Disclaimer: The information provided here does not constitute any form of financial advice. Readers are fully responsible for conducting their due diligence before making any investment decisions.
What is Klaytn (KLAY)?
Klaytn is South Korea’s leading decentralized, second-generation proof-of-stake blockchain founded by GroundX, a subsidiary of Kakao. Released in July 2019, the platform helps entrepreneurs and enterprises in numerous sectors create user-friendly crypto-based applications regardless of their experience.
It achieves this premise due to a number of unique technical features. The network uses the proof-of-stake consensus mechanism, which can handle up to 3,000 transactions per second. Each block takes only a second to form, providing extremely low latency.
Another defining feature of Klaytn is community governance, with its 31-member Governance Council consisting of leading global enterprises (LG, Kakao, Binance, etc.) and DAOs (decentralized autonomous organizations) who have voting power on any technical changes to this blockchain.
Presently, this blockchain has seen the most adoption in metaverse and GameFi (gaming + decentralized) products and services, two of the trendiest sub-sectors in the industry.
KLAY, Klaytn’s primary token, deals with several key utilities like settling transaction fees and staking, along with governance. Presently, KLAY is at the #44 spot in CoinMarketCap rankings with a price of $0.222351.
Let’s explore if this project is good from an investment perspective and KLAY price predictions.
Is KLAY a good investment?
Truthfully, Klaytn isn’t very unique technically in the swarm of existing second-generation blockchains presently out there. So, what makes this project different?
Firstly, Klaytn is well-integrated with KakaoTalk, one of South Korea’s most well-known messenger apps. Furthermore, it’s also being used in the Bank of Korea’s central bank digital currency plans.
However, Klaytn developers are now venturing towards metaverse and gaming projects who also implement NFTs (non-fungible tokens) and other DeFi (decentralized finance) services.
The plan is to first gain a stronghold of these markets in South Korea before going out to the rest of the world. Klaytn also has interesting tokenomics. Firstly, its market cap is around $3.1 billion, according to CoinMarketCap.
Coins in this range are considered a medium risk with much higher growth potential than large-capped coins. Lastly, KLAY has a fixed supply of 10.7 billion with roughly 2.7 billion in circulation.
A finite supply for any project is desirable to investors as it makes the coins scarce and deflationary, leading to a potential price increase in the long term.
Should I buy KLAY today: Crypto technical analysis for KLAY
Based on our technical analysis, it’s not yet a good time to buy KLAY. We’ve used a simple crossover system consisting of the 50-day (orange) and 200-day (blue) moving averages.
Although the 50-200 cross has happened, the market is below the two moving averages.
The somewhat ‘flat’ slope suggests a sideways market, meaning the price may stall around this area for some time as it has over the past few days. Any break above this range could signal a new bullish movement. So, we’ll have to wait and see.
Will KLAY coin price hit $10 in a year?
For KLAY to be worth $10, it would need to increase by about 8X. Gains of this magnitude haven’t been seen in the crypto market for a while, with many experts forecasting an indefinite bear market.
So, from this theory alone, $10 in a year is unlikely for KLAY. Other forecasting sites also back up this sentiment with predictions ranging from $0.50 to $4.01. On the low end, Wallet Investor sees KLAY being worth $0.50 to $2.02.
The second-most optimistic forecast comes from PricePrediction, with a minimum estimate of $2.31. On the high end, Gov Capital approximates from $4.87 to just above $6.58 in a year.
What is KLAY’s price prediction for 2025?
Ultimately, Klaytn does have a few compelling propositions. Due to its low price, it might turn out to be a relatively undiscovered gem over time. Yet, as with any project, there are some downsides to note.
The forecasting sites we observed earlier present predictions ranging from $2.73 to $18.63, the latter of which comes from Gov Capital.
This maximum price would represent a roughly 16X increase. While it may seem quite ambitious, this is not too far-fetched within three years.
The only factors that could threaten KLAY’s value in the future are competition (from other blockchains already in the metaverse and gaming space) and the general unpredictable volatility of altcoins.
Therefore, any of the presented forecasts may not materialize, and the price could perform much worse, meaning you should invest cautiously.
The best way to buy KLAY
You can buy KLAY from numerous reputable exchanges like Bithumb, Coinone, Bybit, Binance, Crypto.com, etc.