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What is Moonbeam? What you need to know about GLMR, the cross-chain hub turning heads

By Nicole Willing

Edited by Vanessa Kintu

10:00, 16 October 2022

Moonbeam GLMR logo on coloured background
Moonbeam was founded in 2019 by Derek Yoo Photo: Praveen Nanu / Shutterstock

Moonbeam (GLMR), an Ethereum-compatible smart contract parachain on the Polkadot network, has been attracting attention as blockchain developers focus on cross-chain platforms that enable connected applications.

Moonbeam has two cryptocurrency tokens. Glimmer (GLMR) is its primary utility token on the Polkadot network and moonriver (MOVR) is the utility token for its Moonriver deployment on the Kusama network.

The GLMR price made gains last week as Moonbeam introduced a software development kit (SDK) for cross-chain transfers between Kusama and Polkadot. But the price has dropped back under bearish pressure from the broader cryptocurrency markets.

What is Moonbeam and what is the outlook for GLMR as an investment asset? In this article we look at the blockchain project’s development and the latest moonbeam price prediction outlook.

What is Moonbeam?

Moonbeam was founded in 2019 by Derek Yoo, CEO of PureStake, which provides secure public blockchain infrastructure for application developers, projects and enterprises. 

Stefan Mehlhorn, a specialist in managing early-stage companies who previously worked with Samsung Pay, is the chief operations officer (COO) at both Moonbeam and PureStake.

Moonbeam is a smart contract platform that enables developers to build applications that operate across multiple blockchains. Developers can use popular Ethereum tools to build or redeploy projects created using the Solidity programming language and Substrate.

Substrate is an open-source development framework for customised blockchains. It includes support to connect to the Polkadot and Kusama chains.

According to the Moonbeam website:

“Moonbeam delivers complete Ethereum compatibility within a Polkadot parachain environment, so developers can continue to use the programming languages and tools they’ve grown used to — but within a fast-growing and scalable Layer 1 chain.

“It is also compatible with the Substrate and Polkadot ecosystem, including block explorers, wallets, parachains, and more, allowing users the flexibility to choose the right tools and services for the job.”

“Moonbeam is much more than just an EVM implementation: it’s a highly specialized Layer 1 chain that mirrors Ethereum’s Web3 RPC, accounts, keys, subscriptions, logs, and more. The Moonbeam platform extends the base Ethereum feature set with additional features such as on-chain governance, staking, and cross-chain integrations,” the website states.

Moonbeam’s Ethereum compatibility means developers can use their Solidity smart contracts with minimal changes and popular developer tools such as MetaMask, Hardhat, Waffle, Remix and Truffle. They can also use Ethereum accounts, addresses and signatures to interact with Moonbeam, and use tools such as oracles, bridges and wallets that are already built on the Moonbeam network.

Additionally, Ethereum developers can use Moonbeam to avoid the scalability challenges with the Ethereum blockchain caused by high gas fees and capacity constraints. Developers can extend decentralised applications (dApps) from Ethereum to Polkadot or create new dApps using familiar Ethereum development tools with minimal differences when the apps are moved between chains.

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How does the GLMR token work?

The GLMR utility token has several key uses on the Moonbeam network:

  • Gas metering for smart contract execution

  • Incentives for the platform’s decentralised node infrastructure

  • On-chain governance

  • Network transaction fees

GLMR launched in January 2022 with a total supply of 1bn tokens. A portion of the tokens was reserved to ensure that Moonbeam maintains a parachain slot on the Polkadot network. Portions were also reserved for community funding.

As of 14 October, there were 422.56 million GLMR tokens in circulation out of a total supply of 1.38 billion, according to data from CoinMarketCap

The maximum supply of GLMR is uncapped and Moonbeam is targeting an annual inflation rate of 5% “to pay for ongoing security needs of the network.” These include maintaining an ongoing parachain slot and incentivising collators to provide block production services. 

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“Of the 5% inflation, 1% goes towards incentivising collators and 1.5% goes to the parachain bond reserve to accumulate on chain funds to pay for a parachain slot in perpetuity. The remaining 2.5% is for users that stake their GLMR tokens and help power the collator selection process,” according to the Moonbeam website.

