AMP (AMP-USD) is a blockchain that can act as a mechanism or collateral to help make cryptocurrency transactions go faster. As its transaction solution gains popularity, AMP crypto could begin to recuperate out of its funk right now.
For the past three months or so, AMP crypto has been “forming a base,” as they say in trading circles. This is a polite saying that the cryptocurrency has dropped and is near a low point.
For example, after reaching a peak of over 10.9 cents in mid-June 2021, AMP crypto has drifted down to almost three cents (3.2 cents) as of Feb. 17, 2022. That represents a dramatic loss of over 70% in over seven months.
This is not good. This kind of volatility will not make this crypto popular with institutions. However, even at today’s depressed price, the cryptocurrency has a market valuation of over $1 billion (actually $1.357 billion), according to Coinmarketcap. At least by that standard, AMP crypto is not a “nan0-cap,” fly-by-night cryptocurrency.
AMP’s Standout Features That Could Push It Higher
As Coindesk explains, Amp can have its tokens be collateral for transactions on other crypto networks, like Bitcoin (BTC-USD) and Ethereum (ETH-USD). It provides “verifiable collateralization through a system of collateral partitions and collateral managers,” according to Coinmarketcap.
According to its original announcement on Medium, AMP started in September 2020 and is built on the Ethereum platform. It works as a staking platform to allow “instant and verifiable collateralization of any type of value transfer.”
Its purpose is to improve the speed and security of asset transactions across different financial use cases. These include payments, exchange, lending, remittance, and more.
Amp crypto holders can stake their AMP as a guarantee or collateral for a transaction (and receive a fee). The crypto can be liquidated as a collateral give-up if a transaction takes too long or is unsuccessful. In that way, the receiving party still gets paid from the collateral for the transaction.
AMP was built through close collaboration and partnership between Flexa, a payments company, and ConsenSys, a Web3 developer. Web3 refers to a decentralized internet system or platform built on a public and decentralized blockchain ledger technology. It is slowly gaining in popularity.
Flexa is singing up new partnerships all the time, according to its Twitter (NASDAQ: TWTR) site. For example, Flexa uses AMP crypto as its primary collateral to secure all transactions on its digital payments network. It is accepted in over 41,000 locations throughout this network.
Where This Leaves Investors in AMP Crypto
This platform is just getting off the ground. It could take a good while before its features, operations, and popularity grow. But investors in AMP crypto know that they are getting in on the ground floor here, especially if the AMP solution takes off.
However, given the deterioration in the blockchain price in the past six or seven months, AMP crypto has a way to go before investors overlook its volatility.
The vast ups and downs in the crypto price serve to shake out short-term investors. But, in another sense, the volatility has a purpose. It alerts potential investors that there could be good things in store for the crypto in the long run.
Another primary reason that AMP crypto could do well, in the long run, is the fixed supply of its cryptocurrency. As The Motley Fool points out, this fixed supply, like Bitcoin, will never issue more than a set number of tokens.
So, long-term investors in this space will now want to pay attention to AMP crypto. As it is on its knees, down over 70% from its peak, it could provide an excellent entry point for those willing to hold the crypto for the long term.
Source: mrhake.medium.com
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