Moonbeam (GLMR) review: the crypto project making headlines – BeinCrypto

Glimmer (GLMR), Moonbeam’s native token, is down 98% from its January all-time high. Despite this steep drop, the Moonbeam network continues to make waves.

Last week, Moonbeam (GLMR) was added to the watchlists of over 56,000 users on CoinGecko. Focus on this booming ecosystem.

Moonbeam describes himself as a “smart contract platform dedicated to apps cross-chain and combining the functionality of Ethereum and Polkadot”. Concretely, this means that developers can create their own decentralized applications (dApps) on Moonbeam and make them compatible with Ethereum.

Using the Ethereum virtual machine (EVM)which forms the backbone of the Ethereum network, developers can create smart contracts and dApps with the Solidity language. Thus, they will not need to reconfigure or rewrite codes to launch these apps on other blockchains.

Moonbeam was founded in 2019 by Derek Yoo, CEO of crypto platform PureStake, and Stefan Mehlhorn. Last year, the network launched on Polkadot as a parachain. It currently relies on a consensus mechanism of Delegated Proof of Stake (DPoS or Delegated Proof of Stake).

Parachains are independent blockchains based on Polkadot. They are linked to the relay chain (relay chain) of the network and can even be connected to other chains inside and outside the latter. Another important point, these parachains benefit from the same levels of security and scalability as the main chain of Polkadot.

In general, each blockchain network has its own characteristics and conditions. Moonbeam’s goal is to give users the ability to transact across multiple networks. So it’s a bridge (bridge) which allows users to work on both Ethereum and Polkadot.

With this interoperability, the creators of Moonbeam hope to attract developers and users who want to take advantage of the different features available on both networks.

Note also that Moonbeam has another parachain called “Moonriver”. Based on the Kusama blockchain, Moonriver allows developers to test their services before deploying them on the Moonbeam mainnet.

Where does this enthusiasm for the project come from?

Although Moonbeam is considered the “first fully functional parachain”, some believe that the project has not yet developed enough.

Lena Bondarenko, Research Analyst at EXMO, a UK-based crypto exchange, told us: “In terms of Project Moonbeam itself, the most significant event since the beginning of October has been the first governance vote”.

“In addition, an integration with the Ren protocol took place yesterday (October 12). Perhaps these events could partially affect the number of search queries. It is quite possible, however, that people are interested in Moonbeam, only as one of Polkadot’s parachains. This, because of the positive developments of this network”.

“At the end of September, the Polkadot team presented an updated roadmap end. In early 2023, they are planning a major network upgrade, which is expected to increase transaction throughput to one million transfers per second,” Ms. Bondarenko added.

“The last time the media took notice of Moonbeam was at the end of August, when it integrated the LayerZero cross-chain messaging protocol to ensure interoperability. Web3. At the time, there was also an increase in searches for GLMR among crypto aggregators at the time. That said, the price of GLMR did not rise at that time”.

Coinmarketcap however reports that “Moonbeam combines the basic feature set of Ethereum with additional options like on-chain governance, staking and cross-chain integrations”. According to the platform, Moonbeam’s compatibility with Ethereum is “unparalleled”.

Glimmer (GLMR), késako?

Glimmer, or GLMR, is the native token of the Moonbeam ecosystem. It is used to pay network gas charges and execute smart contracts. Similarly, its holders can also stake it for generate passive income.

GLMR is also used for governance. This means that it allows holders to vote on major changes to the network, including the election of board members. The token is also distributed as a reward to assemblers (collators). This, in order to preserve the integrity of the nodes and to ensure the security of the Moonbeam network.

“The main role of an assembler is to produce blocks and keep them running smoothly on the network. Then the assemblers send those blocks to the validators in the relay chain for final verification,” says Moonbeam on his website official.

As of this writing, Moonbeam’s active pool is approximately 93 assemblers. As a reward, the latter receive a fifth of annual inflation. Glimmer token holders, also known as delegators, can also receive rewards by staking a minimum of 50 GLMR. That said, only the top 300 stakers get rewards.

Glimmer’s total supply is not capped. However, the Moonbeam Foundation was launched with an offer of one billion and an annual inflation rate of 5%. Currently, more than 422 million GLMR tokens are in circulation, according to CoinGecko.

According to Moonbeam, whenever GLMR is used to pay transaction fees on smart contracts, 80% of these fees are destroyed through a burning mechanism. The remaining 20% ​​goes to the network’s treasury. The purpose of this process is to increase the value of the GLMR crypto.

GLMR Crypto Price

On January 11, right after its launch, the GLMR crypto hit a high of $19.50. Currently, it is trading at $0.44, down 1% on the day and down 98% from its all-time high. However, there remains up 75% compared to its introductory price during ICO (Initial Coin Offering) from last year.

On the other hand, the market capitalization of the crypto GLMR has lost $70M since January, dropping to $188M. The analysts of Crypto Predictions, CoinArbitrageBot and Digital Coin Price predict that the token will end the year with a price oscillating between $1.02 and $3.40.

Lena Bondarenko, the analyst interviewed by BeInCrypto, is not so optimistic.

“Over the past few months, GLMR’s course has followed that of Bitcoin. The 30-day correlation coefficient has been above 0.9 for most of the past month, indicating a very strong correlation between GLMR and BTC,” Bondarenko told BeInCrypto, before adding:

“As of October 12, the correlation has dropped to 0.68 from 0.94 the previous day. However, the latest charts show that despite its attempted recovery, the coin is falling in tandem with the broader crypto market. Therefore, I would not recommend considering these trend indicators as strong bullish signals.”

Despite everything, Moonbeam has the advantage of being a pioneer in its segment. Thus, “it has the potential to become one of the first crypto platforms of its kind,” says a report from Finder.com.

“As the first parachain within the Polkadot ecosystem, Moonbeam was able to integrate with a large number ofapps decentralized”, underlines the same source.

“While that doesn’t guarantee its success, Moonbeam is one step ahead of its younger competitors. At least for the moment”.

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Moonbeam (GLMR) review: the crypto project making headlines – BeinCrypto


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