Flexa, the developer of AMP token, is the firm behind developing payments networks that support up to 22 different cryptocurrencies, four stable coins at over 40,000 merchants. The idea behind developing AMP token was to support new features not possible with the existing payment network of Flexa. AMP was developed for decentralized collateralization of digital asset transactions featuring on-chain staking operations, open-source interfaces, and many other features.
AMP token focuses on collateral, which is important since confirming a payment using direct crypto tokens can take somewhere between 30 minutes to 4 hours. This issue contradicts the instant payment claims using cryptocurrency tokens since it takes quite some time to convert the crypto tokens to fiat currency that could be transferred to merchants. AMP token overcomes all these challenges. Collateralization of tokens is claimed from users who stake their AMP token to leverage the Alexa payments protocol used by Spedn and Gemini Pay. Of the total AMP token in supply, roughly 75% is held by three wallets, which are used for staking, Coinbase, and Gemini.
AMP Price Analysis
AMP token value had dipped in its value from August 2021 when Flexacoin was redeemed as AMP tokens in a 1: 1 ratio. Since the conversion, AMP seems to offer a very poor return since its primary focus is on creating scalability. Once enough merchants have joined its ecosystem, AMP could potentially rival the market value of fiat payments networks such as VISA that hold close to 500 billion USD in market cap.
AMP token is currently facing a clear resistance at close to the $0.0734 levels, with two instances of severe profit booking. While $0.544 was acting at a decently strong level, it has now fallen prey to crypto concerns. While AMP offers a real-life function of payments collateralization, its value can be seen dipping because of lesser tokens available in the liquid market. Since only 25% of the total AMP token in circulation is being used by the crypto market, the de-staking of the AMP token could offer a sharp rise in its valuation. Explore AMP crypto price prediction to have a clear idea about the future of AMP token’s price momentum.
The more hands it changes, the more value it will gain. For the time being, the level of $0.0258 seems to be strong support, which is halting the value of the AMP token from further reaching new lows.
In its consolidation range, the AMP token showcases a night to breach the upper resistance and become trending in the positive direction. RSI and MACD indicators both highlight a continuation of positive movement, but one should always consider two aspects of the AMP token. This collateralization token can rise with the diversification of holding patterns and its quite smaller market capitalization that handles a huge chunk of crypto-based payments systems.