AMP AMP/USD is the digital asset token that is used to collateralize payments on the Flexa Network which makes them instant and secure. AMP is built on Ethereum and is an ERC-20 token.
It is designed to solve a major issue in decentralized finance (DeFi) which makes it easier to collateralize any cryptocurrency that you own.
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AMP gained around 15% Wednesday morning, adding to an already explosive growth profile throughout 2021. Is it still safe to buy AMP now? Let’s take a look.
2 AMP catalysts from June to support growth
June was a busy month for AMP investors as the coin benefited from two growth catalysts that should help prolong the bull rally.
On June 7, Flexa announced on Twitter that more than $1.2 billion worth of AMP is staked by people all across the world to each and every Flexa Payment. This showcases just how far the Flexa network has gone and how often the AMP token is used. This gives it a total market cap of $4 billion at the time of writing, and it has a trading volume of $263 million, which makes it an appealing investment.
Just four days later, AMP announced on their official Twitter page that they are now available for trading on Coinbase. The price of AMP has roughly doubled in value since the Coinbase addition as greater availability among retail investors translates to greater demand for exposure to the cryptocurrency.
Fundamental analysis: AMP and it’s recent growth
AMP’s addition to Coinbase could be considered a short-term catalyst, giving early investors even more reason to cash in on their explosive gains. But this may be a mistake as AMP has a multi-year long bullish outlook as e-commerce is showing no signs of slowing down worldwide.
AMP tokens hold their value due to the fact that they guarantee every transaction on the Flexa Network. This means that traditional businesses can accept cryptocurrencies with confidence despite any confirmation delays. Parties can also stake their AMP tokens to receive rewards, and these AMP Tokens which are combined in pools mitigate the risk of someone losing money. The main reason why it’s the right time to buy AMP is that its value is heading upward, in the last week specifically, it has seen growth from $0.06 to $0.09 and that’s a huge increase.
AMP acts as collateral for payments that are made using the Flexa Network, and if the payment takes too long or fails, the collateral can be liquidated to cover the costs. This means that the vendor will still get paid and as such, adds an extra layer of security for both the buyers as well as the sellers that end up using cryptocurrencies.
It also covers a large variety of transaction types, such as digital payments, FIAT currency exchange, loan distributions, property sales, and more. There is also a fixed supply of AMP tokens in order to reduce the risk of volatility in its price.
It is important to note that AMP also uses the concept of predefined partition strategies. This in turn enables special capabilities such as collateral models by which tokens can be staked without leaving their original addresses.
Should you buy AMP now?
AMP started trading in October of 2020 but it wasn’t until early 2021 it started to gain in value. AMP entered 2021 trading at a fraction of a penny and investors have been eager to buy at higher prices.
Unlike other altcoins that have heavily sold off in value throughout 2021, AMP’s price remains on a bullish rise and broke through the psychological $0.10 barrier.
Given its mainstream appeal, it is safe to assume that AMP is going to be around for quite a long time.
Given its increase in popularity, support by multiple trading platforms, and a vast ecosystem, it is bound to kick up the pace and go up in value to potentially over $0.12 by the end of June due to the fact that it has been getting a lot of headline attention and offers long-term investors plenty of reasons to be bullish into 2022 and beyond.
Where to buy right now
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