The valuation of ImmutableX (IMX) has seen a remarkable surge over the past 20 days, reaching a milestone high of over $3 today. IMX is now on the verge of surpassing its last obstacle before it can attempt to surpass its highest historical valuation. Is a new record within reach? Let’s find out.
IMX Price Action
Since October 2023, the valuation of IMX has been on a steady ascent. This bullish trajectory saw its peak for the year at $2.60 in December. Following a period of adjustment that spanned several months, the IMX price has successfully overcome its previous resistance level last week, achieving a new two-year peak at $3.06 today on Gate.io. Moreover, IMX has managed to secure a weekly closure above a critical resistance level that has been in place since February 2022.
However, the bullish trend is met with caution as the Relative Strength Index (RSI) presents a nuanced picture. The RSI, a critical tool for traders to gauge market momentum, indicates whether an asset is in overbought or oversold territory, assisting in decisions on whether to buy or sell.
An RSI value exceeding 50, coupled with an uptrend, signals a continued bullish dominance, but a value below 50 suggests the contrary. Although the RSI is on an upward trend and remains above 50, it has shown signs of a bearish divergence, a predictor of potential trend reversals.
The cryptocurrency community and analysts are optimistic about the future trajectory of IMX. Some analysts highlight a significant 50% rise following the wedge pattern breakout, predicting further gains. Meanwhile, others boast of capturing the recent low at $0.50, highlighting an impressive gain of over 300% since that point.
Immutable At A Glance
Ethereum stands as the leading alternative to Bitcoin and serves as a foundation for numerous decentralized finance (DeFi) initiatives, celebrated for its robust and secure environment. It empowers users to develop decentralized applications (DApps) and various blockchain solutions due to its scalability and programmability. Yet, challenges such as elevated transaction costs, significant energy consumption, and network bottlenecks have been notable drawbacks.
Particularly, the steep transaction fees have deterred traders, gamers, and digital artists operating on the Ethereum network from executing transactions. To address these issues, several layer-2 projects have emerged, aiming to resolve Ethereum’s common problems by ensuring swift and secure network validations sans transaction fees. Among these initiatives, Immutable X stands out. It leverages Ethereum’s capabilities to offer a frictionless NFT trading experience, enabling rapid transactions and extensive scalability for NFT creation.
Operating as a layer-2 blockchain, Immutable X addresses the scalability challenge for NFTs within the Ethereum ecosystem. It provides a secure platform for users to initiate and oversee NFT projects without incurring any transaction costs. This platform not only facilitates immediate trade confirmations and abolishes gas fees but also ensures scalability for various applications, games, and marketplaces without sacrificing security.
Leveraging zero-knowledge rollup technology, the network boasts the capacity to handle over 9,000 transactions and mints each second, far exceeding the demands of mainstream NFT initiatives. Furthermore, Immutable X simplifies the trading, minting, and transferring of NFTs and ERC-20 tokens.
Per its official portal, the network has successfully minted over 50 million NFTs and supports numerous NFT transactions without compromising the security inherent to Ethereum or necessitating additional transaction fees.
Beyond crafting a layer-2 solution for Ethereum-based NFTs, Immutable X also pioneers a fully carbon-neutral NFT marketplace, actively mitigating its carbon footprint. This initiative is achieved through collaborations with leading environmental organizations, Trace and Cool Effect, ensuring energy efficiency and minimal environmental impact during NFT creation and trading processes.
Notably, Immutable X also energizes the Gods Unchained gaming platform, with significant backing from industry giants like Naspers, Apex Capital, Coinbase, Galaxy Digital, and Starkware.
Origin Story
Originating as Fuel Games, Immutable is an Australian blockchain gaming firm headquartered in Surry Hills, New South Wales, launched in 2018 by James Ferguson, Robbie Ferguson, and Alex Connolly.
This venture emerged from a collaboration between StarkWare and Immutable, crafting a blockchain infrastructure that revolutionizes NFT ownership transfer within the video gaming sector. It allows for the creation and trade of ERC-721 and ERC-20 tokens without fees, maintaining the security of user assets. Immutable X integrates NFT exchange capabilities with StarkWare’s ZK rollup technology, offering a streamlined gateway for NFT trading.
NFT-Compatible Wallets and Other Features
Differing from other layer-2 solutions, Immutable X is compatible with all desktop Ethereum wallets, negating the need for network switching. It introduces “the Link,” a transitional layer that enhances the NFT wallet experience and supports a diverse marketplace ecosystem.
Scalability
Immutable X mirrors Ethereum’s security, enhancing network privacy and scalability through its partnership with Starkware. It processes vast quantities of transactions off-chain, which are then consolidated on the main network in a single Stark proof, eliminating transaction costs.
Liquidity
Immutable X introduces a shared orderbook to augment protocol liquidity, allowing orders placed on one marketplace to be filled on another. This feature facilitates marketplace functionality and price discovery, simplifying the development of NFT marketplaces on Immutable X by eliminating the need for a backend.
Minting Capabilities
The platform excels in minting efficiency, allowing users to quickly launch products with Immutable X Mint. It provides a secure means to produce and distribute assets on a large scale without gas fees.
Unique Attributes
As a pioneer layer-2 solution for Ethereum-based NFTs, Immutable X caters to NFT and blockchain gaming communities by enhancing scalability and reducing transaction costs, capitalizing on Ethereum’s strengths to benefit NFT traders with features like zero-cost minting and peer-to-peer trading.
IMX Token Overview
The IMX token, an ERC-20 utility token, incentivizes platform engagement, ranging from trading and liquidity provision to application development. With a total supply of 2 billion and approximately 235 million tokens in circulation, it trades at $1.08 with a market cap of around $224 million.
Tokenomics and Staking
IMX tokens facilitate application development, value exchange, and liquidity provision. The token’s utility extends to fee accrual, staking, governance participation, and marketplace trading fee coverage.
Immutable X levies a 20% network fee, payable in IMX or through token swap. The platform’s fee structure offers flexibility, not mandating IMX token ownership for network participation. Monthly, the network redistributes collected fees to active participants staking IMX tokens, proportional to their stake relative to the total staked amount.
For IMX staking eligibility, participants must hold IMX on layer-1 or layer-2, engage in governance voting, possess an Immutable X NFT, or have completed a transaction within the past month.
ZK Rollup Explained
At the heart of Immutable X lies the zk-rollup scaling solution, developed in partnership with StarkWare. This technology consolidates multiple transactions into a single batch, generating a “proof” for the aggregated transactions rather than for individual ones. This method stands as a highly efficient scaling solution for the Ethereum ecosystem.
The use of Stark proofs addresses the limitations of snark-rollups by reducing the size and cost of publishing proofs on-chain, enhancing user security.
With its zero-knowledge (ZK) rollup, Immutable X processes numerous off-chain transactions, generates “validity proofs” confirming asset ownership, and validates these proofs on-chain. Assets are held in a smart contract and released only upon validation of these proofs, ensuring swift block validation due to reduced data requirements and easing the transition of transactions from layer-2 to layer-1.
