Waves Crypto: A Smart Investment Decision?

Waves (WAVES) is a blockchain platform that enables users to create their own applications and tokens without any programming experience. Launched in 2016, it is one of the earlier crypto plays and has multiple uses, including developing decentralised apps and smart contracts. With no signals of a trend reversal, it has been trading in a bull market for the last several months. However, it is a small-cap cryptocurrency, which means it is a high-risk investment.

Waves has been on an upward trend since April 24, 2021, increasing from $13.50 to its all-time high of $33. While analysts are uncertain about its future, it has been picking up significant investor interest.

Waves' price predictions

Waves Price Predictions

2024

According to a price prediction model, the price of WAVES in 2024 should range between $0.98 and $1.48, with an average price of $1.23. Another source predicts that the price of WAVES in 2024 will be between $1.01647 and $1.479032, with an average of $1.25. A more conservative estimate places the price of WAVES in 2024 between $1.45 and $4.83, with an average of $3.14.

2025

The Waves price prediction model suggests that the price of WAVES in 2025 will be between $1.71 and $1.14, with an average of $1.42. Another source predicts that the price will be between $1.01647 and $1.479032, with an average of $1.25. A third source estimates that the price will be between $4.75 and $7.53, with an average of $6.14.

2026

The Waves price prediction model estimates that the price of WAVES in 2026 will be between $1.25 and $1.87, with an average of $1.56. Another source predicts that the price will be between $1.25 and $9.63, with an average of $8.

2027

The Waves price prediction model suggests that the price of WAVES in 2027 will be between $1.44 and $2.16, with an average of $1.80. Another source estimates that the average price will be around $10.60, and it might cross the $12.51 mark.

2028

The Waves price prediction model does not provide a specific range for 2028 but estimates an average price of $1.96. Another source predicts that the price will be around $14.87, based on the prediction that Waves will transition to its blockchain platform and get enlisted in major cryptocurrency exchanges.

2029

The Waves price prediction model estimates that the price of WAVES in 2029 will be between $1.79 and $2.68, with an average of $2.23. Another source predicts a maximum price of $17.62, based on the expectation that the adoption of Waves will grow exponentially.

2030

The Waves price prediction model estimates that the price of WAVES in 2030 will be between $2.75 and $4.12, with an average of $3.43. Another source predicts that the price will be between $0.4596 and $7.88, with an average of $4.17. A third source estimates that the average price will be around $19, with a minimum of $15.61 and a maximum of $22.47.

2031-2035

The Waves price prediction model estimates that the price of WAVES in 2031 will be between $2.28 and $3.42, with an average of $2.85. For 2032, the model predicts a price range of $3.63 to $5.45 and an average of $4.54. In 2033, the price is expected to range between $3.01 and $4.52, with an average of $3.76. For 2034, the model predicts a price range of $3.20 to $4.80 and an average of $4.00. Finally, in 2035, the price of WAVES is expected to range between $4.23 and $6.35, with an average of $5.29.

Advantages for business clients

• Waves is a blockchain-based platform that allows users to create customized tokens in an easy-to-use manner. This is in line with the belief that more interaction with the technology would lead to a higher percentage of public adoption.
• Waves does not require contracts to be written in the programming language Solidity, unlike its competitor Ethereum. It is written in Scala, and it is possible to introduce plug-in extensions that seamlessly integrate with the software to better fit each user's needs.
• Launching a token on the platform is a matter of a few clicks through the user interface. Because the core functionalities are built into the platform, token launchers do not need to independently conduct an audit of the software since the platform has already verified this. This efficiency reduces costs and introduces a level of business security.
• Once a token is launched, it is immediately tradable on the decentralized exchange that is housed within the Waves platform. The Waves decentralized exchange (DEX) is unique as it provides a secure place through which users can exchange tokens in a hassle-free manner.
• On DEX, users benefit from low fees associated with trades due to the peer-to-peer nature of the transactions. The fee is only 0.003 Waves per trade. In addition, the exchange provides gateways to other fiat trading pairs.
• Waves utilizes a hybrid consensus mechanism to keep the network secure. The Leased Proof-of-Stake (LPoS) mechanism borrows the best aspects of PoS networks and introduces some new protocols to streamline the process. Users stake tokens by leasing them to full nodes that are running the network.
• Waves also has a zero-fee structure for developers. In the Ethereum network, developers pay fees in the form of an internal cryptocurrency called Gas. Waves eliminates gas fees and replaces them with a minuscule flat fee. In this way, developers can create more robust Dapps for users.
• Waves is the first exchange that is a wallet and an exchange at the same time. This has earned it the support of Deloitte as one of its main partners.
• Waves has a strong team with extensive experience in the cryptocurrency space. The leader and founder, Sasha Ivanov, is a Russian entrepreneur and theoretical physicist. The team also includes experts in blockchain development, trading analytics, product development, and marketing.
• Waves has several big-name partnerships, including Deloitte, Burger King Russia, and various Russian banks. These partnerships provide comprehensive ICO services and customized blockchain solutions for specific business tasks.
• Waves is focused on the future, with an easy-to-use token launch platform that is well-positioned to benefit from the fast-growing tokenization sector.

How Waves works

Waves is a multi-purpose blockchain platform that offers a gateway for Web3 technologies such as decentralised applications (dApps) and smart contracts. It was founded in 2016 by Sasha Ivanov, a technology entrepreneur. The Waves blockchain is designed to enable users to create and launch custom crypto tokens without the need for extensive smart contract programming.

