Zilliqa is one of the veterans of the market, launched during the previous bull run of 2017-2018. As analysts, it is important for us to objectively and proportionally evaluate projects, whether old or new, especially when it comes to on-chain activity. At the moment, there is no significant activity within the network comparable to competitors. So its 2 stars out of 5 and 2 only because of the significant trading volumes on CEXes( which, in reality, is not a reliable indicator of a healthy network ofc).
All metrics and detailed conclusions are below:
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Total Value Locked (TVL) and the number of dApps are excellent indicators in this case(pic.1). No interest from investors in interacting with Zilliqa financial instruments.
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DEX Volume. Everything is in pic.2. Does anyone know other products on Zilliqa with not such a ridiculous volume?
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Volume vs. Real Volume. While its nearly impossible determine the true level of wash trading in Zilliqa, the difference in volumes between Coingecko/CMC (which interact with exchange APIs) and "Real Volume" provided by the Messari service(pic.3) is big. Compare it with CMC/Coingecko charts(30mln vs 6mln). To be fair, wash trading is present in practically all trading nowadays, but since the on-chain activity is practically dead in Zilliqa, trading on CEXes was considered.
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On a positive note, the project's development team continues to work on improving the platform, which could help attract more activity in the future. New addresses and daily txs are fine. While it is impossible to evaluate the nature of these transactions or determine if the new addresses are unique, the official Zilliqa block explorer data shows that the network is running smoothly(pic.4).
Recently, Zilliqa launched EVM compatibility, meaning users can integrate ZIL into their Metamask wallet. This gives hope that the project has chosen a direction for interacting with EVM-compatible networks, and this will help them move forward in attracting liquidity and activity to the network.
P.S. This review may appear critical of Zilliqa. It is critical because the project issued the token and received significant funding back in 2018. While Zilliqa has very solid and promising technology(e.g. shards implementation) and Web3 industry should value such legit players, it should be evaluated based on what has been accomplished during this period and compared to competitors from the previous cycle. If anyone has info about how Zilliqa plans to find its PMF in the new realities and capture a significant share of the decentralized finance (or metaverse, as they claim) market, feel free to share and discuss it in the comments. Show Less
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