ZIL holders watch EVM implementation on Zilliqa closely, here’s what to expect

Zilliqa, a high-throughput blockchain is set to activate its Ethereum Virtual Machine (EVM) compatibility on Tuesday. Through this update, the project will enable several key features like faster transaction processing, native transfer of tokens without conversion and higher decentralization. 

ZIL price yielded nearly 5% losses for holders overnight, it remains to be seen whether the EVM upgrade acts as a catalyst for the token’s recovery. 

Also read: Meme coin traders hunt for the next PEPE, ape into low market cap projects for gains

Zilliqa gears up for mainnet launch of EVM compatibility

Zilliqa development team has announced the arrival of Zilliqa 2.0 with the upcoming EVM upgrade on Tuesday. The upgrade will activate the blockchain’s compatibility with EVM and this will allow traders to transfer tokens without converting them, cutting out complex processes. 

According to ZIL’s official blog post, EVM compatibility will make it easier for traders transferring Non Fungible Tokens (NFTs) between the EVM and Scilla interfaces. Currently, transactions on Zilliqa take up to two minutes and the upgrade could cut waiting time from two to five seconds. 

The team is looking at reducing downtime for network upgrades and boosting the user experience for both developers and users. 

How will ZIL price react?

ZIL price wiped out its recent gains from the past two weeks. The token has yielded nearly 5% losses for holders overnight. ZIL holders are closely watching the EVM compatibility upgrade to determine whether it can act as a bullish catalyst for the token’s price. 

Interestingly, there was a notable decline in the social dominance of ZIL, implying that the token is not a “topic of interest” or being actively discussed on social media platforms. 

ZIL social dominance v. price

If social dominance nosedives lower, the EVM upgrade could turn out to be a non-event for ZIL and the token could continue to bleed. Crypto experts at World of Charts believe ZIL is prepared to break out of its multi-month downtrend and the asset is set to hit a bullish target of $0.085, as seen in the chart below. 

ZIL price needs to close above the trendline on the one-day price chart, to validate the expert’s bullish thesis. 

ZIL/USDT 1D price chart 

Failure to breach the trendline could invalidate the bullish thesis and result in further consolidation in ZIL. The bullish target of $0.085 was previously breached between April and May 2022. For evidence, traders could identify a breakout bar to confirm the thesis. Three green bars in succession could help affirm the bullish breakout theory for ZIL price. 

Akash Girimath, lead analyst at FXStreet is bullish on ZIL and predicts 3.5x gains for holders. Find out more here.