Zilliqa’s price plunged to its lowest point since March 26 this year as demand for the token weakened. The coin is trading near $0.676, roughly 70% below its peak earlier this year. Consequently, Zilliqa’s market capitalization has fallen to about $972 million, placing it as the 91st largest cryptocurrency by market value.
Zilliqa demand has waned
Zilliqa is a blockchain platform designed for developers to build decentralized applications (dApps). It is best known for its implementation of sharding, a technique that partitions the blockchain into smaller segments called shards to increase throughput and transaction speed.
Developers have chosen Zilliqa for projects that require high speed, security, and reliability. Notable projects that have used the network include Atomic Wallet, Autofarm, and Carbon. Despite these integrations, most applications on Zilliqa remain relatively modest in scale compared with leading smart contract platforms.
Data from analytics platforms show mixed figures for the ecosystem’s total value locked (TVL). DeFi Llama reports the TVL on Zilliqa has fallen to around $20 million, which is minimal when compared to platforms like Ethereum with TVLs exceeding $100 billion. Zilliqa’s own statistics present a higher figure—approximately $363 million—highlighting discrepancies between different data sources.
As competition in the blockchain sector intensified, Zilliqa struggled to maintain its earlier momentum. The project slipped in rankings among the largest cryptocurrencies and briefly fell out of the top 100 as interest declined.
Zilliqa attracted attention in March after announcing a metaverse initiative in partnership with Metopolis, a move that coincided with a price surge. At that time, the token reached a high around $0.23 and climbed into the top 50 coins by market cap.
Since then, the initial excitement has cooled and on-chain activity has diminished. Key activity indicators—such as the number of deployed smart contracts—have declined from their March peaks, and the rate of new addresses joining the network has slowed.
Zilliqa price outlook
On shorter-term charts, ZIL has been in a clear downtrend in recent weeks. The decline accelerated after breaking a critical support near $0.1010, a level that previously acted as a floor in mid-April. The price has moved below both the 25-day and 50-day moving averages, signaling sustained selling pressure.
Momentum indicators also show bearish conditions. The Stochastic Oscillator sits below oversold thresholds, and the Relative Strength Index (RSI) is in oversold territory as well. These signals suggest downward momentum remains intact, and bears could pressure the price toward the next significant support around $0.05 in May.
Traders should combine technical analysis with up-to-date on-chain metrics and project developments before making decisions. Monitoring network activity, partnerships, and any upgrades to the Zilliqa ecosystem can provide context that may influence future price movements.