With blockchain technology becoming more important every day, certain problems come with it. The emergence of smart contracts has made it possible for users to keep various services decentralized, whether that is financial services, databases, supply chain management, etc.
The main problem with smart contracts is that they are not directly connected with Application Programming Interfaces (APIs). To solve such issues, oracles were presented. While oracles solved the problem to some extent, there were unanticipated costs as well as it entailed centralization.
To solve such issues, projects such as API3 come knocking. API3 provides ways to connect APIs with smart contracts in a more efficient manner. Despite its use, API3 also has its native token with the same name.
This article intends to educate users on the fundamentals of API3 as well as its potential as a cryptocurrency. Let’s begin with some brief information about the project.
API3 (API3) Fundamental Analysis
Many perceive API3 to be the Chainlink ‘killer’ due to the features that Chainlink cannot provide when it comes to APIs and smart contracts.
By eliminating the middleware with decentralized API (dAPI), API3 solves Chainlink’s problems. One implication is that with Chainlink, users that provide information remain anonymous, even if the information is flawed. While with API3, the users that provide information are not anonymous, and this means that if the information is flawed, those users face penalties. The Oracle bribing problem is solved in this manner.
This is achieved through the API3 Airnode The Airnode self-operates and maintains smart contracts within the API3 network. The Airnodes’ work is similar to cloud services.
The API3 Team
The founders of API3 are Heikki Vanttinen, Burak Benligiray, and Saša Milić.
Vanttinen is an expert when it comes to language machine. Benligiray was previously part of artificial intelligence and smart contract-related projects.
Milić is a software engineer and an expert in the field of blockchain. She excels at research and data science.
All in all, the team had the required expertise to develop such a complex yet necessary project.
API3 Token
The API3 token is the native token in the API3 network. It has several use cases such as:
- Staking: Users can stake their API3 tokens and earn rewards in return.
- Governance: Users can use their API3 tokens to govern the network. Through on-chain insurance, voters that stake can earn revenue due to dAPI.
- Collateral: The API3 token can also be used as collateral for the on-chain insurance.
- Disputes: If there is a malfunction or flawed data, decentralized apps in the network can create claims that the team later addresses.
- Payments: Last but not least, API3 can be used for payments within the API3 token and its dApps.
Tokenomics
Through the first private funding, API3 had raised around $3 million. After that, API3 had ts public sale, generating around $23 million.
The total supply of API3 is around 100 million API3. Out of this amount, 10 million were sold during the private round of sales and 20 million during the public sale. The rest of the tokens are planned to be vested in the following years. At the time of writing, 36.9 million API3 are in circulation.
API3 (API3) Price Analysis
According to CoinMarketCap, API3 initially had a price of around $1.30 back in December of 2020. The price was highly volatile in the following weeks. Following the bull trend caused by BTC, API3 started increasing as well. By April of 2021, API3 reached an all-time high at $10.31.
After that, the price of API3 started declining. It reached as low as $1.5 by June. Nonetheless, the price has started increasing again after that. Currently, the price of API3 is around $5.50.
With this price and a circulating supply of 36.9 million API3, the market capitalization of API3 is around $200 million, indicating that there is plenty of room for the price of API3 to grow. The fully diluted market cap is around $570 million.
Rank: 244
API3 (API3) Market Price Prediction
Because of the utility that API3 has, especially the solutions that it provides when it comes to oracle problems between APIs and smart contracts, many experts that API3 is yet to fulfill its potential. Therefore, some of these experts predict that the price of API3 can increase at large rates in the long run. Here is what some of them think:
Wallet Investor
Wallet Investor predicts that the price of API3 can increase in the long run. Their prediction sees API3 go at least 3x from the current price in the long run at around $15. While this may not seem like a lot, we have to consider the fact that by 2026, all the API3 tokens locked are going to be vested by then. This would see the circulating supply of API3 go to 104 million API. That would see the market cap of API3 surpass at least $1.5 billion.
Digital Coin Price
Digital Coin Price also predicts that API3 can increase in the long run. They estimate that the price of API3 could go as close to an average of $20 by 2026. As for an even longer run, they see API3 averaging $25 in 2028. That would mean a market cap of more than $2.6 billion with all the tokens in circulation.
Coin Data Flow
Coin Data Flow, also a reliable source for predictions, is primarily based on what percentage of Bitcoin’s growth will API3 have. They suggest that if and only if API3 has 100% of Bitcoin’s growth, its price could go as high as $900 by 2025. While that may be less possible, 50% of Bitcoin’s growth would see API3 hit $150 by 2025, while 20% would see API3 reach $28.
Coinskid
Coinskid also predicts that API3 has the potential to grow at large rates in the coming years. By 2022, they predict that API3 can hit a new all-time high. As for 2025, they forecast that API3 can go as high as $40.