The Waves blockchain allows two different types of nodes to run its software: full nodes and lightweight nodes. Full nodes keep a complete history of transactions, while lightweight nodes depend on full nodes for transaction confirmation and interactions within the network. Lightweight nodes are faster because they never download the blockchain. Instead, they retrieve the current network state from full nodes.

The Waves blockchain uses a variation of the proof-of-stake (PoS) consensus mechanism called leased proof-of-stake (LPoS). In a traditional PoS model, any node that locks up tokens can be eligible to add blocks to the blockchain. With the LPoS, nodes can also lease their balance to full nodes. This means that when a full node is selected to produce the next block and is compensated, nodes that lease tokens to that node earn a percentage of the payout.

The Waves blockchain is centred on the creation of 'Smart Assets', tokens with an attached script written in Ride, a programming language native to Waves. Any token can be given functionalities by attaching a script. Since Waves enables users to issue tokens without any programming experience, the tokens and subsequent transfers are done as attachments added to transactions.

The WAVES cryptocurrency is the native currency that powers the Waves crypto ecosystem. It provides security to the Waves blockchain and powers the Waves decentralised exchange (Waves DEX). The Waves DEX runs and maintains the Neutrino protocol, a multi-asset, crypto-collateralised toolkit that allows the tokenisation of real-world off-chain assets. The WAVES token is awarded to block generators via block rewards and transaction fees.

Is Waves a good buy or sell?

Waves (WAVES) is a blockchain platform that enables anyone to build their own applications and launch custom crypto tokens. It is one of the earliest crypto plays, having launched in 2016. It is also one of the earliest players in decentralized apps (DApps), which can be built and executed on the blockchain network.

Waves has been on an upward trend since April 24, 2021, increasing from $13.50 to its all-time high of $33. The price has since dropped to $1.13 as of August 8, 2024, which is still above the $0.933102 price recorded on July 8, 2024.

Waves has a lot of advantages for business clients who want to improve or create new services using its blockchain protocol. It is safe, with more than 300 nodes worldwide, and anyone can join the network. Users can also stake their crypto and earn rewards, with the network utilizing stakers to maintain security.

However, the risk/reward ratio is not good, and if the price falls below $5, it would be a strong "sell" signal. Additionally, the tech is not cutting-edge, and there are already many platforms that support DApps and smart contracts.

Analysts are uncertain about Waves, and this is affecting price predictions, which are largely divergent. Some predict the coin will continue to rise, while others believe the recent gains are unusual and the price will stagnate or drop.

Waves is a small-cap cryptocurrency, which means it is a high-risk asset. It has an infinite supply of coins, which can be considered a hedge against inflation.

Overall, whether to buy or sell Waves depends on your investment goals and risk tolerance. If you decide to invest, it is recommended to always use a "stop-loss" order to manage the high risk.

Waves' risk management

Waves Risk Management

As with any cryptocurrency, investing in Waves (WAVES) carries inherent risks. Here are some key considerations for risk management when investing in Waves:

Volatility

Waves, like other cryptocurrencies, experiences significant price volatility. This volatility can be driven by various factors, including market sentiment, regulatory changes, and media hype. It is important to closely monitor the market and be prepared for potential price fluctuations. Risk management strategies such as stop losses, position sizing, and market timing are crucial when investing in volatile assets like Waves.

Market Capitalization and Liquidity

Waves is currently a small-cap cryptocurrency, which means it has a market capitalization of less than $1 billion. Small-cap cryptocurrencies are generally considered high-risk investments due to their potential for dramatic and unpredictable price swings. They are more susceptible to market manipulation and may have lower liquidity, making it challenging to enter or exit positions. It is important to assess your risk tolerance and investment goals before deciding to invest in small-cap cryptocurrencies like Waves.

Technical Analysis

Technical analysis can help identify entry and exit points when investing in Waves. Monitoring trading volume and price levels can provide insights into the strength of a price move or trend. High trading volume, for example, often indicates fairer pricing and reduces the likelihood of market manipulation. Additionally, significant price moves or trend reversals often occur at price levels with high trading volume.

Crypto Volatility Index (CVIX)

The Crypto Volatility Index (CVIX) is a valuable tool for assessing the expected volatility and risk in the Waves market. When CVIX indicates high volatility (red), it is crucial to implement meticulous risk management strategies, such as using fixed stop losses and balancing risk and reward. During periods of mild volatility (yellow), you can consider trading with larger position sizes and adjusting your stop-loss placement. Low volatility (green) on CVIX suggests a calm market, which may be ideal for taking larger positions.

Diversification

Diversification is an essential risk management strategy when investing in cryptocurrencies. It is generally recommended to invest only a small portion of your portfolio in Waves or any other single cryptocurrency. By diversifying across multiple assets, you can reduce the impact of losses in any one investment and lower your overall risk exposure.

Regulatory and Security Risks

The regulatory landscape for cryptocurrencies is constantly evolving, and new regulations or bans can significantly impact the market. It is important to stay informed about any regulatory changes that may affect Waves or the broader cryptocurrency market. Additionally, it is crucial to prioritize secure storage methods for your Waves tokens, such as hardware wallets, to mitigate the risk of cyber-attacks or unauthorized access.

Frequently asked questions