Developers building decentralized applications have many options when it comes to choosing the ideal blockchain on which to build and deploy their dapps.
Unfortunately, most of those options charge high transaction fees, some struggle with scalability issues, and of course there is the conversation about the impact of blockchain technology on the environment. Elrond is one of the blockchains positioned to overcome those challenges, but it has been flying under the radar and has largely gone unnoticed. Fortunately, its native token has performed exceptionally well thanks to the organic growth the project has enjoyed so far, and that growth has also brought greater exposure to the market.
EGLD, Elrond's native cryptocurrency delivered impressive gains during the latest bull run. It is currently trading at $ 142.37 after a 2.58% gain in the last 24 hours and a 40.16% gain in the last 7 days. Even more interesting is that the price has more than doubled during the ongoing bull run that began when it traded as low as $ 67.75. However, it still has some gains to cover before hitting its previous all-time high of $ 245.80.
EGLD's strong gains are supported in part by the general bullish sentiments that have prevailed in the market for most of 2021 and also by favorable tokenomics. For example, it has a low circulating supply of only 19.27 million coins, which is within the same scarcity level as Bitcoin, and the utility it provides to its native network. The maximum supply of the coin is around 31 million tokens. It also maintains the financial incentives that allow it to maintain the attractiveness of its proof-of-stake blockchain.
EGLD can be used for gambling, paying transaction fees, and also participating in governance on the Elrond blockchain. This kind of utility and its favorable tokenomics highlight the robust growth potential of the cryptocurrency even at its current price level.
Why Elrond Could Become One of the Most Wanted Blockchains
Elrond recently revealed that it is the first blockchain to become carbon negative in Europe as part of its commitment to conserving the environment. It managed to achieve the status through a partnership with a company called Offsetra whose agenda is to reduce the carbon footprint. Collaboration is a big problem for Elrond now that the conversation about blockchain consensus mechanisms such as proof of work and its impact on the environment.
Carbon negative status is a big problem because it could help attract more developers looking to implement their decentralized services in a network committed to carbon neutrality. Elron's appeal as a blockchain network is reinforced by some of its other benefits, such as smart contract support and high transaction throughput, which is currently 15,000 TPS. However, the speed of the transaction can be scaled to more than 100,000 TPS to accommodate any increase in network demand.
Elrond has already started attracting other blockchain projects looking for the ideal blockchain in which to launch their offerings. For example, the HUMAN protocol blockchain recently announced its transition to Elrond so that it can take advantage of better profitability, carbon negative status, and its high transaction throughput. More DeFi projects are likely to follow a similar path soon.