The cryptocurrency market is expanding at a fast rate. With it, blockchain technology is becoming more vital in the recent technological era. It has grown so much so that users can now launch their own projects in some of these blockchains and become successful while doing so. However, such a thing is not as simple as it may seem. A lot of technical knowledge might be required for launching your own token or any other project in most of the cryptocurrencies (i.e. Ethereum). To make this much easier for developers, cryptocurrencies such as Klaytn were launched.
Klaytn has become one of those networks that are so simple to use and yet so effective. With its native token KLAY, Klaytn has been slowly climbing the cryptocurrency ranks and become a rather profitable investment. If you want to learn more about this promising cryptocurrency, then you are at the right place. Before looking at the plans and potential price of KLAY in the future, let’s briefly go through the fundamentals of Klaytn.
Fundamental Analysis Of Klaytn
Klaytn was founded by Jaesun Han, the CEO of GroundX, which is also the company involved with the creation of Klaytn (together with Kakao). Han had enough expertise to establish credibility with crypto communities. He has a Ph.D. from Korea Advanced Institute of Science and Technology (KAIST) in computer science and electrical engineering. Before the foundation of GroundX, Jaesun Han was involved in various researches regarding blockchains. Furthermore, Han worked in several other companies in the computer science field, including KT Cloudware (chief technical officer), NexR (founder), etc.
What makes Klaytn unique is that it makes blockchain look more user-friendly by providing simpler tools compared to other blockchains. Klaytn uses a hybrid model of both public and private blockchain. A public blockchain is a fully decentralized blockchain that anyone can have access to. A private blockchain is more centralized because only a specific set of nodes are a part of it. Using this hybrid model, Klaytn tries to achieve both high scalability and decentralization to some extent.
Due to the low gas fees, easy accessibility, fast speed, and scalability, Klaytn provides an efficient medium for creating Blockchain Applications (BApps).
Klaytn has a very specific governance council that is composed of many businesses and organizations worldwide. These businesses serve as a network of their own and are responsible for efficiently securing the network. The Klaytn Governance Council can make changes to the network such as fees, structure, and many more. The main goal of such a council is to help the Klaytn network grow in the long run. As the main base of consensus in the Klaytn network, the Klaytn Governance Council is perhaps the most important feature for maintaining a secure and large ecosystem.
Why would businesses use this blockchain technology in the first place? The answer to that is quite simple. Blockchain technology provides a much more transparent and data managing than any other form of technology. Transactions are transparent, accessible by anyone, much faster, and cheap. To illustrate, a block is generated every second, and 4,000 transactions are conducted per second. Gas fees are considerably lower than the likes of Ethereum.
Since Klaytn uses smart contracts, which are sets of codes that users can use to launch their own projects, businesses can also do that to grow in the blockchain. Furthermore, Klaytn uses Ethereum Virtual Machine (EVM), which is a system that supports Ethereum projects in the Klaytn network.
Another feature of Klaytn is the Klaytn Improvement Reserve (KIR). The KIR is a system that is involved in rewarding some of the users for their contribution to the network. Everyone can make proposals in the Klaytn network, and that does not go unnoticed. If a proposal is accepted and new changes are done to the network, the users responsible are rewarded with KLAY tokens. In this way, the network incentivizes the nodes to continually strive for improving Klaytn. Such contributions to the network are the fundamentals of Klaytn’s Proof-of-Contribution (PoC) system.
A relevant example of a KIR proposal is the fee delegation. This proposal entailed that partners in the Klaytn network do not pay transaction fees. Instead, the Klaytn network itself is responsible for paying them. Due to this, developers may favor a network such as Klaytn and all the helpful features it provides. Another proposal would be the one by Quantstamp that involves on-chain analysis, which is known as RT-Monitor.
Rank: 126
Different from most other cryptocurrencies, Klaytn uses neither Proof-of-Work (PoW) nor Proof-of-Stake (PoS) for securing the network. According to the developers, both PoW and PoS have some setbacks, so Klaytn uses Istanbul BFT. The latter is similar to Practical Byzantine Fault Tolerance (pBFT). The idea behind such mechanisms is that block validation undergoes some phases before it is verified. If the block does not go through a specific round, nodes move it to another round. Furthermore, if a node is underperforming, the network ‘tolerates’ it. The main difference between PBFT and IBFT is that the latter is optimal for the hybrid blockchain that Klaytn uses. Everyone can be a part of the network, but only a specific set of nodes are responsible for securing each transaction.
Let’s look at the tokenomics of Klaytn. As suggested, the native token of Klaytn is KLAY. The total supply of Klaytn is around 10.6 Billion KLAY. The circulating supply is around 2.5 Billion KLAY as of July 2021. The transaction fees together with the constantly issued KLAY tokens are known as a block reward in the Klaytn network. 34% of this block reward goes to the Klaytn Governance Council; 54% of the reward goes to the consensus nodes; 12% are designated for the KIR rewards.
In order to obtain KLAY tokens, you can use cryptocurrency exchanges that are safe and legitimate. The best choices for Klaytn are Bittrex, OKEx, Gate.io, etc.
After purchasing KLAY, you should store your tokens in a safe cryptocurrency wallet. Some of the best crypto wallets that support Klaytn are Ledger (hardware), Trezor (hardware), Coinomi (software), etc.
Also read: Helium Price Prediction 2021 and Beyond – Is HNT a Good Investment?
