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As the crypto world goes mainstream, many investors are looking for the perfect opportunities in the market that could lead to notable price gains. One of the coins that is making major gains currently is the AMP token.
Over the past 24 hours, AMP has gained over 33%, and it is among the most-traded coins in the market. The gains are standing out because the rest of the market is weakening. Bitcoin has slumped to $56k, with the majority of the market also slumping and moving to lower levels.
However, with AMP, the opposite is happening, and buyers are amassing more tokens, and the demand has pushed the coin to a monthly high of $0.06, and many analysts have stated that if the gains continue, the coin could push to $0.1.
So, why is AMP surging while the rest of the market is down?
Binance to list AMP
Binance, the largest cryptocurrency exchange platform, has announced that it will be listing the AMP token, fuelling demand. As the largest exchange platform, Binance attracts many users globally; hence, when this token is made available, its value is expected to skyrocket due to increased demand and trading volumes.
Cryptocurrencies usually make notable gains when they are listed on a major exchange, in what is known as the “listing effect.” This is because new listings are usually expected to come with major gains; hence such announcements attract short term traders to increase their positions to benefit from the short-term price movement.
Some coins can maintain the uptrend after getting listed on a major exchange because it could prompt other top exchanges to list the token. If AMP can benefit from this and is listed on other leading exchanges, it could maintain its current price gains.
What is AMP?
Now that Binance will be listing the AMP token, an investor considering investing in this token needs to ask themselves what it is and whether it is a worthy investment. AMP is the native cryptocurrency used on the Flexa payment network. Flexa is a cryptocurrency payment network that makes it possible for merchants globally to access crypto payments.
As cryptocurrencies continue to gain mainstream adoption in their use case as a payment option, the Flexa payments network can end up getting a real use case in the real financial sector and continue to be endorsed by shoppers and merchants globally.
The Flexa network is among the reasons why many investors started looking into the AMP token. It is an open-source protocol based on the Ethereum network. Thus, it has solid fundamentals, making it a perfect investment token for investors attracted by an asset's technological backing.
Like many networks created after Bitcoin, the Amp network seeks to solve the issues that come with the original blockchain networks, including scalability and fees. As such, the Amp token offers lighting speeds, which provides fast transaction processing times.
When it comes to transacting with crypto, there are two main things that people look at: the fees and the transaction speeds. When a user wants to transfer money over a blockchain network that charges high gas fees, they will start looking for a cheaper alternative, and this alternative is what Amp offers.
However, as the Amp network is built on Ethereum's mainnet, many think it will come with the hefty gas fees that usually plague the Ethereum network. However, this is not the case because Amp has stepped in to offer a solution that comes with low gas fees and fast transaction processing speeds.
Amp solves the problem of high gas fees by requiring parties that want to initiate transfers to give collateral to ensure that the two are protected even if the transaction fails to go through. A smart contract will execute the transaction if there is enough collateral. If the transaction is not completed, the merchant will receive compensation in the form of AMP tokens.
This working model for the Amp network makes it suitable for making eCommerce payments because it ensures that merchants can enjoy secure transactions. When there is enough collateral on the smart contract, the merchant can be assured that they will receive payments, which is almost similar to the working process of a credit card.
It can be tricky for a merchant to be assured that their payments will be processed with crypto transactions because it does not offer the same process as a credit card payment. However, AMP seeks to solve this limitation, and it is among the few networks that have launched a capability for this offering.
The other feature to know about the Amp token is that it is a deflationary token. This means that the token can achieve substantial gains in the future because as the demand picks up while the supply drops, the result will be a price gain.
The development team behind this network has also been working on initiatives such as partnerships to ensure that the network can achieve the desired levels of growth and gain adoption in the crypto space and beyond.
The network has already created a utility for the AMP token and seeks to solve some of the notable issues that plague crypto payments; it can achieve more partnerships and attract more investors that want to get a piece of it.
Is AMP a good investment?
The AMP token has gained by around 33% during the past 24 hours, but short-term gains usually reach exhaustion in the crypto space. It is important to look at the performance of a token over time to know if it would make for a good investment in the market.
Looking at the performance of AMP over time, it has made substantial gains that have pushed it to notable highs. In June, when buyer support surrounding the token was at its peak, it reached an all-time high of $0.12. Currently, it is 43% short of reaching these levels, but if the buyer support can hold, such highs could be achieved again.
On a yearly basis, this token has gained by over 2300%, which has enabled it to move from the lows of $0.0025 to the current $0.0678. This shows much potential for the coin in terms of long-term gains.
It also makes for a good long-term investment because of the potential of its underlying technology. If this network can get increased use cases in the real world, it could record notable price gains and report record-high levels.
AMP is currently a top-performing coin in the market. It has made major gains during the past 24 hours, and most of these gains have come from the news that Binance will list the token from November 23. The 33% uptrend during the past 24 hours has many investors asking whether this token makes for a worthy investment in the market.
The AMP token powers the Flexa network, a payments platform that facilitates fast and cheap crypto transactions. The network has security features that make crypto transactions safe for both merchants and customers on online platforms. Moreover, its historical price performance also shows potential for major gains in the future, thus making AMP an investment worth considering for both the long term and the short term.
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