In a recently thriving crypto market, most cryptocurrencies have managed to outshine and some have topped the charts with their weekly gains. KLAY is among these names and has managed to become an investor favourite within the past couple of months. In part, because of its spectacular performance over the week.
Developed by GroundX, Klaytn is a subsidiary of the Korean technology company, Kakao. Klaytn brings together the benefits of a public and private blockchain and offers a hybrid infrastructure for corporate use cases.
The project makes use of service chains that can accommodate any web service, offering a tailored user-friendly blockchain serving the specific needs of a client. The network is much better than other popular blockchains such as Ethereum and can process over 4,000 transactions a second for a tenth of Ethereum’s gas fees.
Klatyn also offers high interoperability, which makes it easier for developers to host their custom blockchain applications on the network. It has partnered with numerous companies across sectors and continues to collaborate with businesses to increase its impact.
KLAY is the native token of the platform that grows in value with the increasing adoption of Klaytn. The token can be used for creating and running applications on the platform as well as serve as a reward token in the Klaytn Improvement Reserve. This token can be used to compensate developers when they report bugs, as well as to incentivize participants who help in the growth of the platform.
Klaytn recently announced a partnership that pumped the price of its token KLAY.
Klaytn’s Partnership With Animal Concerts Pumps KLAY’s Price
Animal Concerts, a US-based Metaverse concert organizer, has partnered with Klaytn blockchain to set up a K-pop universe in the Metaverse. As a result of this news, the price of KLAY has surged by over 50% in just a week and continues to show more optimism.
This move is part of the global expansion plan from Klaytn, to increase its exposure to the Korean industry. The partnership will also help Klaytn increase the number of NFTs traded on its platform since it is among the only three blockchains that share native support with the largest crypto NFT marketplace, OpenSea.
Animal Concerts soon has plans to issue their own cryptocurrencies and NFTs, on top of organizing and promoting concerts in the Metaverse. NFTs have been seen as a way to boost revenue for the music industry by Colin Fitzpatrick, the CEO of Animal Concerts, and he expects this integration to fill the losses encountered during the COVID-19 pandemic.
🚨 Attention 🚨
We have signed a strategic partnership agreement with @klaytn_official.
Klaytn will support us in minting NFTs for A-list celebrities, starting with an NFT auction for a HUGE household name artist in Q1 2022.
Read more: https://t.co/DM5hIjoKgu pic.twitter.com/vrM4kWBcS5
— Animal Concerts (@animalconcerts) January 10, 2022
Fitzpatrick explains that “technical limitations prohibit how many people can actually attend a concert in the Metaverse ” and since “Klaytn’s major goals are NFTs and Metaverse”; this partnership will solve some major scalability issues. Enabling the company to host concerts in the metaverse at the scale of a regular tour.
He does, however, share concerns regarding the decentralization of the platform, since Klaytn is associated with major corporate brands including LG Electronics and Shinhan Bank, who play a strong hand in governance.
In related news, the Klaytn foundation has decided to make changes to the tokenomics and governance of its native token KLAY, transitioning to a permissionless validator structure. This change is expected to increase participation from the general public by allowing them to become block validators.
Along with that, the network also plans to open a channel for communication, which can be used for decision-making processes on the network. These decisions, along with the Klaytn foundation will be responsible for selecting and promoting projects on the network.
KLAY Price Analysis
KLAY, the official token of the Klaytn blockchain began trading in April 2020, when the token debuted for around $0.12 but soon fell to half the price by the end of the month. The price maintained a sideways momentum until the end of July and surged up to $0.81 in about a month.
The token was hovering at around $0.50 from September to February next year and underwent a bull run in 2021 where KLAY reached its highest price of $4.38. And now that the bull run has long settled, KLAY is down by more than 93%, currently trading at $0.29.
KLAY had been in a consolidation phase for about four months now, but it recently broke out of the phase, breaking through the resistance at $0.23 and currently challenging $0.33. The 200-day moving average is acting as a support for the token, and KLAY’s price has been trading above this level.
The Klaytn blockchain released 10 billion tokens at the time of its launch, while the current supply in circulation is 3.1 billion. The total supply has increased to 11 billion, which means a massive 8 billion tokens are yet to come into circulation and this could impact the price significantly.
KLAY Price Prediction
KLAY Price Prediction 2023
Although positive updates such as the partnership with Ethereum Max have supplemented the price increase of the token in the short term, investors believe that the token will continue to hold at the current price level. And if it falls down, it might find support at $0.23.
KLAY was expected to perform brilliantly in the second half of the year, with a price target of $0.46. But considering the current supply of the token, this target seems much closer than previously anticipated. Investors can expect KLAY to reach $0.52 at maximum in 2023 while expecting an average performance of $0.42.
KLAY Price Prediction 2025
Given KLAY’s all-time high, the token is in for a rally around or before 2025, in part supplemented by the expected bull run in 2024. Plus, Klaytn’s focus on education, innovation and outreach is expected to further fuel the growth of the platform and consequently its token.
KLAY has a lot of room for expansion, and investors can expect the token to reach $1.23 by 2025. Technical parameters, however, show a conservative target of $0.75. But considering innovation and future plans that can increase the price of the token, such as the latest partnership, aren’t taken into account by technical indicators. Investors can rely on a combination of these factors and plan their trading strategies accordingly.
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