- The Astar community concluded voting on the token burn proposal on the 2nd of June.
Before mid-June’s price struggles, ASTR last traded below $0.070 at the end of November.
As a seasoned crypto investor with a keen interest in the Polkadot ecosystem, I’ve been closely monitoring the developments surrounding Astar Network (ASTR). The recent news of the community’s approval for the token burn proposal, which will remove 350 million ASTR tokens from circulation, is noteworthy. This decision comes after the Polkadot foundation announced the phasing out of parachain auctions and replacement with Agile Coretime or Bulk Coretime.
At the current moment, Astar (ASTR) was experiencing a decline of 6.63%, synchronizing with the overall crypto market trend, due to growing concerns over an unfavorable U.S. inflation forecast.
Yesterday, the Astar community made the decision to destroy 350 million ASTR tokens, which equates to approximately 5% of the token’s initial supply. This action came following the most recent price change.
ASTR token burn execution timeline
The Astar Foundation saved some tokens for the Polkadot auction process, which enables projects to win slots on the Polkadot [DOT] relay chain as part of the parachain selection.
As a blockchain analyst, I would explain it this way: In the context of the Polkadot ecosystem, I submit bids using DOT tokens in the candle auction mechanism to secure a connection to a parachain slot for a specified lease term.
In November 2023, Polkadot made an announcement that they planned to discontinue their parachain auction system and introduce either Agile Coretime or Bulk Coretime in its place.
As an analyst, I would rephrase that statement as follows: Based on the recent adjustments, I recommend that the Astar Foundation consider taking tokens out of circulation as part of a plan to enhance the economics of the ASTR token.
The community treasury will keep 74 million ASTR as rewards from the initial token distribution, which will later be utilized to finance various projects.
Maarten Henskens, the head of the Astar Foundation, announced that the proposal has been approved and will move on to the implementation stage. He further mentioned that the token burn process is set to begin by the end of this week.
ASTR/USDT technical analysis
News of the vote conclusion briefly catapulted ASTR price to an intraday high of $0.0791.
As a crypto investor, I’ve noticed an intriguing surge in the trading activity of ASTR. According to CoinMarketCap data, the 24-hour trading volume reached a peak of over $78 million on Tuesday, marking a significant increase from the previous day’s figure of approximately $20 million.
Some cryptocurrency exchanges, such as Binance (BNB), saw ASTR reach a peak price of $0.80 at one point. However, its value subsequently declined and it began incurring losses.
Since its recent setback, ASTR has been among the poorest performing cryptocurrencies today, dropping nearly 7% to reach a value of $0.0705 against the US Dollar at this moment. The ASTR/USDT price chart indicates that the token experienced difficulties in the past fortnight.
As a researcher studying the cryptocurrency market over the past few days, I’ve observed that the price of ASTR/USDT dipped below the $0.069 mark during the weekend. This downturn follows two weeks of challenges for the token as it failed to regain its footing above the $0.075 level since June 17.
On the ASTR/USDT 4-hour chart, it was noticeable that the price of ASTR had found a reliable support level around $0.063 while making an effort to break free from its recent price range confinement.
In the hourly chart, the value of ASTR remained beneath the $0.0732 mark, which represents the 23.6% minor Fibonacci retracement level.
Confident investors should consider setting firm buying points around the more substantial 0.382 Fibonacci mark at $0.0745 during their journey towards reaching the pivotal 0.618 Fibonacci point at $0.0767. This area is predicted to be a potential turning point for price direction.
Near the $0.0782 mark, which represents a significant Fibonacci level at 0.786, there’s a strong likelihood that further potential gains will be thoroughly examined.
On the hourly chart earlier this week, ASTR displayed indications of being overbought. The Relative Strength Index (RSI) reading for ASTR reached more than 70 on July 1st.
The Relative Strength Index (RSI) has dipped below the 50 mark, now at 34.98, due to the recent crypto market downturn in the past 24 hours. A RSI reading under 30 suggests favorable conditions for entering short-term trades.
Ecosystem growth
Astar Network has continued advancing its ecosystem, recently launching Astar zkEVM.
As a researcher studying the latest developments in blockchain technology, I’m excited to share that the L2 scaling solution has made history by being the first to adopt Polygon‘s innovative tech, AggLayer. By integrating Polygon’s zero-knowledge technology into our L2 solution, we aim to significantly enhance its functionality and efficiency.
Read More
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- SQR PREDICTION. SQR cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- QUINT PREDICTION. QUINT cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
2024-07-04 08:08