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Flow price prediction: What is FLOW?

By Peter Henn and Mensholong Lepcha

Edited by Alexandra Pankratyeva


Updated

Technology security concept. Modern safety web digital background. Protection system
Can FLOW recover in 2023? – Photo: Shutterstock

It’s a blockchain that aims to make collecting and trading non-fungible tokens (NFTs) easier, but in terms of crypto, what is flow? Let’s see what we can find out, and also examine some of the flow price predictions that were being made as of 3 January 2023.

Flow explained 

If we cast our minds back to 2021, we might just remember that perhaps the hottest buzzword in the world of both cryptocurrency and blockchain technology in general was the metaverse.

The idea that you could get involved with a virtual online world and interact with it through your avatar was very exciting for a lot of people, and there was a lot of investment in the metaverse and its related coins and tokens that year.

That said, things were not so good in 2022, as crypto crashed and metaverse cryptocurrencies took an even bigger hit than the rest of the cryptocurrency market. Nevertheless, the metaverse, in all its forms and incarnations, is still out there. 

Something that linked in with the growth of the metaverse was the non-fungible token, or NFT. This idea, that you could own the rights to a link to an individual piece of digital art, really caught on in the middle of 2021, helping lift the cryptocurrency market from a significant slump and attracting interest and controversy well outside of the usual walls of the crypto village. Organisations that had pretty much nothing to do with blockchain technology jumped on the bandwagon and offered collectors their own takes on non-fungible tokens.

Again, while NFTs took a financial kicking during the crypto crises of 2022, they are still very much a part of the crypto landscape even if, with their personal brands tarnished by their rather-too vocal overenthusiasm for the sector, a lot of its cheerleaders have become progressively quieter over the past 12 months or so. 

That said, there is one thing that pretty much every NFT artist wants to do when it comes down to it, and that is they want to make their non-fungible tokens part of the mainstream. One of the many networks that shares this goal is the Flow blockchain. 

Dapper Labs, the developers behind Flow, took the lessons learnt from their experience on Ethereum with pioneering NFT platform CryptoKitties to design an alternative blockchain with low gas fees, ease of use and scalability.

“Flow was explicitly designed to support games and consumer applications on day one, with the throughput necessary to scale to millions of active users,” said Flow on its website.

Flow claims that it is different from other blockchains due to a pipelined architecture that separates the jobs typically done by a single miner or validator across five different computer, or node, types on the network, thereby, at least in theory, reducing redundant effort and improving efficiency. 

Flow claims to be “the greenest Web3 network”. It uses a proof-of-stake (PoS) consensus mechanism, upgraded by multi-node architecture, which aims to improve the network’s throughput and speed, and make it environmentally friendly without sharding or Layer 2 solutions. 

The FLOW coin is the native token of the Flow blockchain. According to Flow’s technical papers, FLOW can be used to pay transaction fees or gas fees on the blockchain. It can also be used as a deposit for data storage and as collateral for other tokens. People who have FLOW are also able to vote on changes to the network, and people can stake the coin in order to earn rewards. 

FLOW is inflationary. Flow said its native token has a cap on monetary inflation, and that inflation on FLOW will go down as network fees increase. However, Flow highlighted that monetary inflation will be higher in the first year of operation to incentivise greater levels of staking.

DOGE/USD

0.17 Price
+3.490% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.55 Price
+1.890% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

69,128.75 Price
+0.330% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

BCH/USD

493.75 Price
-0.960% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

Flow price history

Flow price history chartFlow price history from launch to present - Credit: CoinMarketCap

Let’s now cast our eyes over the flow price history. While past performance should never be taken as an indicator of future results, knowing what the coin has done previously can help give us some much needed context when it comes to either making or interpreting a flow price prediction. 

Flow first came onto the open market in January 2021, it was worth around $8. It seemed like the first few months of that year were a pretty good time to start a crypto project as the market really blossomed at this time and flow followed suit, shooting up to reach an all-time high of $46.16 on 5 April. After this, it fell down dramatically over the summer, when it sank to lows below $7.20. After this, there was a recovery and it closed the year at $8.80.

While 2021 was a good year for crypto overall, 2022 was one the movers and shakers of the crypto sphere would rather forget. Sadly, it wasn’t as if FLOW was a coin that broke the mould, as it ratcheted up losses over the course of the 12 months.

A series of market crashes sent it down to a low of $1.22 on 19 June and, while there was something of a recovery after that, November’s collapse of the FTX (FTT) exchange dealt it, and the market as a whole, a huge blow and the coin closed the year at $0.6535, down by more than 90% year on year.

As of 3 January 2023 it was worth about $0.732. At that time, there were 1,036,200,000 FLOW in circulation out of a total supply of 1,374,883,685. This gave the coin a market cap of about $752m, making it the 47th largest crypto by that metric and the second-largest NFT-related crypto.

With that all said and done, let’s take a look at some of the flow price predictions that were being made as of 3 January 2023. Keep in mind that price forecasts, especially when it comes to a commodity as potentially volatile as cryptocurrency, very often turn out to be wrong. Also, you should keep in mind that many long-term price predictions are made using an algorithm, which means that they can change at a moment’s notice. 

First, CoinCodex had a rather mixed short-term flow price prediction for 2023. The site said the coin could fall to $0.678513 by 8 January before falling to $ 0.469628 by 2 February. The site’s technical analysis was bearish, with 16 indicators making negative signals against 14 making bullish ones.

Next, PricePrediction.net made a flow coin price prediction which argued that the crypto could hit an average price of $0.91 in 2023. The site thought that the coin could reach an average price of $1.93 in 2025 before it made a flow price prediction for 2030 of $12.96.

Meanwhile, DigitalCoinPrice had a flow token price prediction  which said it could reach $1.51 this year before going on to make a flow price prediction for 2025 that saw it worth a potential $2.48. By 2030, the site said, FLOW could be worth $7.42.

Finally, WalletInvestor was far more downbeat and bearish in its flow price forecast, saying that it thought the token was in for a tough 12 months, potentially collapsing to just $0.058 by early January 2024. 

When considering a FLOW token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency coins and tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never trade with money that you cannot afford to lose.

FAQs

Is FLOW a good investment?

It is hard to tell right now. A lot will depend on how the metaverse and NFT sectors behave over the coming weeks, months and years, as well as how the market performs as a whole. 

Remember, you should always carry out your own thorough research before making an investment. Even high-market-cap cryptocurrencies can be affected by bear markets. So investors should be prepared to make losses and never purchase more than they can afford to lose.

Will FLOW go up or down?

No one can tell right now. While the likes of PricePrediction.net are upbeat, the likes of WalletInvestor are far more downcast and bearish. Remember, too, that price predictions are often wrong and that prices can, and do, go down as well as up. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether FLOW is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Should I invest in FLOW?

Before you decide whether or not to invest in FLOW, you will have to do your own research, not only on FLOW itself but on other NFT and metaverse related coins and tokens. 

Ultimately, though, this is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and never invest more money than you can afford to lose because prices can go down as well as up.

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