API3 price prediction: What’s next for the Web3 crypto?
API3, a crypto that is paving the way for Web3, has lost 50% since May 2021
Contents
- What is API3 (API3)?
- How does API3 work?
- API3 founders
- API3 coin performance
- API3 coin price prediction: Expert opinion
- FAQs
Crypto enthusiasts constantly proclaim that “Web3 is coming”. Millions of dollars have been invested in the infrastructure upon which Web3 will apparently be built, and plenty of crypto start-ups have emerged, all attempting to become frontrunners in the Web3 movement.
API3, which launched in 2020, is one such start-up. The platform, through a range of technological solutions, claims to have solved issues related to smart contracts’ ability to access to dependable real-time, off-chain data.
On a mission to create and scale-up decentralised versions of APIs (application programming interfaces), API3 has experienced extensive volatility over the past year. Despite performing dismally recently, is a recovery on the cards? What is the latest API3 price prediction?
Before looking at forecasts, let’s take a quick overview of the coin.
What is API3 (API3)?
API3 claims to have developed reliable first-party oracles, which iron out the problems that emerge from legacy third-party oracles. But what are oracles? Before we answer that, let’s first look at what APIs are.
An API is a piece of software that enables two apps to ‘talk’ to each other. For example, if you use an app on your phone, it connects to the internet, transferring data to the server. The server interprets the information, performs some actions and sends it back to the phone. The app then presents this information in a readable way.
APIs are basically messengers of information. Just as legacy technology requires messengers, so do blockchains and so, specifically, do smart contracts. Smart contracts require blockchains to have external data feeds that are efficient, reliable and secure. Oracles were developed to provide blockchains with just such feeds.
The more blockchains scale up, the greater the requirement for accurate data. For example, in the case of smart contracts – computer programs that execute certain actions upon specific conditions being met – oracles retrieve and verify external data and feed it into the blockchains. That data could include anything from weather reports to crypto prices.
Oracles must interact with web APIs in order to get this information. Oracles then reconstitute the information to make it consumable by the blockchain.
There are several issues which render legacy third-party oracles inadequate, not least of which is that, because they sit between APIs and the blockchain, they add considerable extra expense and centralisation. Given that smart contracts are meant to be trustless, there is also a clear issue in having to rely upon third parties for information which will then be fed into the system.
Oracles also have a lot of power, as they determine how and under what terms smart contracts are executed. This is where API3 comes in. The platform claims to solve these issues by removing third parties, streamlining the flow between API and smart contract.
API3 is managed as a DAO (decentralised autonomous organisation), according to the website, eradicating vulnerabilities which could emerge as a result of having a single point of failure.
How does API3 work?
API3 says that first-party oracles offer “more security and efficiency and data-source transparency” than problematic legacy third-party oracles.
Beacons, according to the API3 website, are first-party data feeds that enable developers to connect crypto applications to constantly updating streams of off-chain data.
API3 founders
The founders of API3 include Heikki Vanttinen, Burak Benligiray and Sasa Milic.
Vanttinen, originally from Finland but based in Portugal, studied at Ohio Northern University before gaining a degree in international business at Aalto University in Finland. After graduating, he worked in marketing for a range of companies including Aava & Bang, Oddshot, Equilibrium Labs and Zippie. Before founding API3, Vanttinen launched CLC Group, a blockchain lab focused on the development of smart contract solutions.
Benligiray completed a BSc in electrical and electronics engineering at the Middle East Technical University in Ankara. He subsequently completed an MSc in the same field from Anadolu University in Eskişehir, Turkey, before completing a PhD from Eskişehir Technical University in electronic engineering. He subsequently worked as a university research assistant before becoming chief technical officer for CLC Group.
Milic co-authored the API3 white paper. She completed a PhD in computer science at the University of Toronto. Milic worked as a research assistant for a variety of universities, before working as a software engineer for Facebook in New York. Since co-authoring the API3 white paper, Milic has become a crypto and blockchain researcher.
How does this information impact an API3 price prediction for 2022? Or even an API3 price prediction for 2030?
Before looking at forecasts, let’s do a quick review of the coin’s performance to date
API3 coin performance
The API3 coin has experienced significant volatility since its release. After launch, the coin rose from $2.1143 on 28 December 2020 to $7.2727 on 13 February 2021. It subsequently dropped to $3.7462 on 28 February 2021, before rising to $9.4207 on 15 April 2021.
The coin soon slid to $1.9468 on 22 June 2021, before rising again to $6.3175 on 4 September. On 29 September, the coin corrected at $3.017 before rising to $6.585 on 7 November 2021. Volatility continued through the remainder of 2021.
On 2 February 2022 the coin stood at $3.3864, rising to $5.08 by 17 February. The coin continued to surge, reaching highs of $9.2769 on 19 February. The coin then slid to lows of $5.2124 on 22 February, before rising again to $7.2701 on 28 February. Despite spiking to $8.294 on 1 March, the coin subsequently fell to $4.44 by 16 March 2022.
Despite recovering later in the month, rising to a high of $6.03 by 5 April 2022, the coin has since fallen. The token hit $4.23 on 19 April, before falling to $1.24 by 12 May.
The token, has, however risen slightly since then, standing at just over $2 as of 23 May.
There is a total supply of 110.98 million API3 coins and there are 36.9 million API3 coins currently in circulation. API3 has a market capitalisation of $74.8m, according to CoinMarketCap, and is ranked at 342 by that metric.
API3 coin price prediction: Expert opinion
Remember, when looking at predictions, that while they can be helpful as an indicator of which direction the price may move in, they should be viewed as possibilities rather than absolutes. This is especially true of longer-term forecasts, which can sometimes be completely off the mark, thanks to the inherent volatility of the crypto market and the many unknowns which could impact future prices.
With all that in mind, let’s look at some API3 price predictions.
WalletInvestor, in a fairly dismal API3 crypto price prediction, thinks it could rise to $2.06 in a year’s time before increasing to $2.84 in five years’ time.
Gov Capital, in a bullish forecast, estimates the API3 price prediction for 2023 to be $8.81. In five years’ time, the platform thinks API3 will be worth $48.17.
DigitalCoinPrice thinks that API3 could average $2.69 in 2022 before increasing to $3.02 in 2023. The website’s API3 price prediction for 2025 stands at $3.88.
FAQs
How many API3 coins are there?
There is a total supply of 110.98 million API3 coins and there are 36.9 million API3 coins currently in circulation.
Is API3 a good investment?
Potentially. Many variables could affect the coin’s future performance, including mainstream uptake of crypto, competition from other cryptos offering a similar product and the effectiveness of the technology.
Remember that the crypto market is highly volatile, and that the price of any token or coin can go down as well as up.
Will API3 go up?
It might. Some experts think it will go up by a lot, while others forecast the coin will only make very modest gains.
It is always worth remembering that forecasts, especially long-term ones, should be viewed as indicators rather than absolutes.
Should I invest in API3?
That is for you to decide: investing is a highly personal endeavour. Do your own research and try to keep up-to-date on any developments within the API3 ecoystem that could boost or harm its prospects.
Remember, investing can be risky and it is important never to invest more money than you can afford to lose.
