According to a new report by FSInsight, the Zilliqa (ZIL) project is a promising one and could be worth as much as $3.9 billion by 2025.
Based on the report, the Zilliqa project aims to cover the enticing Association of Southeast Asian Nations (ASEAN) financial services market. The researchers emphasize that the ASEAN market provides a $7.2 billion revenue opportunity for projects like Zilliqa in five years’ time.
FSInsight notes that Zilliqa is focused on providing DLT-based financial services, known as Open Finance (OpFi), to the banking sector.
The report states, “We estimate that OpFi companies employing DLT in the region could capture 19% share from the digital banking market which represents a meager 2% of the overall ASEAN financial services market. ASEAN’s financial services market is ripe for disruption.”
Zilliqa is poised for such disruption as the ASEAN region has a full 75% of its population either unbanked or underbanked. This percentage is sobering when realizing that the ASEAN collectively is the world’s fifth-largest economy.
The authors of the analytical piece add that, according to their model assumptions, Zilliqa’s ecosystem could be worth $3.9 billion by 2025. The price of ZIL could hit the $0.22 mark while the worth of enterprises within the Zilliqa ecosystem could stand at $3.6 billion.
“From an assumed $64B serviceable market using Zilliqa’s DLT, we assume 30% use the ZIL token to facilitate the financial function(s) being served (i.e. using ZIL for payments or as loan collateral) and a 5x model velocity to reach our valuation. We assume 50% or $90M of DLT fees go to network nodes,” the report states.
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However, the authors of the report also note that there is a risk because of lagging DLT adoption, which could lead to the underperformance of projects like Zilliqa. Consequently, Zilliqa might be unable to compete with other companies in the domain that have greater traction and more features. For this reason, it is necessary to treat the report’s findings cautiously as “it’s early to estimate the market size and our approach may prove to be inaccurate as new markets emerge or fail to materialize.”
2020 has been a decisive year for Zilliqa when it comes to real-world adoption. If the project manages to prove its use case and strike new partnerships, then the value of the ZIL coin might grow.
Recently, core members of the Zilliqa community developed the Zyro protocol, a decentralized protocol built upon the Zilliqa public chain.
At the time of publication, ZIL was trading for $0.02257932, with a 24-hour trading volume of $34,920,306 and a market cap of $257,706,526. ZIL has a circulating supply of 11.4 billion coins and a max supply of 21 billion coins.
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