Should you buy 0x? Banking on Polygon and 0x’s combined efforts

By: Milko Trajcevski
Milko Trajcevski
Milko leverages his passion for cryptocurrencies and teaches investors something new each day. During his spare time, he loves… read more.
on Jun 16, 2021
Updated: Jun 22, 2021
  • 0x is a protocol developed by ZeroEx Inc. founded by Will Warren and Amir Bandeali.
  • In July 2017 they held their public sale that raised $24 million in Ether for ZRX tokens.
  • It is used to incentivize a network of users to create and operate new kinds of markets.

0x ZRX/USD can be perceived as this software that allows users to create custom asset markets. Through the usage of its protocol, you can tokenize assets as well as buy and sell tokens that run on the Ethereum blockchain. 

There are two types of nodes that are needed to operate the market, the makers that provide liquidity to the order book, and the takers that take liquidity from the order book.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

The ZRX cryptocurrency plays a huge role when it comes to operating markets on the 0x protocol where it rewards relayers for hosting order books as well as facilitating trades. 

The order book is maintained by relayers, which are tasked with facilitating the communication between the 0x order books and the transactions that are settled on the blockchain. 

When a user conducts a trade, makers need to submit the cryptographically signed orders to a relayer, who then posts it to the order book for a transaction fee, and these orders contain the token which is trader, the price, and expiration date. 

Once it’s ready to be executed, 0x uses smart contracts on Ethereum to match the taker demands with the maker orders and transfers the tokens. 

This way through which buyers and sellers can find one another rapidly before logging the final, confirmed transaction has proven to be appealing, and could potentially see its implementation sky-rocket when other systems take advantage of its technology.

Recent catalysts support buying 0x

Following its ICO between 2017 and 2018 the price of the token rose to $0.42 at its peak. It then fell back down before it gained a forward momentum by the hype of altcoins in early 2018.

In September of 2018, ZRX actually released v2.0 of the protocol that introduced new features, such as the 0x Portal, Non-Fungible Token Support (ERC-721), and increased order matching efficiency to name a few features. 

The excitement around the DeFi and cryptocurrency industry throughout late 2020 also helped ZRX get higher up in value, which remained bullish throughout 2021 where it got over $2 in April. 

On June 10, Polygon announced a partnership with 0x with the goal to bring 1 million users on board. To accelerate the goal of both 0x and Polygon, both communities are contributing a total of $10.5 million. Here, ZRX had a value of $0.96. This gives us the foresight we need to see where the project might be heading, and if they achieve this goal the price could go up by a lot.

On June 14, CoinCap, which is an industry-leading, real-time cryptocurrency market data platform, started enabling ETH, ERC-20 token, and Binance Smart Chain or BEP-20 token trades through an integration with the decentralized exchange (DEX) aggregator 0x. Here, ZRX was valued at $0.90. This means that CoinCap’s users will now be able to trade ZRX, which will lead to an increased level of interest.

ZRX, the native cryptocurrency of 0x, is currently valued at $0.93. With the recent push of Polygon and 0x, we could see an increase in popularity when it comes to using the ZRX cryptocurrency and as such, it might warrant a solid investment. The value could go up to $2 once the goal of putting 1 million more users onboard is achieved, which could occur within the next quarter. 

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Plus500, simple, easy to use and regulated. Register here >