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features, history and investment prospects

Currently Astar cryptocurrency is the native token of the Astar project. It is designed to provide a basic income for developers, including storing and enforcing transactions, paying fees, and managing the protocol. For management, users are given access to the Astar Network application, in the personal account of which you can see the current balance, transaction history and income received from staking. Recently listed on Binance. Currently Astar cryptocurrency price is $0.0718 per unit.

The history of the appearance of the Astar token

under consideration Astar token is a relatively young project. It appeared in order to become a hub (platform for representatives of the cryptocurrency industry itself) for the implementation of smart contracts in the well-known Polkadot ecosystem. These are the plans of the developers, and they are being consistently implemented.

About the parent project

Interest in the Astar cryptocurrency is largely due to the reputation of the parent project. The Polkadot cryptocurrency and ecosystem, formerly known as the Plasm Network, was created by the famous developer G. Wood, who is also the founder of the large Ethereum project. Polkadot is an open source decentralized blockchain. Within the network, there are several parachains, full-fledged, independent blockchains that have their own tools and tokens. This approach, according to the founder, makes it possible to simplify the launch of new projects, and also ensures fast and safe exchange operations between the blockchains of the network. However, the developers themselves call this technology multichain.

Analysts consider Polkadot a direct competitor to the still stronger Ethereum, currencies compete for the next step, just as, for example, Ethereum itself competes with Bitcoin. True, according to the developers, each has its own niche, and there are no plans to replace one currency with another.

As part of the ecosystem, users are offered already developed tools for scaling blockchains, as well as decentralized applications.

Cryptocurrency now, plans and updates

The founders of the project plan to maintain the current status of the currency intended for intra-network settlements. No significant changes to the system are foreseen, and the founders see this as a big advantage. Analysts and investors are also positive about the current conservative approach:

  • The system is smoothly updated.
  • System-wide massive updates are not performed.
  • Hard forks (radical protocol changes that are incompatible with previous versions) were abandoned.

From the point of view of tokenomics, stability is a significant characteristic of a token. But for now Astar token cannot boast of a stable position in the market.

There is now every reason to expect Astar to take Web3.0 scalability to a whole new level. It is expected that progress will lead to a cheaper decentralized Internet and an increase in the speed of data exchange, and will also become fully compatible with Ethereum.

Token features

ASTAR cryptocurrency

Astar Network acts as a hub for decentralized applications. The application is fully compatible with Ethereum, supports various software and technological solutions for working with crypto technologies:

  • DApp – applications that work in a decentralized way. In practice, this means that there is no physical server that manages the operation of the entire network. Those. users have a significant impact on the functionality, unlike the owner company, which does not completely control the process. The source code is open, and the developer theoretically cannot change the functionality without the consent of users. This provides a high degree of flexibility, adaptability, and therefore competitiveness. In addition, stability and transparency is a feature of such systems, provided that it does not affect privacy.
  • This is binary command format for stack-based virtual machines. The technology allows deploying client and server applications on the Internet. It is considered more promising than the traditional execution of smart contracts.
  • The mechanism for storing cryptocurrencies in electronic wallets. Thanks to technology, buyers can avoid purchasing expensive equipment to ensure proper storage and preservation. Staking is offered to customers on a commercial basis. The amount of the fee depends on the coin and the storage period.
  • layer2 – a tunneling protocol designed to create virtual private communication networks over the World Wide Web. The main task of the protocol is to solve problems related to transaction speed and scaling – these problems are common to all decentralized applications, including cryptocurrency networks.

Currently, developers are positioning Astar as a first-class hub based on decentralized technologies. Whether she is destined to become such, time will tell. So far, in their assessments, experts rely mainly on the experience and reputation of the parent project and the founders. There was not enough time to evaluate the functioning of the crypto network itself. Investors did not see any negative information, it is too early to assess the positive experience.

