• Zilliqa announces the launch of Zilswap, the first DEX, based on the Uniswap idea.
  • ZIL has gained nearly 10% in the last 24 hours and may continue moving upwards.


Zilliqa is a blockchain platform based on sharded architecture and smart contracts written in the proprietary programming language, Scilla. It offers practical blockchain solutions for enterprises in various industries, including finance, digital advertising, and gaming. 

In the recent development, Zilliqa announced the launch of Zilswap, the first decentralized exchange based on the Zilliqa blockchain. It is an on-chain scalable public blockchain platform created by Switcheo and based in Singapore.

What is Zilswap and why we should care

Zilswap brings DeFi to Zilliqa's ecosystem. Basically, the platform is very similar to Uniswap as it uses a constant product automated market maker and a permissionless liquidity protocol to allow users to trade cryptocurrency assets in a decentralized and automated way. 

As the official press-release goes: 

Users can trade ZIL or ZRC tokens directly on the Zilliqa blockchain from their wallets, or add tokens they are holding to a liquidity pool to passively earn as market makers.

At the initial stages, the platform will support Singapore-Dollar (SGD) backed stablecoin, XSGD. It's okay if you've never heard of it, as it was launched only today by Xfers, the Singapore-based payment solutions provider. 

 ZIL and XSGD will be able to play yield farmers by contributing their coins to the liquidity pools and earning fees from the trades processed on the exchange. 

Uniswap clones multiply rapidly

SUSHI, Sashimi, Sake, are not just the names from the Japanese cuisine. These are the tokens of the yield farming universe. Most of the projects borrowed the idea of Uniswap. Some of them also borrowed the programming code of the pioneer project. 

A Redditor even posted a How-to for those who want to jump into the bandwagon of Uniswap's clones. His business-plan includes creating a Uniswap clone, offering users higher rewards in native tokens, and lower gas fees.  

So there's a huge opportunity for newcomers in this DEX/LP field:

  • Clone Uniswap.
  • Turn it into a DAO with a native token so that people are incentivized to offer liquidity.
  • Make sure it has rollups implemented from day 1 to enable much lower gas fees.

This is just a tiny part of the army of Uniswap's clones.

Now Zilswap joins the ranks.

ZIL/USD: The technical picture

At the time of writing, ZIL/USD is changing hands at $0.02, having gained nearly 10% in the last 24 hours. The coin sits at the 62nd place in the global cryptocurrency market rating compiled by Coinmarketcap. It has a market value of $221 million and an average daily trading volume of $86 million, ZIL is most actively traded at Binance and OKEx.

ZIL/USD daily chart

ZIL/USD bottomed at $0.013 on September 21 and has been gaining ground ever since. On a daily chart, the price broke above the downside trendline from August 11 high of $0.029. This development has improved the current technical picture and brought $0.025 into focus, which has been the highest since August 31. Once it is out of the way, the upside is likely to gain traction with the next focus on the above-mentioned top of $0.029 and psychological $0.03.

Meanwhile, on the downside, the support is created by the broken trendline at $0.019, followed by a combination of strong technical indicators, including short-term and mid-term daily EMAs (exponential moving averages). A sustainable move below this level will negate the bullish scenario and bring the recent low of $0.014 into focus. 

ZIL/USD 12-hour chart

The picture on the shorter time frame confirms the bullish scenario. The above-mentioned resistance of $0.25 is reinforced by 76.8% Fibo for the downside move from August 12 high. While the support at $0.019-$0.018 coincides with 38.2% Fibo.

To conclude: The launch of Zilswap, the first DEX on Zilliqa blockchain, might have served as a bullish catalyst for ZIL. The coin has broken above the downside trend line and focused on $0.025 that separates us from an extended recovery towards $0.03.

On the other hand, a sustainable move below $0.019-$0.018 will negate the bullish scenario and bring the recent low of $0.014 into focus.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

What Shiba Inu price needs to do to trigger a breakout

What Shiba Inu price needs to do to trigger a breakout

Shiba Inu (SHIB) price is seeing a bit of a pullback and could drop even further in search of support after bulls failed to keep their act together during the recent rally and began grasping at early profits. 

More Shiba Inu News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

More Ripple News

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Cardano price looks like it will face a massive amount of selling pressure that could lead to choppy price action. However, the fundamental side of things looks good for ADA considering the recent update regarding the highly anticipated Vasil hard fork.

More Cardano News

New sources affirm USDD is on a path to collapse like Terra’s UST

New sources affirm USDD is on a path to collapse like Terra’s UST

Tron launched its stablecoin USDD in May, at the same time as Terra’s sister tokens LUNC (formerly LUNA) and UST were imploding. The stablecoin recently detached from its $1 peg, sparking fears of a crash. 

More Terra News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP