-time high of $1934 straight away, on the same day. It was corrected after that, going down to $612 and then the Chia Network coin was floundering till the middle of the month.
At that time the asset price got affected by Elon Musk’s complaints about Bitcoin’s energy consumption. As Chia Network offers a greener alternative to the main crypto, its price rose, reaching $1623 on May 15. XCH couldn’t sustain such a high price and in a matter of days coin’s value dropped to lows between $600-$700. It can be explained by the calming of the initial interest wave, but also by the news about hard drive shortages related to the mining of XCH tokens.
The summer season was signified by the overall bearish tendencies of the crypto market, and Chia Network token price started to fall down. On June 22 the coin was already traded for just $230, reaching the lowest level of the period.
From the end of June asset’s price got stabilized and for the next month, it was traded around $220-$240. At the end of July, the price dropped even lower but started to recover in August as the whole market went up, though XCH couldn’t break through the resistance level of $261.
Even when most of the assets started gaining the price in September, the Chia Network coin’s value stayed low, and after short rising to $273 on September 6, the asset continued to fall, reaching $147 on September 29.
In October the price couldn’t go higher than $170, most of the time being traded for around $155. In the first half of November, the token managed to reach $208 but was shortly pulled off back to the level of $140.
Ever since that time XCH was in a constant downtrend, without any signs of a price recovery. In February 2022 the token was traded around $80-$85, but from February 20 it has stayed below $70.
Many of the experts assume that the coin will move along with the Bitcoin market and can increase in value over time. But there is also an opposite opinion about the token and most of the experts predict the token to continue losing its value, which can shrink to $12 by the end of 2022.