At the same time, in order to understand the value of the currency, it is important to understand that currently the most demanded and popular application for dApps is Ethereum. More than 3 thousand applications have already been registered in this network, and the direction continues to develop. The main competitors of the technology in the market are already established leaders: Bitcoin and Litecoin.

Tokenomics

In order to understand the economic essence of the token, it is necessary to conduct a detailed analysis of the network. For now, we can talk about the assessment of the entire Polkadot ecosystem. The system tokenomics model is characterized by the presence of the following functions:

  • Staking. How it works in an ecosystem has been discussed above.
  • Transaction fees. An important point is that not all funds can be considered income, since you cannot constantly work on old technologies. New attack prevention algorithms must be constantly developed and ensure that they remain economically viable and competitive, otherwise the demand for the service will fall.
  • DAPps reward mechanism. This is the basic income for developers.
  • Control. With tokens, you can vote for protocol updates or other innovations.

As you can see, the economic justification allows Astar to be in demand.

About mining

Astara refers to a type of cryptocurrencies that create an asset through transactions between separate independent nodes of mining and other technologies.

Where and how to buy

You can buy cryptocurrency on BKEX and Gate.io, the most active trading is on Binance. The listing announcement on this exchange came out in February 2022, which led to an increase in quotations.

Cryptocurrency Growth Prospects

Currently, the market capitalization of the currency is 242.20 million dollars. There are more than 3.40 trillion in circulation. units. The daily volume is 12.80 million dollars. The price fluctuates in the range of 0.0658-0.0753 dollars per unit.

Currency quotes do not differ in stability. The spread of values ​​for a relatively short period of time, from January to mid-May 2022, is 0.42 to 0.069. The exchange rate fluctuation per day is 0.068-0.075.

At the same time, many are wondering why Astar, having a good economic basis, falls all the time, perhaps something is wrong with the project. In fact, nothing significant is currently happening with the crypto project. The instability of the currency is not based on sufficiently weighty fundamental factors, and most experts explain it solely by the overestimated expectations of investors.

An asset, with proper experience, is suitable for trading on volatility, however, as analysis shows, it is too early to buy it on credit in the expectation of sustainable growth. You can buy Astar only if you plan to constantly monitor the state of the cryptocurrency market in general and this asset in particular.

Astar is currently being invested by those who believe in the rapid growth of the cryptocurrency market, or at least those who expect that crypto technologies have a great future. The assumption can be considered justified, if you do not take into account that the path to the top may turn out to be too long, and various force majeure, relating to both the market as a whole and a particular asset, can seriously spoil the luxurious prospects.

Even if the choice for investment is not particularly great. It must be taken into account that Astar is not a suitable tool for the “buy and forget” strategy. But it is perfect for trading for those who follow the market and know a lot about it. Significant fluctuations with a subsequent return to their original positions allow you to earn good money.

What analysts say

Since this currency is not stable, the forecasts sound very different, among them there are many divergent assessments and opinions. Some experts predict rapid growth of cryptocurrency, in fact, takeoff. In their opinion, Astar should rise to 0.29-0.33. Others insist on the expected decline. Representatives of the bearish trend expect quotes at 0.09. Probably, the second ones are more right, if only because the second indicators are much closer to the current quotes, and there are no grounds for a sharp rise at the moment.

At the same time, it is important to note that practically none of the representatives of the expert community expects the cryptocurrency to return to previously reached highs, i.e. 0.4. To date, it has already become clear that the valuation quickly set by the market for the asset is significantly overestimated.

In addition, forecasts are made on the basis of technical analysis data, which is clearly insufficient. An asset exists for a very short period of time, less than a year, and it is still difficult to fully evaluate it by extrapolation.

Summary

No one will dare to definitely recommend for purchase a currency whose price is not steadily growing. Since unexpected turns may well lead to significant losses, even when we are dealing with seemingly reliable and promising instruments. However, there is no reason to refuse to work with it if you are already trading cryptocurrencies on exchanges. Just remember to control the price and the factors that affect it.

The materials presented in this section do not constitute individual investment advice.

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