Flow is a recent launch in the market but it has established a strong footing in the market in a short time. The proposition of the blockchain is expected to help it reach much higher than its current standing of 77th in the market in terms of capitalization. Flow coin peaked during the bull run in April and was able to established an all-time high at $46.16. The subsequent market crash proved fatal to the cryptocurrency and much of the gains accumulated were reversed. However, the crypto market trend appears to be reversing; thus, helping the cryptocurrency reach near its ATH.
At the time of writing, Flow stands at a price level of $25.14. The cryptocurrency had been consolidating in the recent time period and the current uptrend is expected to sustain as the consolidation period appears to have ended. Flow had stayed relatively stable in the daily timeframe but the performance had increased by 17% in the past week. The daily trading volume has dropped by 44%. Let’s delve into what Flow actually is and what is its future?
What is Flow?
Flow was created to solve a problem facing the Ethereum blockchain. Cryptokitties was the first NFT project on Ethereum’s blockchain. The project was so successful that it crashed Ethereum’s network. The activity surged dramatically causing network congestion. The launch of Cryptokitties made it evident that Ethereum – or any other current generation – blockchain is not ready for a mass adoption of the cryptocurrency technology. This led to the firm behind Cryptokitties – Dapper Labs – taking the initiative towards Flow. Instead of waiting for advanced blockchains to come to the market they decided to create their own.
Flow is known as the blockchain for NFTs. Flow allows developers to create and trade in non-fungible tokens. To solve the problem of scalability, the blockchain employs a multi-node and multi-role architecture. The nodes are divided into collection, consensus, execution and verification. Through this, the network is able to divide the various stages of validation separately to enable unparalleled speed.
Does it have a good future potential?
The NFT sector has been experiencing phenomenal growth with NFTs selling for millions. This automatically gives Flow and the likes a good future potential. Moreover, as it is positioned to solve the problem of network congestion and speed it is expected to become even more relevant in the upcoming days. The price predictions for Flow are bullish. According to the estimates of Digital Coin Price, Flow is expected to end the year with a price level of $39. However, the trajectory is expected to get steeper in the upcoming years. Per their estimates, the cryptocurrency will be operating at a price level of $91 by 2026. Price prediction.net expects the cryptocurrency to reach $168 in five years’ time.
