Amp Price Up By 8.15% – Time To Buy AMP Coin?
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The Amp protocol is one of the best performers in the last 24 hours. Given a crypto market recovery, the Amp price has rallied 8.15%. This has seen several investors want to buy AMP. However, before making a buying decision you need to understand what the protocol is all about. This article sheds light on this and lets you know if you should buy AMP now.
Amp: Blockchain-based Collateral System
The crypto space is still new and therefore largely unregulated. Given the surrounding novelty, bad actors are on the prowl to defraud users of their value. The Amp protocol wants to change all this. The Amp network aims to decentralize risk for users with smart contract features purpose-built for collateral. It is an extensible platform that is used to collateralize asset transfers by providing digital assets with instant, verifiable assurances for real-world application.
One of the major bottlenecks the Amp protocol aims to solve is fraud. The decentralized nature enables users to verify that assets transferred are indeed correct and not inflated. Aside from this, the AMP token is used in the creation and deployment of the next generation of fraud-proof networks and real-world applications.
Leveraging the extant popularity of Ethereum’s ERC-20 token ecosystem, Amp supports all ERC-20 tokens and currently supports more than 25 types of crypto assets. It also boasts of strategic partnerships with top-performing blockchain protocols like Flexa, CoinGecko, Gemini, Sushi, and UniSwap.
Serving as the fundamental building block for the physical and virtual transfers, Amp operates on two core innovations, namely collateral managers and token partitions.
The collateral managers serve as escrow accounts and are built with different specifications for the chosen network. They are also customizable according to the specific need of the recipient network. They are smart contracts that lock, release, and redirect collateral in any intended protocol and support value transfer activities.
Token partitions, on the other hand, allow several collateral managers to enforce rules on separate spaces owned by the same digital address. It carries balances and transaction history that can be verified on the Ethereum network.
As with several proof-of-stake (PoS) consensus protocols, Amp is powered by a governance token of the same name AMP.
AMP Rallying With The Broader Crypto Market
Amp protocol operates in a special niche of its own as it is the only recognized blockchain brand in the digital collateralization business. Although it has not hit the dollar mark since its inception, the Amp protocol is 58th on the most valuable crypto chart with a current market cap of $2 billion.
However, AMP price movement is closely tied to that of premier digital asset Bitcoin. Bitcoin’s boom in the opening days of this year saw AMP rally beyond its low price peg of $0.006602 on Jan. 1. The digital token made a major rally and hit $0.06257 in the April boom before dipping. It retested this price action and surged to $0.0741 a month later but could not retain its positive price movement, slumping more than 50% in the aftermath of the market crash.
While the crypto market was in a downtrend, AMP made its all-time high (ATH) hitting a record value of $0.109 on June 16. It soon dropped thereafter, hitting a mid-year low of $0.0403. With the crypto market on the path of recovery, AMP is regaining lost ground and has rallied 8.15% in the last 24 hours.
At press time, AMP is trading at $0.049480, with more uptrend expected. This rally could be a great time to buy AMP before it makes a new ATH.
AMP Technical and Fundamental Analysis
On the trading chart, AMP is trading just shy of the 20-day moving average (MA) price of $0.050. If the bulls continued to hold sway, this could propel AMP to surge above the current price peg. The AMP relative strength index (RSI) is also showing bullish potential with the oscillator standing at 44.88. This can be an ideal time to buy AMP and rise with the market. Market analysts are also bullish on the future of the collateral token. According to the forecast website Wallet Investor, AMP will rally to $0.118 in one year while it will hit $0.4029 in the next five years.
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