From the transaction and smart contract execution fees, 80% are burned to create a deflationary force for the GLMR price and add value for GLMR holders based on the network’s usage. The remaining 20% of the fees are allocated to the on-chain treasury for governance.

GLMR price volatility

GLMR price chart

Launched during the cryptocurrency selloff, the GLMR price opened at $11 on 11 January, climbed to $29.84 and then dropped to $11.91. The price fell to a low of $8.40 on 12 January before bouncing to $15.88 on 14 January. 

The selloff resumed. GLMR plunged to $1.89 by 24 February as crypto investors sought the safe haven of the US dollar (USD) at the start of Russia’s invasion of Ukraine.

GLMR traded up to $5.94 on 4 April but fell to $2.52 on 1 May. The token traded between $1 to $2 until 12 June, when it dropped below the $1 mark. By 18 June, GLMR fell to $0.555. The price moved up to $0.8589 on 31 July, but dropped to $0.5134 on 1 September. 

After a rebound to $0.5672 on 2 September, the price fell below $0.50. It briefly moved back above $0.50 to $0.5292 on 6 October when it announced the new cross-chain development kit, but subsequently fell back to reach a fresh low of $0.417 on 13 October.

The XCM SDK is designed to “simplify the creation of cross-chain transfers for Moonbeam DApp developers. The new XCM SDK enables builders to easily create transactions that deposit and withdraw assets to Moonbeam or Moonriver from the Relay Chain and other parachains in the Polkadot or Kusama ecosystem, respectively,” according to the announcement

“The SDK alleviates some complexity of XCM transfers to provide a smoother experience for builders on Moonbeam and Moonriver. The Moonbeam XCM SDK can also be leveraged by developers working on other parachains to build dApps that transfer tokens between chains.”

What is the outlook for the glimmer token price? Let’s take a look at the latest GLMR price prediction analysis below.

Moonbeam price prediction: will GLMR rebound or set new lows?

Technical analysis from CoinCodex indicated that price sentiment for GLMR was bearish with all 23 indicators showing bearish signals. CoinCodex’s moonbeam price prediction was also bearish, projecting that the price could fall by 6.98% to $0.406834 by 19 October and $ 0.404829 by 13 November.

The Moonbeam price prediction for 2022 from algorithm-based forecasting service Wallet Investor at the time of writing (14 October) estimated that the GLMR token could fall to $0.0342 by the end of the year. The price could then drop to $0.0227 by the end of 2023. Wallet Investor’s Moonbeam price prediction for 2025 showed the token could then move up slightly to $0.0839.

The long-term GLMR price prediction from DigitalCoinPrice was bullish, forecasting that the token could average $0.72 in 2023 and $1.14 in 2025, based on historical data. The Moonbeam price prediction for 2030 showed the price doubling to an average of $2.43.

The Moonbeam coin price prediction from Price Prediction projects that GLMR could average $0.74 in 2023. The website’s deep artificial intelligence-assisted technical analysis is more bullish for the longer term, showing the price rising to $1.65 in 2025 and soaring to $11.10 by 2030.

When looking for moonbeam crypto price predictions, keep in mind that high-risk cryptocurrency markets remain extremely volatile. This makes it difficult to accurately predict future prices. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency 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 invest money you cannot afford to lose.

FAQs

Is Moonbeam a buy, sell or hold?

You should do your own research to determine if GLMR is a good fit for your investment portfolio. Whether the token is a suitable investment for you will depend on your investing goals, trading strategy, risk tolerance, and the size of your portfolio. It is essential that you do your own research before making any investment or trading decision. And never invest or trade money that you cannot afford to lose.
 

Who created Moonbeam?

Moonbeam was founded in 2019 by Derek Yoo the CEO of PureStake.

What is Moonbeam worth?

At the time of writing on 14 October, Moonbeam was worth $0.4329 with a market capitalisation of $182.9m.

How many Moonbeam coins are there?

As of 14 October, there were 429.56 million Moonbeam coins in circulation out of a total supply of 1.038 billion.

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