Coin Spotlight
4 Mar 2022

WAVES in Spotlight

Deepan Datta

The Waves Protocol has been making waves with gains of over 100% in the last seven days, and it is still going strong. Launched in 2016, it is one of the few blockchain platforms to allow users to create custom tokens without having to get into the complexities of smart contract programming.

Its token, WAVES, has been one of the top-performing crypto coins in the 2021 crypto market rally, growing by almost 7 times—from $5 (₹375) to the $35 (₹1,525) level.

Key Metrics

  • Coin Rank: #49
  • Coin Market Capitalization (as of 4th March 2022): $1.99 billion
  • Coin Dominance: 0.11%
  • Coin Economics: Fixed Supply
  • Coin Total Supply: 100 million WAVES
  • Coin Circulating Supply: 100 million WAVES

Technical Analysis: WAVES Price Analysis

WAVES in spotlight
source: tradingview.com

After moving in a descending channel for a while, the token has achieved a strong breakout and is moving even higher. WAVES is currently above the 200 days Exponential Moving Average (EMA) slope, which is a very positive sign and it might provide strong support in the short term.

RSI Index is indicating an overbought market condition, and if the price of WAVES falls below the 200 days’ EMA, the 50-day EMA slope will be the next major support region.

The price of WAVES tokens has increased by over 100% in the last seven days, so it might see a bit of selling pressure on the top.

What is Waves?

It is a blockchain platform that makes it easy for developers to create and launch custom tokens and smart contracts for dApps, without the need for extensive smart contracts programming. It does this by using a script that runs in users’ accounts of the Waves blockchain. The primary function of scripts is to provide functionalities to the tokens.

So users can create and issue tokens without any programming experience.

The custom tokens in the Waves protocol are referred to as smart assets and can be bought, sold, and traded within the Waves ecosystem, which has a built-in decentralized exchange called Waves.Exchange.

Waves Consensus Mechanism

Waves use a modified version of the Proof-of-Stake (PoS) consensus algorithm called Leased Proof-of-Stake (LPoS). It allows Waves’ wallet holders to participate in the transaction validation process by leasing their tokens to the validator nodes, thus earning a fraction of block rewards.

For the transaction validation process, it uses the next-generation Waves protocol called Waves-NG. It splits the blockchain into two parts: “key blocks” and “micro blocks”. Key blocks are created by randomly selected validators by the protocol, which are automatically loaded with micro blocks, which include the transactions.

Other features of Waves Protocol

  • High throughput: The recently launched Waves NG blockchain can process up to 100 transactions per second with a 1-minute block interval for key blocks, and 3 seconds for micro blocks, giving almost instant transaction finality.
  • Low transaction fees: The transaction fee for regular transactions on Waves blockchain is 0.001 WAVES, while for invoking scripts it is 0.004 WAVES. It is comparably lower than the transaction fee on Ethereum and other leading blockchains.

Tokenomics of WAVES

WAVES has a fixed supply of 100 million tokens, out of which 80% of the supply is staked in wallets by proof-of-stake miner nodes for transaction validation and earning block rewards.

The Waves Ecosystem

The Waves ecosystem is a rapidly growing ecosystem with total value locked on the platform is touching $2 billion, according to dappradar.com.

Waves ecosystem

Using the protocol, developers have created many decentralized applications. The majority of the dApps are built around gaming and gambling platforms.

Neutrino Protocol is the most popular dApp on Waves. It allows the creation and issue of fiat-backed stablecoins and other crypto synthetic assets.

Future Growth Prospects of Waves

Waves plan to become the go-to platform for developers and millions of users by building a multi-nuclei structure on top of the existing infrastructure.

The Waves 2.0 roadmap, which lists all the future plans, includes building the Ethereum Virtual Machine (EVM)-compatible chain, enabling cross-chain communication, the Decentralized Autonomous Organization framework, new governance models, and an inter-metaverse protocol.

To implement the plans, Waves has entered into a partnership with Allbridge. It will thus be enabling cross-chain communication with multiple blockchain networks. Further, Waves Labs, an offshoot of Waves Protocol is coming up with a $150 million incubation fund to build next-generation dApps on Waves blockchain and drive mass adoption.

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.

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Deepan Datta

Content Writer

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