Electroneum is a coin that was hyped heavily at launch and at one point, it was 10x its current market value. Now, the price of the coin is hovering around $0.025 according to CoinMarketCap price. The hype subsided and the coin went into a steep decline, leaving it at a rock-bottom trading value for a couple of years. Now, the promise of the platform is capturing attention once again and the coin is somewhat resurgent.
Everything You Need to Know About Electroneum
Electroneum (ETN) is an easily accessible cryptocurrency that can be mined as long as one has a smartphone at the very least. It was billed as the first cryptocurrency that could be mined anywhere by absolutely anyone. All it takes is downloading the Electroneum app onto your smartphone and you are good to go.
The core principle is that it would help those in the developing world get access to cryptocurrency without the need to shell out a hefty sum for mining equipment. The promise was a good one and many jumped onto the coin at launch. It did, however, meet some problems and things began to go downhill.
The first thing that happened to the currency that anyone with a smartphone could mine was — you guessed it, everyone started to mine it. Most blockchains get backed-up with increased usage. This happens all the time with Electroneum and there are still network teething problems because it doesn’t cope well with the load.
This is known as scalability in the crypto world. Electroneum needs substantial development in order to be scalable.
However, the currency isn’t down and out yet. There is currently active development on the blockchain, and investors are willing to take a bit of a gamble given the low market value.
What are the ETN Plans?
The plans for ETN are plentiful. In order for the currency to survive in the mid to long term, it will need a few things to happen.
- Electroneum needs to have a lot of blockchain development to allow transactions to flow easily at volume without clogging up the system.
- The currency needs to gain investment in order to fund more development. Creating blockchain networks isn’t cheap.
- Investors need to start seeing returns on their investments to build confidence in ETN.
Working in Electroneum’s favor at the moment is the fact that investors can only see the value increasing because it is at such a low. It has been creeping up gradually in the last few months, though it hasn’t done anything drastic. This small uptick has led many to predict that Electroneum is a coin on the move and one that will have a good 2021.
How Will Plans Affect ETN Value in 2021?
Currently, the blockchain is operating at a minimal level, with over 4 million people registered to use Electroneum. It only has the meager 100,000 transactions processed each month on the blockchain. Since mining the currency is so easy, it holds little appeal to investors, except those hoping for a bit of value from the cheap cost.
A popular trend on exchanges is traders that convert BTC to ETN and miners cashing out their ETN by converting it to BTC. At the time of writing, there is an average of $1.3 million in trade done daily with ETN.
The key thing to look for as a trader is how much this uptick trend continues. Currently, Electroneum appears bullish and there is little space for it to go if it drops. This is driving the value of trades mentioned above, with investors not seeing much risk because of the small prices involved.
Electroneum does benefit from an active development team that is currently working hard to change the fortunes of the cryptocurrency. This could even see big pay-offs for investors buying ETN now. If developers manage to get Electroneum working at scale, it could go a long way to restoring faith in the blockchain. When there is a high confidence level in the blockchain, prices tend to follow.
Electroneum currently has what is known as speculative confidence. This could turn into real confidence as developments are rolled out over the next year. As a result, it is worth having a look at this coin.