Klaytn Price Prediction 2021
If investors take advantage of the current dip in the prices of cryptocurrencies, another bullish trend is inevitable. If Bitcoin increases in the same way as it is projected, others may follow, including Klaytn. The recent partnerships that Klaytn has had can make it a very promising investment in both the short run and the long run. To illustrate, Klaytn has partnered with OpenSea in an attempt to dive a little deeper into the NFT world. Since NFTs are in the center of attention as of 2021, this can likely drive the price of KLAY tokens higher. Moreover, the Samsung Galaxy Note 10 was promoted in Korea as a ‘Klaytn’ phone, enabling new features for Klaytn users that purchase the phone. So, with KLAY already becoming a worth-considering investment for traders, its price can easily exceed its record and may as well reach as high as $8 by the end of 2021.
Klaytn Price Prediction 2022
The demand for KLAY tokens is continually increasing. Companies and businesses are slowly shifting their focus into blockchains such as Klaytn because of its profitable features. Furthermore, cryptocurrencies are becoming more popular each day. By 2022, their utility might be even more important than it is now. Other things equal, the price of KLAY can possibly range from $10 to $15 in 2022.
Price Prediction For The Next 5 Years
It is worth noting that Klaytn has a limited supply of 10.6 Billion KLAY. A limited supply makes Klaytn have deflationary properties, meaning that its price may increase as Klaytn becomes scarcer. In the next five years, Klaytn looks to become the easiest and best blockchain for new developers that may not necessarily have a lot of technical knowledge about launching and creating applications in the network. As the ecosystem grows larger, more institutional investors may jump to Klaytn due to all the profitable features for businesses. Another potential price factor that is worth mentioning is the BTC halving event that is planned to occur in 2024. Judging by the previous BTC halvings that were correlated with bullish trends, the next BTC halving can also cause a bullish trend in the crypto market.
Due to all these factors, the price of KLAY can easily go to at least $25 in the next five years. With that in mind, such price increases can help Klaytn get into the top 10 crypto market rankings based on market capitalization.
Klaytn Market Prediction
Wallet Investor
Wallet Investor predicts that Klaytn can keep increasing in both the short and the long run. In the long term, they predict that KLAY can go close to $11.
Capital.com
Capital.com also predicts an increase in the price of KLAY in the long run. They predict that Klaytn can exceed $10 in the long run, and it may even surpass $15 in the years to come. Only time can tell whether such predictions can be correct.
Our Klaytn Prediction
Due to all the reasons mentioned above, including the possibility that Klaytn may have more partnerships in the following months and years, we at Crypto Academy predict that KLAY can go close to $10 in 2021. As for the long run, Klaytn may easily climb up the rankings, and its price may range from $25 to $35 in the next five years. We do believe that Klaytn needs to engage more with its community if they want such an increase to happen.
Historic Market Sentiments
2020
The Klaytn mainnet went live in the first few months of 2020, with the KLAY token debuting at $0.12 on April 5th. In the first couple of months, the price of KLAY was relatively stable, but it managed to increase up to $0.37 in June of that year. After a slight dip to $0.14 in July, the price started a bullish run in August. By the end of August, the price of KLAY was around $0.83. The price started declining after that, and it was around $0.5 by the end of the year.
2021
Starting 2021 at around $0.5, KLAY joined the bullish trend caused by the BTC halving of 2020. In February, the price went to $1.84. By the end of March, KLAY reached its highest of all time at $4.38. This was a 776% increase from January 1st and a 3550% increase since its launch. Since every bullish run is followed by a bearish run, the price of KLAY has dropped to around $1 as of early July of 2021, which is still 733% more than its initial price in April of 2020.
With an average price of $1 and a circulating supply of around 2.5 Billion KLAY, the market capitalization of Klaytn is around $2.5 Billion, which puts it at number 36 in the cryptocurrency market rankings. The fully diluted market cap of Klaytn is around $10.3 Billion.
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FAQ
Is Klaytn a good investment?
Klaytn is a very good network for startup projects that can be very profitable, even if you do not have too much technical knowledge for creating applications. Furthermore, since the price of KLAY is expected to increase, Klaytn might be a good investment.
Can Klaytn price ever reach $10?
Yes, Klaytn can easily reach $10 because the supply may become scarcer and its demand may increase in the future.
Is Klaytn worth buying in 2021?
Klaytn can be worth buying in 2021, especially after the current price dip. If you take advantage of this dip, you may have profits in the future as its price is predicted to increase.
Can Klaytn price increase?
Yes, the price of KLAY is predicted to increase by various experts because of several price factors such as supply and demand, partnerships, efficiency, etc.
How to buy KLAY?
If you want to buy KLAY, you should use trusted cryptocurrency exchanges such as Bittrex, OKEx, Gate.io, etc.
We hope this article has helped you understand everything you were interested about Klaytn. If you want more information about crypto and more price predictions, check out our voluminous “Coins” sector here at Crypto Academy.
Takeaways
- Klaytn is a Korean-based cryptocurrency that provides simple tools for launching Blockchain Applications (BApps) for developers.
- Klaytn uses a hybrid model of both public and private blockchain, maintaining decentralization and high performance at the same time.
- Klaytn uses the Istanbul BFT consensus mechanism.
- The price of KLAY has increased ever since it was released in 2020.
- The price of KLAY is predicted to increase in both the short run and the long run.
- We at Crypto Academy predict that KLAY can go close to $10 in 2021.
- As for the long run, Klaytn may easily climb up the rankings, and its price may range from $25 to $35 in the next five years.