You might not have heard of Electroneum (ETN). Or, you might have heard about it when it was launched a few years ago. Electroneum is a minor crypto token currently ranked 225 in Coinmarketcap’s list for market capitalization. It has been heavily mined and despite having a 21 billion ETN supply limit, over 75% of tokens have already been mined.
What is Electroneum?
Electroneum is a Bitcoin-style blockchain project that aimed to change the way cryptocurrencies are mined. Besides, it ensures that third-world users have equal access to mining as their first-world counterparts. One of the biggest barriers to crypto mining is the upfront cost of equipment. So, the developers decided to create a token that could be mined using a smartphone as a solution.
This immediately gained a lot of attention making Electroneum highly successful at launch. It then became a hyped coin and hit an all-time high price in January 2018 — $0.2. The following months were bleak, and the price crashed.
Another problem that Electroneum encountered was to do with mining. Normally, demand for a cryptocurrency outstrips the rate at which the token can be mined. This is especially noticeable with Bitcoin. The coin is difficult to mine and the demand is very high. This pushes the price of Bitcoin up considerably.
With Electroneum the opposite was true. Although it was in high demand at one point, mining was so easy that it outpaced even the high demand. This effectively put a ceiling on the price of the coin that it couldn’t break. Eventually, the ceiling became unbearable, and the price collapsed.
The reason for this price crash was that the platform had a design flaw. It couldn’t easily be patched or fixed by the development team. Basically, the more users transacted on Electroneum, the greater the delay in the blockchain processing was.
This is actually a pretty common problem with Bitcoin. During high-volume days, the Bitcoin blockchain slows down considerably as transactions queue up and cause a backlog. The difference is that Bitcoin is highly valuable. Users essentially put up with the flaws, because they want to get the currency. Electroneum users were not so patient, mainly because Electroneum has little utility.
By May 2020, the price of Electroneum hit its all-time low of a fraction of a cent. It was worthless for all intents and purposes. The good thing about having no value though is that the price can only really improve from nothing. This seems to have been the case at least with Electroneum, which is now showing signs of recovery, albeit tiny signs.
Electroneum Price Today
Today, the market rate for Electroneum is around $0.02. It is also trending upwards at the moment, but the trajectory isn’t yet 100% clear. The price is unstable. Because of the positive trend though, experts feel like Electroneum could be a resurgent coin. It could bounce back to the levels that may be equal to previous highs.
This has created a recent surge in exchange activity for BTC to ETN transactions.
It is fair to say that Electroneum is doing a lot better today than it was a year ago. It is rewarding investors who bought the coin this time last year. The increase represents about 200% between 2020 and 2021, showing that a year can make all the difference. The big question is can that performance be replicated over the next year?
The answer to that question is probably not. The coin has never been that high over the course of its life, and the truth is that the coin will still be mined heavily, which will again depress the value.
Given its favourable reviews at the moment, the price might double in the next year. But even this is a big ask. Another risk is that as more people begin using the Electroneum blockchain again (which is currently gathering dust), the more it gets backed-up and users will likely lose patience.
It looks to be a challenging year for Electroneum and it could quite possibly be the year that makes or breaks the project once and for all.