Ahmadreza R.
Ahmadreza R.
Nov 07, 2021

Is Elastos (ELA) A Good Investment In 2022?

tl;drElastos is a platform for decentralized applications that aims to provide solutions for the limitations of Etherum and DApp platforms. It utilizes six key components to deliver its services with the best quality to stand apart. From a financial perspective, ELA underperformed compared to its similar projects and the market's top 1500 projects in terms of Return On Investment (ROI) over the last year (220% ROI). Its popularity has been increasing on Twitter, Reddit, and Telegram. Moreover, with an approximately $100 million market cap, Elastos is ranked 500 among all cryptocurrency projects. Finally, its liquidity score is 27% lower than the market's average score.
Is Elastos (ELA) A Good Investment In 2022?
Is Elastos (ELA) A Good Investment In 2022?
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Introduction

Elastos defines itself as the blockchain version of the Internet. Elastos team claims that Etherum and DApp platforms have limitations in scaling, such as low speed, lack of flexibility, and inconvenience for full applications. Elastos, a platform for decentralized applications, tries to bring solutions for these limitations.

How Does Elastos Work

Elastos consists of six components. Any DApp and project can use this series of powerful decentralized services. These components are:

  • Mainchain (Blockchain):

The Elastos Mainchain (blockchain) stores cryptographic proofs. It uses Bitcoin's (BTC) hashrate to secure the entire Elastos ecosystem. The Mainchain is a fully independent blockchain protocol that provides trust to the ecosystem.

  • Decentralized Identity (DID):

We no longer can even imagine living without apps, devices, and services that we use daily. However, the internet is under the control of several giant companies that force users to log in. Therefore, our data and identity are at risk.

Elastos provides Decentralized Identities (DIDs), a universal identity system, which is n open-source and allows enterprises and digital platforms to issue universal digital identities to individuals, applications, and devices on the internet. In other words, users no longer need to trust corporations. Instead, they trust code.

  • Decentralized Storage (Hive):

Hive is an innovative architectural model that enables users to own their own data. Using this technology, users can have access to beneficial features such as accessibility, data sandboxing, and Decentralized Identity (DID) integration.

  • Smart Contract Chain (ESC):

Developers are able to code, implement, and run smart contracts on Ethereum Virtual Machines (EVMs) thanks to Smart Contract Chain (ESC). Smart contracts written using Solidity are executable on the sidechain. In other words, the ESC is a high-performance, scalable smart contract execution solution.

  • Peer-to-Peer Network (Carrier):

Elastos Carrier is the conveyer of all the data transferred between participants in the Elastos ecosystem. In other words, it can be considered as the Modern Internet's integral communication network.

The Cyber Republic is a community governance mechanism, which works based on consensus.

Financial Analysis

When analyzing a project financially, gaining public attention is a critical factor to consider. Our data show that ELA's popularity has grown over the last five months. Its Twitter account saw an increase of 45% during the time frame, surpassing 50k followers when writing this post. Telegram and Reddit also saw growth in ELA's popularity, with 52% and 6%, respectively.

The Most Important Factors; Market Cap and Price

Elastos is ranked 500 among all the market's cryptocurrency projects with an approximately $100 million market cap. ELA's market cap rank saw many ups and downs over the last five months, with the minimum of 522 on September 3, 2021, and the maximum of 343 on June 11. Also, ELS's liquidity score is 27% below the market's average score, making it a difficult sale in bear markets.

ELA's price followed a moderated version of its market cap trend, fluctuating around $4. Starting at the price of $4.21 on June 11, 2021, reaching the peak of $6.98 on September 19, it now has the price of $4.8.

Already Invested in Elastos?

If you had invested in Elastos, the most important factor for you is Return On Investment (ROI). ELA's ROI is reported to be 220% over the last year, much below its similar projects in the "Smart Contract" category. Moreover, it underperformed compared to the market's top 1500 cryptocurrency projects in terms of ROI.

You are saying that Elastos is the best cryptocurrency to invest in?

It is curial to notice that every individual has a unique financial situation and preferences. Therefore, there is no universal solution that works for everyone. Labeling a cryptocurrency project as a "good" or "bad" investment requires you to define "good" and "bad" firstly.

After that, you need reliable data and reports about the market and cryptocurrency projects to decide your investment. Cryptologi.st is all you need. We provide up-to-date reports about projects and the market and simplify your decision process.

You can find our reports and easily compare the available investment options on our website.

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