Norris Digital Assets
YouTuber Norris Digital Assets gives a careful analysis of both the fundamental and the technical factors of API3. Based on his analysis, he suggests that API3 has the potential to go as high as $34 in the future as it has still not gained a lot of popularity among crypto communities. Once it does, API3 can finally reach its full potential.
Crypto Academy API3 Price Prediction
The fundamentals of API3 are exemplar. Few projects have such complex yet important services when it comes to oracle solutions. There are plenty of factors that indicate that API3’s success is inevitable.
To start with, the API3 University Initiative can help the team employ more bright and intellectual minds to join the community. Through this, API3 provides academic partnerships, where undergraduate students can get firsthand experience in a 1-year term through API3. They also have the fellowship program, which allows Ph.D. candidates and researchers to study API3 Airnodes and gain more experience in the API3 ecosystem. Last but not least, they also have the grants program, which allows both students and professors to have more access to resources related to blockchain, Airnodes, etc.
Of course, it is worth mentioning the vast amount of partnerships that API3 already has. Several partnerships have opened the doors for API3 to have more exposure, and this number of partners can increase even more.
Moreover, API3 already has some large investors that can increase the worth of the API3 token as well as its importance in the market.
Due to all these reasons, as well as the fact that API3 has a limited supply, we at Crypto Academy forecast that the price of API3 can increase at huge rates in the future.
API3 (API3) Price Prediction 2022
In 2022, we predict that API3 can increase in the first quarter. The price of API3 could go close to $15, meaning that API3 may reach a new all-time high, but the market cap would still not be as close to reaching $1 billion.
API3 (API3) Price Prediction 2023
In 2023, the price of API3 could be relatively stable, but an increase could still be noticed. We predict that API3 could average $20 in 2023.
API3 (API3) Price Prediction 2024
In 2024, there may not be any noticeable increase or decrease in the price of API3 prior to the BTC halving. As for the late months of 2024, we could see API3 reach as high as $30.
API3 (API3) Price Prediction 2025
In 2025, API3 could have one of its biggest runs yet. The price could hit $100 for the first time, making it a historical milestone for API3. This price is quite possible, considering that API3 is yet to gain the attention it deserves.
API3 (API3) Price Prediction 2026
Last but not least, 2026 could see the price of API3 soar upwards, especially midway through the year. With the mass adoption of cryptocurrencies taking place, and with the demand for Oracle solutions increasing, API3 could easily become a top 15 coin by then. The total market cap of cryptocurrencies could also go to immense rates by then as blockchain technology replaces traditional services. API3 could go at least $300 in 2026. With 100% of the total supply in circulation by then, this would give API3 a market cap of around $31.2 billion. In today’s market, this would see API3 rank in the top 10.
How to Buy API3 (API3)?
Here are the steps to easily buy API3 in the safest and most efficient way possible:
Step 1: Create an Exchange Account
First, you need to create a crypto exchange account on one of the exchanges that support API3. Some of the most reliable ones that support API3 are OKEx, Huobi Global, KuCoin, Gate.io, etc. You also have to verify your account in order to use all the features of the exchange.
Step 2: Fund Your Account
Once you create an exchange account, you need to fund your account. You can do this by transferring funds from an existing crypto wallet into the exchange account, or you can simply use a debit or credit card to buy USDT.
Step 3: Buy API3
Once you fund your account, go to the trading section of the exchange. Select API3 and type the amount of API3 tokens you want to buy with the amount of USDT you purchased earlier.
Frequently Asked Questions (FAQ)
Can API3 hit $100?
In the long run, API3 can hit $100 as the project is quite promising and the market cap of this cryptocurrency is relatively low.
Will the price of API3 increase?
The price of API3 is likely to increase based on the fundamentals of the project. Since many perceive API3 as the Chainlink Killer, it can definitely compete with Chainlink and even surpass it in the long run.
Where can I buy API3?
To buy API3, you can use cryptocurrency exchanges such as OKEx, Huobi Global, Gate.io, KuCoin, etc.
Also read: Beyond Protocol Price Prediction 2022 and Beyond – Will BP Reach $100?
Takeaways
- API3 is a blockchain-based cryptocurrency that provides efficient ways of connecting APIs with smart contracts.
- Many suggest that API3 can be the Chainlink Killer.
- The API3 team is composed of some of the finest minds of the blockchain industry.
- The API3 token is used for staking, governance, dispute, governance, and payments.
- The total supply is around 104 million API3, while the circulating supply is around 36.9 million API3.
- API3 had an all-time high of $10.31 in April of 2021.
- Experts predict that API3 can increase at large rates in the future.
- To buy API3, you can use exchanges such as OKEx, KuCoin, Gate.io, Huobi Global, etc.
- Overall, API3 is quite a promising project.