Layer2 old projects use tokens to surge in popularity again? Good market value management and technological iteration are the key
A single-day increase of over 30% cannot mask the huge selling pressure crisis: Is the outlook for Cartesi not optimistic?Author: 0xmonomi
On January 22, 2024, Cartesi (CTSI) made a remarkable market performance. On that day, the price of CTSI reached $0.2398, ranking it 246th in the cryptocurrency market. More notably, it achieved an astonishing 30.2% increase within 24 hours, and a 15.2% increase over the past 7 days. Such market dynamics not only showcase Cartesi's strong momentum but also indicate its potential market influence.
Cartesi's market capitalization reached approximately $184.6 million, while its fully diluted valuation (FDV) soared to about $239.5 million. On this day, Cartesi's 24-hour trading volume hit $273.4 million, a figure that reflects the high market attention towards Cartesi and demonstrates its activity and liquidity in the cryptocurrency space.
Behind these figures, Cartesi exhibits tremendous potential and market appeal. Next, we will delve into what Cartesi is and why it stands out in the ever-changing cryptocurrency market.
Leading On-Chain Cost-Effectiveness Innovation by Supporting Dapps to Run in Linux Environment Without High Gas Fees and Low Latency
Cartesi, as an off-chain decentralized computing platform, has established a significant position in Layer 2/3 infrastructure, with its biggest feature being the support for decentralized applications (dApps) to run in a Linux environment, free from the limitations of the blockchain's main chain computing power and high transaction costs. This feature allows complex computational tasks to be performed off-chain, avoiding the computational bottlenecks and associated costs of blockchain.
Cartesi's innovation also lies in its ability to ensure the verifiability of dApps and smart contracts on the underlying blockchain while avoiding the complex computations that lead to high transaction fees. This provides users with a platform to run efficient, scalable smart contracts and develop dApps using mainstream software stacks. Cartesi's approach means that although its smart contracts run outside the blockchain's foundational layer, they still enjoy the security protections of the blockchain.
Cartesi has a wide range of application scenarios, particularly excelling in data model training and on-chain gaming infrastructure. The gas savings it offers provide new opportunities for the development of open-source games, such as integrating game libraries like Werewolf into the Cartesi VM. Additionally, Cartesi's backend uses Python programming, allowing non-Solidity developers to easily create dApps.
The leadership team of Cartesi consists of several seasoned experts. CEO and co-founder Erick de Moura has held software development positions at WiNGs Telecom, Arizona Bay, and WebRadar. Alongside him are computer graphics professor, co-founder, and CTO Diego Nehab, as well as Chief Strategy Officer Augusto Teixeira and Chief Operating Officer Colin Steil.
These features and the team's background showcase Cartesi's potential as an innovator in blockchain technology, hinting at its future development direction in decentralized computing.
Introduction to Economic Model and Application Scenarios: CISI Can Be Universally Used on Multi-Chains Like Ethereum Through Cartesi Machine
CTSI, the native token of the Cartesi platform, has a total circulation of 1 billion. These tokens are carefully allocated to several key areas, forming the economic backbone of the Cartesi ecosystem. Below is the allocation ratio of CISI:
Launchpad Sale: In April 2020, Cartesi sold 10% of the total supply through Binance's Launchpad.
Mining Reserve: 25% of the total supply is allocated as a mining reserve, aimed at rewarding mining activities, with specific details available in the transparency report.
Foundation Reserve: Approximately 40.22% of the tokens are allocated to the foundation for research, development, marketing, community building, business operations, development grants, and legal expenses related to the Cartesi blockchain operating system.
Seed Round Sale: 2% of the tokens are used for seed sales, which are planned to continue until October 23, 2022.
Private Sale: 5% of the total supply of CTSI.
Strategic Sale: 0.67% of the total supply, fully allocated.
Team: Team tokens account for 15% of the total supply, with approximately 4.29% already distributed through previous unlocks.
Advisors: Advisor-specific tokens account for 2.11% of the total supply.
As of April 2024, the unlocking progress of CTSI tokens has reached 88%, with 115.38 million CTSI still locked, accounting for 11.54%. The unlocked portion is 884.62 million CTSI, accounting for 88.46%.
In the Cartesi ecosystem, the CTSI token plays multiple key roles:
Staking Mechanism: Users can stake CTSI on the Cartesi network to participate in the consensus mechanism, maintain blockchain security, and earn CTSI rewards.
Transaction Fees: CTSI is used to pay transaction fees within the Cartesi ecosystem, including smart contract execution and asset transfers.
Access to Computing Services: CTSI tokens are used to access computing services on the Cartesi platform, particularly off-chain computing capabilities.
Governance Participation: CTSI holders can participate in platform governance, voting on protocol upgrades and improvement decisions.
DApp Interaction: CTSI is used to interact with decentralized applications built on Cartesi.
Incentives: CTSI incentivizes developers and users to contribute to the Cartesi ecosystem, including building and deploying DApps, maintaining network security, and participating in community activities.
The CTSI token is not only the economic cornerstone of the Cartesi ecosystem but also reflects its versatility and flexibility. It plays an indispensable role in transaction processing, network security, and governance, serving as a key factor driving the growth and adoption of the Cartesi platform. Furthermore, thanks to the universality of the Cartesi Machine, CTSI can operate across multiple blockchain platforms, including Ethereum, Polygon, and Arbitrum.
Technical Advantages Not Highlighted, Huge Selling Pressure on CISI Token: Is Cartesi's Future Uncertain?
Despite its innovation in the blockchain field, Cartesi faces some key challenges. Its programming feature supporting the Linux environment has not shown a competitive advantage against the widespread adoption of Solidity.
From the perspective of token economics, over 11% of CTSI tokens remain locked, which may lead to selling pressure in the market. However, with the upcoming launch of Cartesi Rollups and its first dApp Honeypot, Cartesi's potential as a Layer 2 project is beginning to attract attention, and its current valuation may be underestimated.
The future of Cartesi will depend on the practical application of its technological innovations, the maturity of its ecosystem, and the level of market acceptance. For observers, closely monitoring its subsequent developments, especially in terms of technical performance and ecosystem growth, will be crucial.
