Home Individuals Market Analysis and Trends
609

Immutable X Price Prediction – Scaling NFTs on Ethereum

AnalysisPrice predictions
By Dimitris Tsapis
• Updated:
Immutable X Price Prediction – Scaling NFTs on Ethereum

The most notable tech giants like Facebook and Microsoft are pushing towards a real-world implementation of the metaverse. It’s gradually becoming obvious that blockchain technology, and NFTs in particular, will play a pivotal role in this niche.

However, NFT transactions are still experiencing excruciatingly high fees and many consider them environmentally harmful.

Fortunately, there is some light at the end of the tunnel!

In this article, we analyse the first scaling solution specific to NFTs on the Ethereum blockchain – Immutable X.

We also provide you with the most accurate Immutable X price prediction possible. To achieve this, we break down the platform’s tech and fundamentals and combine these with sound technical analysis. At the end of this IMX price prediction, you should have a good idea of whether you should consider these tokens as a short, mid, or long-term investment.

But let’s begin with some basics; What is Immutable X and how does it work?

What Is Immutable X?

the first layer 2 for nfts on ethereum

Immutable X is the first Layer 2 scaling solution for Ethereum that is entirely dedicated to NFTs. It aims to bring users and developers the ability to mint and transfer NFTs at near-zero costs. An added bonus is the unprecedented speeds of up to 9000 transactions per second. Moreover, it claims carbon-neutrality, as it purchases carbon credits on the voluntary market to offset any gas consumed on Ethereum.

Created as recently as April 2021, it’s one of the fastest-rising blockchain projects in the space. Just a couple of months after the token public sale in September 2021, Immutable X has already secured a comfortable place in the top 100 coins by market cap.

The project’s goal is to provide game developers and artists with a streamlined platform for deploying NFTs. All of this without reducing its speed or increasing the transaction costs. To this end, the team has partnered with Starkware and adapted their StarkEx protocol to fit their specific NFT needs.

To provide limitless scaling, Immutable X uses Validium ZK-Proofs and ZK-rollups to execute transactions outside of the Ethereum blockchain. More importantly, however, it streamlines the creation of smart contracts by abstracting the StarkEx protocol.

Consequently, Immutable X provides user-friendly API tools that developers without blockchain knowledge can use to mint and program their NFTs. This way, they can focus on providing the best gaming experience without having to learn Solidity or complicated blockchain logic for integrating dApps into games.

How Does Immutable X Work?

The Immutable X relies on various puzzle pieces that connect with each other to build a complete product:

  • APIs – which allow anyone to easily create NFTs, destroy them, or update their metadata. This abstraction API layer is a key component to attracting AAA game publishers, as it doesn’t require advanced knowledge in Ethereum’s or Immutable X’s architecture.
  • ZK- Rollups – which allow computations to be executed off-chain and provide the much-needed scalability.
  • Link UI – which connects users to the Immutable X protocol, using their Layer 1 wallet. Through Link, users can access all the functionalities of Immutable X, without having to switch networks, like other Layer 2 scaling solutions require.
  • Shared order book – which allows developers to create functioning NFT marketplaces without backend programming requirements.

As you can see, every facet of Immutable X’s framework was created to provide the most frictionless way to mint and handle NFTs.

Why does Immutable X use rollups?

The biggest value of the Immutable X project lies in its capacity to provide mass scaling using rollups. The team opted for ZK-Rollups/Validium scaling instead of more common mechanisms like optimistic rollups or sidechains for a couple of different reasons:

  • Sidechains are much less secure than the underlying main blockchain and can be the subject of 51% attacks. Moreover, they are much more centralized, as they often rely on a limited number of validators for transaction confirmation.
  • Optimistic rollups are a great scaling solution but have the caveat of requiring long periods for withdrawals (1-2 weeks). While developers can alleviate this issue for fungible ERC-20 tokens, this isn’t the case for NFTs.

As a result, Immutable X uses ZK-STARKs (Zero-Knowledge Scalable Transparent ARguments of Knowledge) for scaling. This cryptographic proof technology enables users to perform computations with a third party without the information being revealed to the third party.

The advantage over previously-popular ZK-SNARKs is that STARKs do not require a trusted third party at the moment of genesis of the chain. To make this Immutable X price prediction more relevant, let’s see how all of this is put into place. Additionally, you can check out the video below for a more complete explanation of rollups.

What is the Volition Model?

What is the Volition Model

Immutable X wanted to provide maximum flexibility to developers and users. To achieve this, the team provides a protocol with two different scaling solutions that users can switch to and fro depending on their needs.

  • ZK-Rollups compute batches of transactions off-chain, then post proof of this computation on the main chain. They use on-chain data and provide the advantage of no delays for transfers between the Layer 1 and Layer 2 protocols. However, they also require a linear increase in the gas fees, which can have a significant impact when minting large amounts of NFTs.
  • Validium ZK-Proofs also execute transactions off-chain, with the difference that they equally rely on off-chain data. This allows them to provide zero delays for withdrawals, as well as no increase in gas. The caveat is that off-chain data for generating proof needs to remain available at all times and requires custodianship from trusted sources.

In either case, transaction costs and speeds improve drastically compared to current solutions. The Volition model adds the bonus liberty to both game developers and retail users to choose the best option for their usage.

Immutable X Price Prediction – Token Usage and Economics

The Immutable X economy relies entirely on the IMX token, which is the centrepiece of our Immutable X price prediction. IMX is an ERC- 20 token, with a maximum supply of 2 billion tokens. Currently, it is trading at around $5, which is a 3000% increase from its $0.15 price from its September 2021 ICO.

