Coin Spotlight
17 Mar 2022

Basic Attention Token (BAT) in Spotlight

Deepan Datta

This week’s spotlight is on the Basic Attention Token (BAT) and its project Brave—a project that managed so much interest, its value has grown over 15 times since its ICO launch in 2017! BAT is central to the unique crypto project that solves two of the most common problems every user of the internet encounters: unwanted advertisements, and advertisers compromising on personal data. Brave aims to create an ecosystem around digital advertisements that will have incentives for everyone—from creators to consumers.

If that sounds exciting, read on.

Key Metrics

  • Coin Rank: #69
  • Coin Market Capitalization (as of 17th March 2022): $1.26 billion
  • Coin Market Dominance: 0.07%
  • Coin Economics: Fixed supply
  • Coin Total Supply: 1.5 billion BAT
  • Coin Circulating Supply: 1.5 billion BAT

Technical Analysis: BAT Price Analysis

Outlook: Positive

Basic Attention Token
source: tradingview

On the daily chart, BAT had a bullish breakout above the 50 EMA* slope (the black line) and is currently trying to break above the highly resistive 200 EMA slope (the blue line). It will be a psychological win for buyers if BAT breaks above 200 EMA and makes a golden crossover formation.

A golden cross formation is a bullish technical pattern in which the 50 EMA slope crosses and goes above the 200 EMA slope. It indicates a trend reversal, and the price could move up from here.

In case it fails to break above the 200 EMA slope and drops down, the next major support after the 50 EMA slope is at the $0.62 level (₹49).

*Exponential Moving Average

A Brief About Basic Attention Token (BAT)

Brave browser was begun by the co-founder of Mozilla and Firefox, Brendan Eich in 2015. The primary goal of Brave browser is to improve the security, fairness, and efficiency of online digital advertising through the use of blockchain technology. BAT is the utility token.

On normal web browsers, users are forced to view the advertisements on web pages based on their past browsing history. And advertisers are at the mercy of big tech giants, who control the major part of the web traffic—sometimes driving the price of running an ad rather high. This creates two major concerns: potential privacy breaches of user data, and reduced efficiency of advertisements.

There are no set methods an advertiser can use to determine the effectiveness of online advertisements. So they have to put up with increased costs, and content creators are not appropriately incentivized either.

Brave browser is a privacy-focused web browser that changes the landscape of online digital advertising. It makes the following things possible:

  • Brave blocks ads and trackers and only lets advertisers run the ad if the users have themselves chosen to view the ad.
  • Users can also choose the ads they watch for a fee
  • Users can also tip content creators with BAT if they find the content entertaining or useful. And,
  • Advertisers are assured their ads are being seen, resulting in better price discovery for the ad spaces.

So Brave and BAT together form what is essentially a whole revenue-sharing ecosystem that has something for everyone.

Brave Micropayments Ledger

The heart of the Brave browser is the Brave Micropayments Ledger, which manages the transfer of rewards between advertisers, users, and content creators. It creates a smart contract to move funds between different stakeholders while maintaining anonymity.

BAT Tokenomics and Growth Potential

BAT is an ERC-20 token. It has a finite supply of 1.5 billion tokens, of which 200 million are set aside for the Brave team, and 300 million are reserved for the development of the platform.

Over the last few years, the Brave browser has witnessed an increased level of mainstream adoption

The total number of monthly active users on Brave is close to 49 million. And that number is more than double the 18.3 million figure of September 2020. The daily active user count stands at 16.2 million users.

Top corporate houses, like BMW, PayPal, MasterCard, Toyota, Walmart, and Amazon, are now running Brave ad campaigns and witnessing high user engagement rates. For instance, the average click-through rate (CTR) on the Brave browser is 8%, which is well above the industry average of 2%.

The global internet advertising market is expected to reach $1,089 billion by 2027, rising well above 2019’s $319 billion mark. If this happens, it will benefit Brave browser directly of course as more corporate companies find ways to reach out to users effectively.

For now, Brave browser seems to be in the right place at the right time, taking advantage of both growths of global internet advertising and the Web 3.0 ecosystem.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.


Deepan Datta

Content Writer

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