Zilliqa was one of the projects expected to perform well in January, due to its mainnet launch. However, due to sluggish performance in the entire market, the price didn’t pump much even after the mainnet. It has been trading pretty much in tandem with Bitcoin (BTC). However, from a more long-term perspective, Zilliqa is still the project to watch. That’s because, even after it went live on the mainnet, there is still so much in store that the team is working on.
Some of the things they are still working on include a more efficient backend for Scilla, formal verification and more efficient smart contracts. However, one improvement that could create lots of excitement in Zilliqa (ZIL) is support for ZkSnarks. ZkSnarks is a technology known for its superiority in anonymizing transactions. It is also quite useful in increasing scalability, through off-chain transactions, and this is the aspect to this technology that the Zilliqa team wants to tap, as seen in this except from the Zilliqa blog.
“Beyond this privacy use case, ZkSnarks are being actively applied in the area of verifiable computations, where, a client performs a computation-heavy task off-the-chain and produces to the miners a “proof of work” that can be verified very efficiently. This specific usage of zkSNARKs can lead to a trustless and secure off-chain computation layer atop Zilliqa.”
This could drive excitement in Zilliqa because, by becoming more scalable than it already is, Zilliqa would be more competitive in handling large scale Dapps both aimed at the mass market, as well as enterprises. This could significantly drive up the number of transactions on the Zilliqa blockchain, and by extension the demand for Zilliqa (ZIL). This makes Zilliqa’s prospects going forward quite good, as Dapps pick up on this blockchain.
But in spite of all this, Bitcoin is still king and how it moves determines how the entire market will move. As such, even for high potential altcoins like Zilliqa (ZIL), it still makes sense to look at the price movements of Bitcoin (BTC). Luckily, for Zilliqa (ZIL) investors, Bitcoin (BTC)’s prospects in 2019 look good. Bitcoin has established strong support just above the weekly 200-day moving average at $3200, an indicator that it possibly isn’t going much lower. The next step could be several months of consolidation before it enters into another Bull Run. As such, for Zilliqa, which has very strong fundamentals, there is a good chance that it has hit the bottom too.
Therefore, at current prices, Zilliqa presents a nice opportunity to accumulate. That’s because, once the bulls return, it will be among those that are likely to perform well. Not only is it supported by some very strong fundamentals, overall market sentiment is slowly turning bullish, albeit slowly. Institutional money is beginning to take an interest in crypto, including pension funds. This means that the next Bull Run could be huge, and Zilliqa is uniquely positioned to make huge gains in this Bull Run. It’s one of the cryptos to watch this year.