Klaytn (Klay): A Gamefi Blockchain Platform
Klaytn and Its Strengths
Klaytn (KLAY) is one of the most innovative blockchain platforms that offers original contributions to GameFi, Metaverse, and the creator economy.
Klaytn is also a South Korean platform that continues its business expansion from its office in Singapore. The company’s vision refers to developing the entire ecosystem that may add complementary blockchain services as well as become better-integrated with other platforms globally. In this manner, the demand for KLAY may continue increasing with the growth of the major crypto segments, including Metaverse and GameFi. The unique IBFT consensus algorithm is used that completely eliminates the risks of transactions on blockchain being reversed. For this reason, KLAY may be successfully used for mission-critical operations. KLAY’s Governance Council contributes to the process of decentralized decision-making that enables every holder to make their respective contribution to the development of the entire platform.
KLAY’s current price is $1.21 with the circulating supply of 2.63 billion. At the present moment, its market capitalization equals 3.2 billion, making it the 44th largest cryptocurrency. KLAY does not have the maximum supply, and its supply will continue increasing, according to the set inflation target. In this regard, the platform relies on a system developed by Ethereum, although it adjusts it to the requirements of the GameFi segment. KLAY reached its maximum price of $4.25 at the end of March, 2021 during the first wave of the crypto market boom of 2021 without any corresponding progress in the second half of the year. Overall, additional innovations and higher reliability of the platform may be needed for continuing challenging the market dominance of competitive projects.
Figure 1. Klaytn’s Ecosystem and Integration with Other Services; Data source – Medium
Reasonability of Investing in KLAY
The long-term perspectives of investing in KLAY depend on the following major factors: its ability to establish its market dominance outside Asia; the effectiveness of integration with other services; the overall dynamics of the GameFi segment; and the sustainability of its long-term business solutions. Currently, KLAY does not demonstrate the sustainable improvement of its infrastructure and ecosystem that may encourage users to reorient from other leading GameFi platforms. Thus, considerable improvements in this sphere are objectively required.
Figure 2. Price Dynamics of KLAY/USD (3-Months); Data source – CoinMarketCap
Currently, the price dynamics of KLAY follows the channel with the negative slope. Moreover, the price is even closer to the low rather than high boundary. Under such conditions, the chances of reversing the existing negative trend are minimal. KLAY’s price and capitalization tend to decline much higher than the overall dynamics of the crypto market that also faces the risks of “crypto winter”. Only radical innovations supported by the more effective complementary services may allow overcoming the existing problems. KLAY should closely monitor both users’ changing preferences and competitors’ innovations in the Metaverse and GameFi segments to make relevant adjustments with positive long-term implications. However, the short position still appears to be more reasonable for investors, considering the combination of the major technical and fundamental factors observed in the market.
