Astar Network Launches zkEVM But ASTR Price Remains In A Downtrend

Key Takeaways

• Astar zkEVM, pioneering Polygon AggLayer integration, launches.
• ASTR’s market downtrend persists despite technological strides.
• The token’s recovery potential hinges on foundational progress.

Astar Network has officially launched its zkEVM, powered by Polygon’s Chain Development Kit (CDK). This launch  signifies a pivotal moment in Polygon’s ambitious multi-chain roadmap. It positions Astar’s zkEVM as the first blockchain to utilize Polygon’s cutting-edge AggLayer. 

Despite this milestone and its potential to change the blockchain landscape, the Astar Network’s native token, ASTR, continues to face a challenging market. It has been in a downtrend since February 13, making a nearly 20% decrease. 

This dichotomy between technological innovation and price performance hasn’t always correlated. Can ASTR help things progress? 

Astar and Polygon AggLayer Integration 

The Astar zkEVM is the first to fully integrate with Polygon’s newly introduced AggLayer. It should, at least in theory, enhance the network’s interoperability and user experience by simulating a single-chain environment. The AggLayer, launched on February 23, aims to unify Layer 2 chains within Polygon ecosystem. It turn, they should enable seamless cross-chain transactions and allow access to a combined liquidity pool from both Polygon and Ethereum, estimated at $55 billion.

Polygon co-founder Sandeep Nailwal highlighted the launch as crucial to realizing a seamless multi-chain ecosystem. More ZK-powered chains are also expected to join soon. Alongside the mainnet launch, Astar is conducting a promotional campaign called Yoki Origins, featuring unique characters and collaborations with artists.

Several projects and institutions are already planning to launch on Astar’s new Layer 2 platform, including Deloitte’s NFT game for the Japanese Government Sports Agency, a tokenization project by Hakuhodo and Japanese Airlines, and a Pokemon trading card tokenization platform by PACKS.

A second version of the AggLayer, promising near-instant and atomic transactions, is also planned for release later this year.

ASTR Price Analysis 

The price of ASTR established its support level at $0.032 in September 2022. After reaching a high of $0.11 in mid-February 2023, it returned to retest it, stopping on a slightly higher low of $0.038 on June 12, 2023. 

After making another uptrend and a retracement to $0.04 on October 19, it started a significant uptrend, leading ASTR to $0.20 at its all-time high on January 21. This was most likely the end of its third wave of the five-wave impulse that started in June 2023. The following downturn was part of wave four. 

Currently, the price is searching for support at the 0.382 Fibonacci retracement level at $0.13, a typical stopping point for wave four. If it bounces, this assumption would be further validated, and we could expect ASTR to continue moving upward and reach a new all-time high. 

Astar’s next target to the upside will be at the 0.786 Fibonacci extension at $0.26. However, this could only be the completion of the higher degree wave three of a five-wave impulse that started with Astar’s first major rise in December 2022. In that case, ASTR could have the potential to climb even higher. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.