Cryptocurrency Market Analysis

As the cryptocurrency market crashed, investors are seeking discounted opportunities with strong growth potential for long-term positions. Finbold consulted Grok 3 AI for a fundamental analysis of MultiversX (EGLD) from both technological and investment perspectives.

In summary, Grok assessed several objective attributes of MultiversX, giving it a score of 8 out of 10. The AI noted that EGLD is not a suitable short-term buy due to its poor price action around a $500 million market capitalization but indicated it is a top pick for mid- to long-term fundamental investing, eyeing a $100 billion market cap.

From a technological standpoint, Grok 3 acknowledges that MultiversX is among the most advanced blockchains available. When asked if it would feature MultiversX among its AI’s top picks for project building, the response was affirmative.

Fundamental Analysis of MultiversX and Grok AI’s Insights

Grok 3 evaluated eight categories relevant to blockchain fundamental analysis. MultiversX achieved an average score of 7.875, which was rounded to 8 out of 10.

Score Breakdown

• Scalability: 9/10
  With fully implemented sharding technology, MultiversX has a current Transactions Per Second (TPS) capacity of 30,000 on the mainnet and 263,000 TPS on testnet, theoretically surpassing 1 million TPS with adaptive sharding.

• Decentralization: 8/10
  The network has over 5,500 nodes, with 3,200 active validators, ranking only behind Ethereum (ETH). It has a Nakamoto Coefficient of 9, indicating a balanced distribution of nodes.

• Speed and Finality: 8/10
  Currently achieving 6 seconds of finality, MultiversX aims for sub-second finality by 2025, promising to rank among the fastest layer-one (L1) blockchains.

• Security: 8/10
  The blockchain uses a proof-of-stake architecture and native ESDT tokens, with an on-chain 2FA. Grok warns of security risks related to potential stake accumulation exceeding 51%.

• Cost and Accessibility: 9/10
  Transaction costs are approximately $0.002, significantly lower than the industry average. The platform also supports gasless transactions for users, enhancing accessibility.

• Developer Experience (DevX): 9/10
  Promoting a ‘build’ culture with familiar tools like Rust and WebAssembly, MultiversX offers comprehensive documentation and a strong community to assist developers.

• Ecosystem and Adoption: 7/10
  Although MultiversX has a small ecosystem size compared to larger blockchains, partnerships with notable organizations like Alibaba Cloud are driving growth.

• Economic Model (Tokenomics): 8/10
  With a capped EGLD supply to be fully distributed by 2030, 30% of network fees incentivize developers of utilized smart contracts.

Long-term Predictions for EGLD

Grok 3 estimates that EGLD, currently valued at approximately $20, could achieve a market cap between $10 to $30 billion in the medium term (1-5 years) and reach as much as $50 to $100 billion in the long term (5-10 years).

Grok agrees with Justin Bons’s assertion that MultiversX is one of the most technically advanced blockchains today, offering significant investment prospects for mid- to long-term investors. However, the analysis cautions that short-term investments come with risks, and thorough research and due diligence are crucial.

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