The IMX crypto is a utility token that has multiple uses within the Immutable X ecosystem:

  • Paying 20% of the protocol fees, which are sent to a staking rewards pool. To make the process more streamlined for users that don’t own IMX, the protocol purchases IMX on their behalf with their ETH and distributes funds accordingly.
  • Staking for rewards. For users that have traded on the platform, or owned NFTs in the last 30 days, staking is automatically activated.
  • Governance of the protocol. Users can vote with their IMX on various public proposals for the improvement and further direction of the protocol.

Immutable X Price Prediction – Token Usage and Economics

Moreover, every user that contributes to the network or uses its functionalities will be awarded points for their effort. These points will be later translated into additional IMX rewards.

Immutable X Ecosystem

Some of the most promising play-to-earn games have announced their partnerships with the protocol such as

Immutable X is characterized by a growing ecosystem of applications that make use of its protocol. Some of the most promising play-to-earn games have announced their partnerships with the protocol such as:

  • Gods Unchained, a collecting card game where users battle each other with their NFT card decks. With more than000 active players daily, it’s one of the most successful blockchain games at the moment.
  • Illuvium, an upcoming play-to-earn RPG that is creating some serious buzz in the community.
  • Guild of Guardians, a team-based RPG where players earn rewards and can sell their characters on the marketplace.
  • Ember Sword, an MMORPG that includes virtual land plots similar to metaverses like Decentraland and The Sandbox.

Additionally, Immutable X proposes its own NFT marketplace, where users can purchase any asset created by their partners.

Immutable X NFT marketplace

Immutable X in the News

This Illuvium X price prediction would be incomplete if we didn’t talk about some recent crucial partnerships of the platform. These are vital to the adoption of the protocol and can impact its growth quite considerably.

  • Just after its launch, Immutable X partnered with TikTok, one of the most influential social media apps of the current decade.

  • In October 2021, the ESL Pro League announced its partnership with Immutable X for minting CS:GO NFTs. This global organization includes 34 teams that compete seasonally and draws an average of 130 thousand viewers per event.

  • In December 2021, the NFT platform App announced they would be fully migrating their protocol onto Immutable X in their attempt to thwart the issue of rising gas fees.

By lowering the barrier of entry to NFTs, Immutable X has managed to produce an impressive lineup of partnerships in just a few months. As the protocol gets more recognized, we could see it become the go-to platform for NFTs. This alone lets us take a bullish stance in our Immutable X price prediction.

Immutable X Price Prediction – Historical Price Action

Before we delve into our Immutable X forecast, let’s have a quick overview of its price action since it hit the markets in late September 2021.

Immutable X Price Prediction – Historical Price Action

Right after its release, IMX took a quick plunge to $3. However, this downtrend was quickly reversed by the metaverse craze that swept the markets. Quickly after Facebook announced its plans to partake in the implementation of its version of the metaverse, NFT-related coins skyrocketed, and IMX took no exception.

The price quickly rallied to $7, where it met some market exhaustion. After a short retracement, another pump brought it to a new all-time high of $9.4 per token. That said, the general bearish sentiment in the markets that began in late November 2021 reversed this trend into a downwards momentum. The price has since retraced over 50% and is now consolidating around the $4.5 level.

Immutable X Price Prediction 2022

Considering that Immutable X is only a few months old, it doesn’t give us a lot of historical price action to work with. Consequently, we can’t rely on established support or resistance zones, but instead, need to use sentiment indicators like the Fibonacci retracement tool.

Immutable X Price Prediction 2022

That said, we remain confident that the project has still a lot of room to grow, which leads to the following Immutable X price prediction 2022.

Considering the bearish sentiment in the markets lately, we can expect IMX to continue its retracement until the end of 2021. Candles are forming a descending triangle, which signals a bearish continuation of the trend. This could result in the price reaching as low as $3.5 by the end of the year.

However, its strong fundamentals hint towards a swift recovery to its previous all-time high of $9.5. As more partnerships are announced and the bull market resumes, we can hope to see IMX go past this level by the end of the spring of 2022.

With more exchanges listing the token, this bullish momentum should be conserved, allowing IMX to reach $24 in 2022. And by the end of that year, we expect it to trade between $15 and $20.

Immutable X Token Price Prediction 2025

To provide you with an accurate long-term Immutable X price prediction for 2025 we need to take the following factors into consideration:

  • Another bear market could happen during 2023-2024, which could result in IMX retracing as low as $10 during this period.
  • Following the next Bitcoin halving in 2024, we can expect another bull market by 2025. This could mean that projects like Immutable X will finally return to their previous all-time highs.
  • The metaverse should experience exponential growth in the following years, directly impacting projects like Immutable X.
  • Immutable X becomes the go-to solution for scaling NFTs on Ethereum, drawing in AAA game developers.

Considering the 2 billion supply of IMX, the price could reach $50, with a market cap of $100 billion. With the constant growth of the crypto market, this should put it at a level with the top 20 cryptocurrencies at that time.

Conclusion

Hopefully, this article will come in handy as an in-depth fundamental analysis of Immutable X. Moreover, by connecting the dots, we managed to give you the following Immutable X price prediction:

  • Immutable X price prediction 2021 – $3.5
  • Immutable X price prediction 2022 – $15-$20
  • Immutable X price prediction 2023-2024 – $10
  • Immutable X price prediction 2025 – $50

Immutable X’s scaling technology and API abstraction layer are the main selling points of the project. First and foremost, scaling allows for an efficient and eco-friendly NFT ecosystem. At the same time, the project provides developers with an easy-to-use framework, reducing their costs for integrating NFTs into their games.

All in all, Immutable X is one of the most promising projects in the metaverse narrative. In the near future, we should see its list of partners grow, along with its value.

Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at: https://go.payb.is/FCA-Info

Written by

Post author
Dimitris Tsapis
Dimitris writes content related to the Blockchain and cryptocurrencies but also on topics related to digital marketing.