Decentralized projects have seen a huge development shift in 2021 and continue to attract attention from the community. 0x protocol focuses not only on creating a decentralized platform but also on cheap and fast transactions between Ethereum assets. Despite the crypto market staying bearish, the token showed a significant rise last week. Read our ZRX crypto price prediction to understand how it’s possible and what to expect from the asset next.
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0x Protocol Token Fundamental Analysis
ZRX is the governance token for the 0x infrastructure protocol that allows the trading of ERC-20 tokens and other assets on the Ethereum blockchain without intermediaries like the traditional centralized cryptocurrency exchanges. Thus the trading of Ethereum tokens becomes cheap and can be done directly from the wallet.
0x uses open-source, publicly audited smart contracts that work together to provide decentralized exchange functionality. Those smart contracts produce a flexible, low-friction trading protocol that can be easily used by the developers of other projects. The code for the token executing swapping is shared on the 0x main page.
0x was launched in 2017 by 0x Labs — the organization that developed a Decentralized exchange protocol with the infrastructure to support the global exchange of tokenized assets and create the ecosystem for numerous p2p transfers.
According to the project team, the main aspect of the project’s infrastructure is the improvement and management of the liquidity sourcing. For this goal, they created an application programming interface (API). 0x API is considered a liquidity solution for DEXs and other platforms, including Ethereum, Binance, and Polygon.
To step out from the numerous DeFi projects 0x focuses on the tools that are helpful for the broader ecosystem development, including the tool for the liquidity aggregation and also the feature called Matcha that works as a search engine for trading on DEXs. Thus the users of 0x get access to the simplified trading process, compared to the other DEXs. Moreover, 0x protocol supports both ERC-20 and ERC-723 tokens.
After the version 3 update in 2019 staking capability became available for the users, allowing them to receive the token as a reward.
ZRX token powers the ecosystem, and is also used to pay the transaction fees on the platform. Those fees are used to incentivize the market maker's liquidity. Nodes host an off-chain order book and offer the applications that present the data needed to perform the transactions paid in ZRX.
0x Protocol Token Live Price Chart
After following the bull rally in April and May 2021 when the ZRX token reached the price of $2.3 and sustained around $1.7, its chart started to decline at the end of the month along with the bear trends of the crypto market.
The ZRX token reached the level of $0.54 in the middle of July when the whole crypto market was down. In the following three months the market stayed very volatile and the asset price couldn’t find any stable position and kept bouncing between $1.3 and $0.81.
As the altcoin season approached in October, the ZRX token price stabilized around $1 and then was pushed up reaching $1.3 at the beginning of November. After sustaining this level for two weeks, 0x protocol was pulled off to $1.1 - $1.2. At the end of the month, the attempt to increase the value didn’t succeed and ZRX went down to the level of $0.79 - $0.77.
The 0x protocol token chart has been declining since then. By the beginning of March, it had lost over 50% of its value and was traded for $0.49. March though was quite a successful month for the ZRX coin. At the beginning of the month, it was traded for around $0.52 but was gaining the price till the end of the month reaching $0.82. It continued to grow in April reaching $0.91. After that, it experienced a setback losing 22% of its price, but in the recent days managed to turn up again reaching $1.0 on April 20.
The ZRX token price prediction is bullish in the long perspective, though analysts don’t expect the asset price to jump higher than $1.3 by the end of the year. More optimistic experts consider ZRX reaching $2 this year as a possibility.