The Casper (CSPR) token spiked in value in late November but was unable to hold on to its gains as the broader cryptocurrency markets came under pressure. The token launched during the May 2021 market rally but quickly fell during the subsequent sell-off, and has since struggled to recover.
So, what is Casper crypto and what are the prospects for the token as an investment for 2022 and the coming years?
Casper expands partnerships for enterprise-focused blockchain
Casper is an enterprise-focused blockchain that enables businesses to build private or permissioned applications, aiming to accelerate business and developer adoption of blockchain technologies. It offers upgradeable contracts, predictable gas fees and WebAssembly (WASM) coding so that the protocol can evolve as businesses expand their use.
“Casper allows the direct upgrading of on-chain smart contracts, eliminating the need for complex migration processes and making it easy for developers to correct smart contract vulnerabilities,” the project website states.
“Casper also solves the scalability trilemma. Notably, the network is optimised for security, decentralisation, and high throughput… Other essential features include an account permissions model that allows the recovery of lost keys and a permissions model to securely share state between accounts and contracts (without expensive cryptographic checks).”
CSPR is the native token of the Casper proof-of-stake (PoS) blockchain, which rewards validators for staking their tokens to participate in the consensus mechanism. CSPR is also used to pay transaction fees on the network.
The Casper network uses the Casper Correct by Construction (CBC) consensus mechanism, which was developed by Vlad Zamfir, who also helped to create the Ethereum network. Ethereum is in the process of transitioning from proof-of-work (PoW) consensus to PoS for Ethereum 2.0, which will use a hybrid protocol called Casper Friendly Finality Gadget (CFFG).
The mainnet launched on 31 March and Casper held an initial coin offering (ICO) for the token in April on the CoinList exchange, enabling early investors to buy it for $0.03 ahead of its public launch. The coin was listed on some small exchanges and was trading above $1.30 during the cryptocurrency rally in May. CSPR was listed on the Huobi exchange on 11 May.
Casper announced several partnerships following its launch. On 13 April, Casper said that the Terra Virtua collectibles platform would use the Casper network to provide users with verified authentication of physical assets.
On 14 April, Casper announced that BIGtoken, a privacy-focused, opt-in data marketplace where users can monetise their data, will migrate its infrastructure to the Casper blockchain. It also announced a partnership with WiseKey to build a digital identification non-fungible token (NFT) marketplace on the Casper network.
On 27 April, CasperLabs announced a partnership with Lead Ventures to accelerate blockchain adoption in the Middle East and North Africa region.
Other partnerships formed last year include identity validation and data anchoring with Shyft Network, supply chain modelling with QuEST Global, digital certificate verification with Credentia, building a secure, non-custodial wallet with AMLSafe, and building decentralised finance (DeFi) software infrastructure with the Arcadia Group.
CasperLabs has partnered with SJM Group to promote next-generation internet (Web3) adoption in the United Arab Emirates and the wider Middle East. Metacask and CasperLabs have partnered to develop an NFT marketplace for rare whisky.
Robot Cache, a blockchain-powered game distribution and resale platform, will use the Casper network to track PC game distribution. CasperLabs has also partnered with PureFi, which offers full-cycle analytics of cryptocurrency assets.
The CSPR price chart shows that when the cryptocurrency markets sold off, beginning in May, the CSPR price also dropped, bottoming out at $0.05072 on 15 July. The Casper labs token moved back up to $0.2232 in early August but retreated to $0.07174 on 26 September.
CSPR rallied to $0.2401 on 30 November, as metaverse-related cryptocurrency tokens made strong gains, but the price fell back to $0.1091 on 30 December. The token has been trading around $0.11 so far in January.
On 11 January, Casper Labs announced that it will integrate Ferrum Network’s cross-chain token bridge to enable Casper’s compatibility with Ethereum Virtual Machine (EVM) projects, to increase liquidity and accessibility across the ecosystems.
Will that expansion support the CSPR price in the future? What do the latest forecasts show?
Casper coin price prediction: Will the price rise or fall in the future?
Technical analysis from CoinCodex showed that short-term sentiment was bearish at time of writing on 14 January, with only two technical analysis indicators giving bullish signals, compared with 21 bearish signals. The forecast from CoinCodex predicted that the Casper price could rise by 15.92% to $0.13152 by 19 January.
The Casper CSPR token price prediction from WalletInvestor was bearish for 2022, projecting that the price could fall to $0.0072 by the end of the year. It expected the decline to continue into 2023, with the price dropping to $0.0045 by September, but then turning higher to $0.0144 by the end of the year. The coin could then reach $0.0241 by the end of 2025.
The Casper crypto price prediction from DigitalCoin estimated that the CSPR price could average $0.1576 in 2022 and $0.1848 in 2023, reaching $0.2516 by 2025 and $0.4987 by 2029.
CoinArbitrageBot suggested that the token price could average $0.2917 in 2022, rise to an average of $0.4720 in 2023 and surpass the $1 mark to reach an average of $1.2357 in 2025.
PricePrediction’s Casper network price prediction was more bullish, estimating that the coin could average $0.17 in 2022 and $0.25 in 2023, rising to $0.52 in 2025 and averaging $3.39 by 2030.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
We recommend that you always do your own research, and consider the latest Casper coin news, market trends, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never invest more than you can afford to lose.
FAQs
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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