Can the coin regain momentum?


Ergo (ERG) Price Prediction: Can the Coin Regain Momentum? – Photo: Shutterstock

ergo is a proof of work (PoW) smart contract platform known for its peer-reviewed academic approach that is driven by research and its relationship with the Cardano network.

Ergo has an experienced team behind it with co-founders Alexander Chepurnoy

and Dmitry Meshkov, an alumnus of blockchain research firm IOHK, the entity behind Cardano. According to the Ergo website, Chepurnoy was also a co-founder of the leading blockchain oracle, Chainlink, formerly known as smartcontract.com.

The network’s native ERG token has gained over 56% in the past year, as of February 11, despite experiencing a bearish cycle since September 2020.

Let’s take a look at the project and Ergo’s latest cryptocurrency price predictions for 2022 and beyond.

ERGO COIN PRICE FORECAST

What makes Ergo different?

Despite the growing popularity and migration of the industry to the proof of stake (PoS) consensus mechanism, Ergo is based on Bitcoin’s PoW consensus and an unspent transaction output (UTXO) accounting model.

Ergo said in his White paper that PoW was chosen for its extensively studied protocols, high security guarantees, and ease of use.

“The idea of ​​the Ergo platform is to implement ideas out of the box while keeping the network truly decentralized. It can be called a ‘blockchain 1.1’ implementation: a major update to blockchain technology rather than breaking-through revolutionary changes,” the company said. saying.

Ergo has made adjustments to the legacy PoW consensus to use a unique self-developed PoW consensus protocol called Autolykos. The changes aim to resolve PoW-related issues that allow ASIC-equipped miners to solve PoW puzzles faster than CPU- or GPU-equipped competitors.

With Autolykos, Ergo seeks to neutralize the threat of mining pools that control more than 51% of the computational power of a network, threatening decentralization and security.

Ergo’s unique version of PoW is best represented by its implementation of storage leasing, through which the network aims to reintroduce stagnant and lost coins into circulation to support the sustainability of future mining rewards.

“As the blockchain ages, potentially lost coins could create a deflationary trend for the remaining circulating supply. This issue is of great concern for the long-term sustainability and viability of the blockchain.” saying Ergo in a blog post dated January 27, 2022.

According to Ergo’s storage rental protocol, ERG holders will be required to pay a fee of around 0.14 ERG for each UTXO box that is not spent over a four-year period. However, the storage room rental protocol has not yet started.

Since block rewards decrease over time for capped PoW cryptocurrencies like BTC and ERG, miners only have to rely on network transaction fees once the token production quota is complete. Through the storage rental protocol, Ergo aims to provide additional incentives for its miners.

“Miners are the security layer for the proof-of-work blockchain and it is of the utmost importance to provide economic incentives for miners to maintain and maintain the network. Storage fees are designed to add a layer of predictability for future block rewards,” Ergo said.

“Storage leasing is an innovative and novel solution that aims to increase incumbent interaction while striking a balance between digital scarcity and long-term incentives,” Ergo added.

Another major differentiator for the network is Ergo’s conception with no pre-mining, no initial coin offering, and no venture capital funding, which is seen as a major draw for decentralization purists.

What is an ERG coin?

The ERG coin is the native token of the Ergo smart contract platform.

According to Ergo white paper, ERG issuance (production and release) is scheduled to be completed within the first eight years from its genesis block (i.e. July 1, 2019), after which miners will only receive ERG from mining fees. gas. By comparison, bitcoin issuance is scheduled to end in the year 2140.

Ergo says that the storage rental fee component of its protocol makes it possible for Ergo to run a short broadcast program.

“Miners will be highly incentivized to secure the network even in the absence of a block reward subsidy and this will lead to a more stable mining reward than just relying on transaction fees miners will also receive,” Ergo saying in reference to their storage rental fee protocol.

ERG has a limited supply of 97 million coins. ERG is used to perform any transaction on the Ergo blockchain and is used to reward miners.

According to ErgoERG started with no coins in circulation and the entire coin supply will be minted during the first eight years of the Ergo mainnet.

However, in November 2021, Ergo proposed an increase in the years of issue to 2057, keeping the same supply cap.

Currently, the circulating supply of ERG coins stands at more than 32 million, while their total supply exceeds 35.3 million, data from CoinMarketCap presented.

Ergo Coin Analysis: Latest Price Action

According to the ERG Coin price chart, the token is trading at $3.56, as of Feb 11, 2022. ERG Coin is the 380th largest cryptocurrency and has a market capitalization of around $ 114 million, according to CoinMarketCap.

Ergo to USD chart, January - February 2022

In the last year before February 11, 2022, the ERG token price increased by 56.71% from a closing price of $2.31 on February 10, 2021 to $3.62 on February 10, 2022. It reached a maximum of 52 weeks of $19.60 on May 18. ERG’s 52-week low is $1.24, set on February 14, 2021.

The value of the ERG coin has seen selling pressure recently and has dropped over 12% in the last month.

Ergo to USD chart, 2017 - 2022

Ergo coin news: Affinity with Cardano

Members of the Cardano community appear to have an affinity for the Ergo blockchain due to their shared principles for decentralization and a research-based approach, support for the use of a similar extended UTXO (eUTXO) ledger model. and Ergo’s partnership with Emurgoone of the founding entities of Cardano.

In the second half of 2021, Ergo released a beta version of its decentralized exchange (DEX) called ErgoDEX, which is designed to be compatible with the Cardano network.

ErgoDEX is still under development and interoperability with Cardano is expected in 2022, a blog post saying. Ergo plans to introduce decentralized finance (DeFi) lending services on its DEX and is considering introducing an ErgoDEX token.

In 2021, Ergo introduced its first stablecoin called SigUSD on its network. Ergo’s first metaverse called vallesigma launched its land sale auction in mid-January 2022. Meanwhile, the network’s first decentralized initial token offering platform called ergonomic pad kicked off its final token sale in January.

Ergo also has its own non-fungible token (NFT) called market Ergo Auction Housethat in his last to update brought royalty features to artists and options to list in non-ERG tokens.

Ergo (ERG) Price Prediction: 2022-2030

According to a short-term Ergo crypto price prediction from coin codex (as of Feb 11), the value of the token could drop over 2% to $3.46 by Feb 16, 2022. CoinCodex added that technical indicators showed current sentiment towards ERG to be bearish, while the fear and greed index indicated neutral among ERG investors.

“Based on our Ergo forecast, now is a bad time to buy ERG,” CoinCodex said.

Ergo Algorithm Based Forecasting Service Price Prediction wallet investor (as of Feb 11) suggested that the token may be a “profitable investment option.” Wallet Investor expected the price of the Ergo token to reach $10,752 in February 2023 and more than $37 in February 2027.

According to price prediction According to the ERG/USD forecast, the token could reach an average price of $4.98 in 2022. ERG/USD was expected to reach a maximum price of $16.81 in 2025 and $112.86 in 2030.

digital currency he expected the Ergo token price to trade at $4.88 in 2022. His Ergo crypto price prediction saw the token hit $7.62 in 2025 and $16.78 in 2030.

When looking for Ergo’s future price prediction, keep in mind that predictions based on algorithms and analysts may be wrong. Algorithm-based predictions are based on analysis of past performance, which does not guarantee future results.

It is essential to do your own research and always remember that your decision to trade should depend on your attitude to risk, your experience in the market and the distribution of your portfolio. You should never invest money that you cannot afford to lose.

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