AMP price prediction: Will it be a noisy future for AMP?

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AMP uses collateral to ensure speed and security for users, but is it enough?

The AMP logo in front of a price graph                                 
More than 40,000 locations use the network and accept collateral-based payments – Photo: Shutterstock
                                

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As customers, we have grown used to paying for goods instantly and not having to worry about security. Blockchains are finding this a little more difficult. But Amp, via its AMP token, is using collateralisation to ensure network users do not have to compromise on either speed or security.

The collateral token only launched at the end of 2020, but it has come a long way. There are already more than 40,000 locations using the network, and its token has begun to see success.

So, is collateral the future of payment, and can we make an Amp price prediction?

What is Amp (AMP)?

There is a conundrum in the crypto world as to whether to prioritise speed or security. Security is necessary to ensure every transaction is safe, while speed is crucial to roll out a blockchain to the masses. Amp’s solution to this is collateralisation. Users can stake cryptocurrency with every transaction, to guarantee the transaction will go through.

Amp was launched by Tyler Spalding, the founder of Flexa Network. It is built on the Flexa network and has listed two main uses. Merchants can integrate Flexa and stake AMP to ensure payments are settled in real-time; meanwhile, AMP can be used by individuals for safe and speedy transfers of their own assets.

As blockchains’ userbases continue to grow, there will be a growing need for a scalable and secure platform. Investors are starting to recognise the innovative concept from Amp.

From the AMP whitepaper

The whitepaper Amp: A Digital Collateral Token to Enable Immediate Settlement of Payment Transactions was published in November 2020 and is 35 pages long.

The whitepaper states: “Within distributed tokenised financial networks, Amp serves as a medium for accruing value while aligning the incentives of all participants. This is achieved via virtuous feedback loops of increasing spending capacity coupled with a non-inflationary reward distribution. Fundamental economic models are derived to demonstrate that Amp functions as low-volatility collateral, with its value compounding exclusively as a result of the utility it provides.”

The document goes on to say: “By enabling decentralised ownership and participation in financial networks, applications built on Amp can become orders of magnitude more cost-efficient than existing systems, and help eliminate the overwhelming deadweight loss of traditional social and economic structures for financial transactions.”

AMP’s price history

The collateral token launched at $0.009 on 11 September 2020 and did not have much success in its first few months. By the end of September it had fallen to $0.006, and it dropped even lower to $0.003 on 31 October 2020.

It was not until February 2021 that AMP saw its first rally. This was partly driven by the bullish crypto market at the time, although the token did also see a listing on DeFi platform Cream Finance on 10 February. In the next three days, AMP surged to $0.03.

The token did correct slightly after that but managed to sustain above the $0.01 level. It saw its next breakout on 18 April 2021, when it raced to $0.06. AMP revealed it was seeing strong demand for the token following its listing on the liquidity platform Bancor.

May 2021 proved to be an even more exciting month for the collateral token. On 5 May, Amp announced users could borrow and lend the token on the DeFi app Yield. Two days later, Dogecoin was added as a payment method on the Flexa network. By 8 May, AMP had climbed to $0.07.

The following month, AMP saw its biggest breakout to date. The collateral token was listed on Coinbase for users to buy and sell. This fuelled the token’s all-time high of $0.12 on 16 June 2021.

AMP saw a significant correction after its new price record, and by the end of the month it had dropped back down to $0.05. It stooped even lower to the $0.04 mark in mid-July. But the token eventually saw another rally after Binance US made the coin available to its users. On 28 July 2021, the day that was announced, AMP climbed back to $0.07.

Over the next few months, the price of AMP gradually fell and by October it had dropped below $0.05. Its next breakout followed the announcement that Binance was listing the token to all its users on 23 November 2021. The token jumped to $0.07 on the day of the annoucement but eventually crashed back to $0.04.

AMP has largely been stuck in a bearish trend since, although it managed to climb slightly to $0.05 on 3 January 2022, when asset manager Greyscale announced an AMP fund.

On 31 March, Amp retweeted the following development:


However, this had very little effect on the token and the coin continued on a downtrend, hitting lows of $0.02102 on 18 April 2022, the lowest value recorded in over a year. The token fell further, trading below the $0.01 mark by mid-June. 

As of 23 June 2022, AMP is currently trading at $0.00935. The cryptocurrency has a market cap of around $400m, making it the 79th-largest crypto by that metric.

AMP price prediction

It’s a mixed set of forecasts for AMP, with some analysts expecting success and others predicting that a downfall is imminent.

On the one hand, WalletInvestor says AMP is a “bad” investment and predicts it will lose most of its value over the year. The site’s AMP price prediction for 2022 expects the coin to fall to $0.00080 by the end of the year, and show no signs of recovery from that price point.

On the other hand, DigitalCoinPrice has a much more optimistic AMP crypto price prediction. The site suggests an average value of $0.0134 in 2023 and $0.0135 in 2024. In 2025, the coin should be worth around $0.0181. Its AMP price prediction for 2030 estimates it to be worth around $0.0425.

The most bullish forecast comes from PricePrediction.netThe site says the token will reach a maximum of $0.016 in 2022, and gives an AMP price prediction for 2025 of $0.044. By 2030, PricePrediction forecasts AMP will reach $0.28, and $0.40 in 2031.

The promises of security and speed mean there is plenty of potential for Amp in the crypto space. But for its AMP token to succeed, experts say it will need to continue developing its ecosystem and showcase its practical uses.

FAQs

At the time of writing on 23 June 2022, there are 42.23 billion AMP in circulation. The token’s max supply is 92.5 billion AMP (46%).

It might be. Amp is providing a new solution to the speed vs security dilemma, and investors seem to appreciate it. The token enjoyed some success in 2021, but that success is not guaranteed to continue, so you should always do your own research before investing.

It could do. Most analysts who offer an AMP coin price prediction expect it to increase: The most bullish forecast is from PricePrediction.net, which estimates it to reach $0.40 in 2031. WalletInvestor, though, expects AMP to lose most of its value over the coming year.

Remember, cryptocurrencies are volatile and hard to predict, so you should never invest more than you can afford to lose.

It depends. Amp has created a secure and speedy network by using collateralisation to secure transactions. This solution is a unique one, so Amp has the potential to become a go-to network for transactions.

However, as the token is still in its infancy, it has a lot to prove. Remember, always research any cryptocurrency you plan on investing in thoroughly.

Further reading

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