Nervos Project CKB Price Prediction 2022: Here’s What You Need to Know
The Nervos project is mainly concerned with blockchain interoperability. It tries to help developers build universal applications that can work on a variety of blockchain ecosystems.
It also allows developers to work with Layer 2 scaling solutions. To put things into perspective, Layer 1 refers to the blockchain architecture while Layer 2 is the network layer on the top.
What is the Nervos Token?
Nervos introduced their cryptocurrency offering, the CKB token (which stands for Common Knowledge Byte) in late 2019. Nervos Common Knowledge Base is the layer 1, proof of work blockchain protocol of the network.
It mirrors Bitcoin, being able to store any crypto-asset with security and immutability. It also offers features like smart contracts and layer 2 scaling.
The total supply of the token is over 35 billion, and the circulating supply is over 29 billion. No maximum amount has been specified by the company as of yet. The all-time Nervos Network ROI, according to CoinMarketCap, is at 56% currently.
Benefits of the Nervos Coin
Here are some of the benefits of the Nervos Network and its CBS projects.
Ethereum Force Bridge
In October 2021, Nervos announced that it has established a cross-network bridge with Ethereum. This allows for increased operability and token liquidity for transactions between the two blockchain ecosystems.
Various New Partnerships
The Nervos Network has announced partnerships with companies like MyCrypto, MELD, DIA and MEXC Global to further strengthen their network and set the foundation for future projects.
Upcoming projects
The Nervos Network has also started to work on its own NFT marketplace, called KollectNFT. They also have a number of collaborative projects that will see the integration of the Force Bridge and expansion on the existing model.
Important Details
One of the most important points to keep in mind is that the project is set for a huge upgrade in the recent future. There were plans to revamp the Layer 1 protocol last year, but they have been pushed back. Once completed, the upgrade will unlock more use cases and increase efficiency by cleaning up the codebase.
Short and Long Term Price Analysis
At the time of writing, the CKB token is valued at $0.014. Over the last three months, its price has taken a dip, falling from a peak of $0.035 which it achieved in late November.
After a steady 2020, the graph started climbing to massive heights in 2021. In March 2021, it reached its all-time high value of $0.044. The graph resulted in a W-shape for the past year, and has started the new year with a fall in value.
Short term analysis for the token is bearish, according to CoinCodex. However, the long-term remains promising for investors, with Wallet Investor predicting a rise to $0.035 in one year. They also estimate a trade amount worth $0.092 in five years.
Gov Capital is much more bullish than the other predictions. They project a value of $0.05 in one year, and a spike up to $0.31 by 2027.
An interesting pattern to note is that the token has been following the cryptocurrency market in terms of the rise and fall in value. So, a rough idea of the market sentiment can help potential investors make an informed decision.
The current fall in price is expected to be temporary, given that Nervos Networks has so many projects and partnerships lined up for the future. A crash for CKB is deemed unlikely, save for unexpected circumstances, and the long-term projections are bullish, albeit at a steady rate.
