A thorough analysis of the launch of Divi’s cross-chain bridge to Ethereum blockchain has revealed that the launch will cause the coin’s price to rise as high as $1.64 within the first six months the bridge becomes live. The need to solve the limitations of not performing cross-chain transactions has been on the rise over the years since the debut of blockchain technology. Many crypto enthusiasts have been looking forward to the days when it will be possible to convert their Divi coin to an equivalent ERC20 token on Ethereum or Binance Smart Chain.
Divi is a blockchain project that operates with the tagline, “Crypto made easy.” It aims to accelerate the adoption of digital currencies. Read more on the project’s mission on https://diviproject.org/. It fulfills this mission through its easy-to-use Divi Wallet. In it users can send or receive crypto easily. In just a few touches they can set up a Master Node or Staking Vault right from their mobile, to earn 20% APY on their Divi. Visit https://diviwallet.com/ to get started.
More importantly, Divi will in the coming months announce the launch of its cross-chain bridge between Divi to Binance smart chain and Ethereum developed by Divi Labs. The launch will mark a key milestone toward making cryptocurrencies simple and frictionless to use, helping to make digital assets more accessible to everyday users.
This launch is a remarkable debut for Divi, as we expect significant development in the project’s ecosystem, specifically regarding the coin’s price. Research and statistics gathered are pointers to the bullish effect this launch may have on the value of Divi’s coin. Moreso, the bridge will be integrated into the easy-to-use Divi wallet, which already supports ETH, BTC, and LTC. No large-scale announcement has been made yet, so these expectations are not yet baked into the price of Divi.
As much as Divi’s cross-chain bridge is exciting, it is not the first of its kind. There are existing cross-chain bridges such as the wrap protocol of Tezos, Panama of Binance, Wormhole of Solana, and lots more. Some of these chain bridges have been launched as far back as 2020 and have been operational since then. Thorough investigations have been made regarding the playouts of these existing cross-chain bridges, with lookouts on the price and volume relative to the dates and periods. The table below is a table analysis of five different samples of on-chain bridges.
|Coin||Date Ann||Date Live||Price Ann||Price Live||Price 3m||Price 6m||Price 12m|
|Tezos||April 26, 2021||Apr. 26, 2021||5.11||5.13||2.57||6.99||5.17|
|BSC||Sept 30, 2020||Sep 30, 2020||28.3||28.4||38.4||300.9||291.0|
|SOL||Oct 8, 2020||Oct 28, 2020||2.66||1.59||3.76||31.75||198.57|
|AVAX||Sep 7, 2021||Oct 28, 2020||45.00||44.01||95.95||–||–|
|BCH||Dec 20, 2020||July 30, 2021||265.01||515.006||598||427||–|
From the data above, it is observed that some of the coin bridges that made their bridge go live the same day or not long from when it was announced did not experience a significant drop in their coin’s price, the likes of Tezos, BSC, and BCH. We expect the Divi cross-chain bridge announcement will be made not long from when it goes live to maintain its price stability before the price finally starts its bullish movement for consecutive months, just like the coins above did.
|Coin||Date Ann||Date Live||Price Ann||Volume Live||Volume 3m||Volume 6m||Volume 12m|
|Tezos||Apr 26, 2021||Apr 26, 2021||5.11||498k||313k||299k||–|
|BSC||Sept 30, 2020||Sep 30, 2020||28.3||184k||298k||632k||221k|
|SOL||Oct 8, 2020||Oct 28, 2020||2.66||905k||25k||173k||169k|
|AVAX||Sep 7, 2021||Sep 7, 2021||45.00||426k||45k||–||–|
|BCH||Dec 20, 2020||July 30, 2021||265.01||10k||4k||5k||–|
There were inconsistencies in the data of the coins’ volume, which could result from many factors. However, the same implication of the date of bridge announcement and bridge live had on the coins’ price also reflects in the volume. Take Tezos and BSC, for instance; even though Tezos volume dropped progressively from when it was live for the next three and six months, still it wasn’t as drastic as SOL and BCH’s own due to the long period between the two dates. BSC experienced a consistent and significant increase in the market volume within the six months it went live. This analysis further strengthens our confidence that the bridge will go live soon after it is announced.
The charts above represent some coins’ price and volume change that launched their cross-chain bridges. The data ranges from the price of the coin on the day the launch was announced, through to when the bridge became live, then through to three, six, and twelve months after the bridge was live in relative to the trading volume of the coin for three, six and twelve months as well.
Now, what are the possible ways Divi might play out in the coming months after its bridge is made live? What do we expect from its price and trading volume? Will it rise, fall, or stay stagnant? Well, we can make an analysis based on the available data from the researches done.
If Divi plays out as an average chain as Tezos did, we expect to have a similar movement as Tezos did. Divi’s price currently is $0.0839 and may not experience any significant change between the bridge announcement and the bridge live date. Still, the price may decline about 49%, driving down its price to $0.044 for the first 3 months after the bridge is live, same with the trading volume. However, the price is expected to have about a 170% surge, driving the price to rally as high as $0.122 for three months after the first decline. Afterwards, Divi’s price could then experience a minor decline to the downside for three consecutive months, totaling 12 months since the bridge was live.
From another angle of analysis, with Divi performing as the coin with the best performance did, then we will have a different result. The coin with the best performance based on research is the Wormhole bridge of Solana. It had no significant change in price from when the bridge was announced, and it progressed to experience a 150% rally for the first three months, signifying a steady appreciation in price, which is a good move for a coin. Things got sweeter when the coin had a 700% increase in price three months after its first significant move, as it didn’t stop there but progressed to make about 550% price increase for the last three months to add up as a year. The coin, therefore, made a total increase of 8500% in price from when the Solana bridge was made live till it was twelve months old.
This achievement is remarkable for a coin. On the bright side, if Divi will play out the same way, its price should hit $0.20 in the first three months after the bridge is live and drive its price to hit $1.64 after six months. More is expected after the first six months; Divi can achieve $9.87 at the end of a full year since its bridge came live.