NKN price prediction: Strong fundamentals, dull market performance

The New Kind of Network (NKN) has an immense community behind it. Why isn’t the token taking off?

NKN logo against blue code – Photo: Shutterstock                                 
NKN boasts one of the world’s largest network of node validators. Photo: Shutterstock
                                

Contents

What does NKN power?

NKN is the native cryptocurrency of the wider NKN – or New Kind of Network – blockchain protocol, the Chinese-based operation which is one of the largest in the world by node count.

NKN’s protocol, based on Cellular Automata (CA) mathematics, allows the sale of usable bandwidth across the world, which NKN passes on to its business partners. Any individual with bandwidth they are not using can sell it, via NKN, to people seeking as much bandwidth as possible. The nodes that supply the bandwidth are rewarded through a Proof-of-Work (PoW) mechanism, not dissimilar to Bitcoin, despite the rewards being considerably lower.

At its core, NKN is a Content Delivery Network (CDN), which is far from a new concept. Any major Web application, whether that is Facebook or Netflix, employs a CDN in order to meet customer demand.

Where NKN diverges is in its decentralised, trustless design, which is at the heart of blockchain philosophy.

There is a tonne of fascinating things going on under NKN’s hood, which you can check out in our ultimate guide

NKN: A few key figures

In terms of allocation, 35% of NKN tokens are reserved for purchasers on the markets, 18% is distributed to founders and developers and 17% is reserved for strategic investment in the project.

NKN uses a mining system to verify block transactions, where 30% of all NKN coins are reserved for mining rewards, with the amount decreasing per year as a deflationary measure.

NKN performed an initial coin offering (ICO) on 19 April 2018, reaching its $12.6m total hard cap. The coin was priced at $0.13 at the ICO, but the token is currently trading 25% below that price.

At the time of writing, the NKN cryptocurrency is valued at $0.0974. The circulating supply is 700 million, against a maximum supply of one billion, making for a market capitalisation of $68m. NKN is ranked number 293 on the market cap table.

Trading volume is currently at 10% against market cap. 

What is the price history?

NKN enjoyed an unprecedented bull run in early April 2021 as the wider cryptocurrency market went into overdrive. Aided by NKN’s listing on Coinbase, the token hit an all-time high of $1.48 on 9 April, according to data from CoinMarketCap

Of course, these figures were very short lived and the market went into a correction as NKN was dragged down below the $0.30 line. In early November 2021, we once again saw an ascending channel formation, before the downtrend that we are currently experiencing. Moving into 2022, the token sank further, exacerbated by a long-running bear market and multiple flash crashes. The token once again fell below its launch price on 8 May 2022. By 15 June, the token was trading at $0.06227, a new 15-month low.  

However, since that point the token has gained some momentum but remains well below the ICO launch price, trading at $0.0974 at the time of writing. How might this affect an NKN coin price prediction?

What the forecasters say

The online forecaster WalletInvestor presents an NKN price prediction for 2022 which suggests a year-end value of $0.00596, down over 90% from the current trading price. The website states: “NKN is a bad long-term (one-year) investment”, and consequently, sentiment is bearish.

The forecasters at DigitalCoinPrice have an NKN price prediction for 2025 of $0.19; an ROI of twice the current price, which is pretty lacklustre compared to other altcoin offerings. The NKN price prediction for 2030 is $0.44.

Gov.Capital is more optimistic, with a 12-month forecast of $0.39, and a five-year forecast of $2.36. 

All in all, NKN is not performing amazingly, with forecasters’ general NKN price prediction expecting modest returns and mixed signals coming from the chart. No forecasters expect the token to trade near its previous all-time high. 

However, there is no denying the quality of NKN’s fundamentals. Its services are robust and a massive community of miners keeps the network secure. If NKN can bring some news to the table to excite investors, it is possible that we will see a better token performance in the months to come.

FAQs

Forecasters are not overly hyped about NKN’s long-term prospects. That said, be sure to research the innovative fundamentals and make an assessment. Whatever you decide to do, make sure to never invest more than you can afford to lose.

NKN could go up, if only to a moderate degree. Given the volatility of crypto assets, there is no guarantee; please keep that in mind should you choose to invest. No NKN crypto prediction expects the token to trade near its all-time high within the decade.

That is totally up to you! Recent performance and forecaster predictions are not amazing, despite solid fundamentals and an exciting underlying product. Make sure to conduct extensive due diligence if you intend to invest.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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