0x Protocol (ZRX) On-chain Analysis – What does the data reveal?

• Overview of 0x Protocol (ZRX)
• On-chain data analysis of 0x (ZRX)
• On-chain data analysis ZRX Token
• 0x launches DEX liquidity API on Polygon, next sign of project growth?
• Epilogue

DEX is one of the extremely important pieces in the decentralized finance (DeFi) market. On the other hand, successful DEX projects cannot be without the support from projects providing liquidity, trading tools, etc. 0x Protocol (ZRX) is one of the first projects to support building the first Dex. in the cryptocurrency market at the time. Up to now, 0x has become a large-scale project targeted by many researchers and project developers. So what's so special about the 0x Protocol project? What does 0x Protocol (ZRX) On-chain data say about the project?

Overview of 0x Protocol (ZRX)

What is 0x Protocol?

0x Protocol is a critical infrastructure created for the cryptocurrency market that allows project developers to build Dexs on top of Ethereum . 0x Protocol is a system of smart contracts ( Smart Contracts ) connecting Liquidity Providers and Market Makers to provide exchange functionality in a wide range of applications.

Combined with blockchains that build decentralized markets, 0x Labs seeks to build a global financial system that is more efficient, transparent, and fair than any that has existed in the past. This new infrastructure is free, runs on open source code, eliminates middleman layers and gives individuals greater control of the financial markets.

Features of 0x Protocol (ZRX)

Decentralized exchanges ( DEXs ) often face challenges related to usage and liquidity. 0x solves these problems by providing a flexible DEX architecture, comprehensive developer tools and documentation, and easy integration with the 0x API. Cryptocurrency liquidity pools connected to exchange networks are accessible via a completely decentralized 0x Mesh that operates independently of the Ethereum blockchain to minimize Gas fees.

Some other outstanding features such as: 0x provides a highly customizable toolkit with many different types of transactions: Market, Limit,,…; 0x supports many different Ethereum network standards such as: ERC20, ERC721, ..

On-chain data analysis of 0x (ZRX)

Overview of price movements in the market

0x Protocol is one of the top 100 mid-cap projects in the digital currency market. The capitalization reaches $518,495,011, the circulating supply is 845,323,730 ZRX and the maximum supply is 1,000,000,000 ZRX. Since the launch of 0x V4 the project has grown steadily until the beginning of April, the price of 0x has almost touched the old ATH level of $2.3 and is currently in a correction phase after the growth spurt. However, along with the correction of BTC, which greatly affected 0x, the price fell quite deeply by 300% (from $2.3 to $0.58) and shows no sign of stopping.

Overview of 0x Protocol price movement in the market .

Transaction volume through 0x

Based on the data recorded on 0x Tracking, in the past 1 year, 0x Protocol has grown very well. The total volume of recorded trading volume is over $55.11B (over 7000%). Attracting many users, there are more than 2.47M users of the protocol, of which the number of active users is 421.48K, helping 0x protocol to collect a significant fee of more than $4.1M USD. It can be seen that the attraction of solutions that 0x Protocol brings to the cryptocurrency market is warmly received by the community.

Transaction volume through 0x in 1 year .

However, in the past 30 days, the transaction volume has decreased by more than 50%, and the price of ETH has plummeted, so the gas fee has also decreased, and the protocol fee has also decreased by more than 85%. But the attraction of 0x Protocol has not cooled down, the number of users still maintains an uptrend even though the market is falling sharply.

Transaction volume through 0x over 30 years .

Version 0x V4 is well received by many users, at the time of writing, more than 60% of transactions have passed to version 0x V4.

Version 0x V4 .

Revenue of 0x Protocol

According to revenue figures from Token Terminal, the revenue of 0x Protocol is on an uptrend. However, it can now be seen that 0x Protocol's revenue has leveled off in June. Part of this is due to a bad market impact that led to a sharp drop in transaction volume on 0x Protocol. But in general, the number of users still keeps an uptrend. It can be seen that 0x Protocol receives great attention from users.

Revenue of 0x Protocol .

NVT Ratio of 0x (ZRX)

Although 0x Protocol's transaction volume and revenue both decreased, NVT spending showed signs of strong growth. It shows that the project still receives positive attention from users. This could be a bullish sign for the ZRX Token, but it needs to be combined with many other indicators to confirm it. 

NVT Ratio of 0x (ZRX) .

Number of active users above 0x (ZRX) 

Although the market is in the midst of a retracement, activity on 0x Protocol is still active. Partly it can be assessed that this is a potential project. However, if considering investing in a project, investors need to consider many more aspects. 

Number of active users above 0x (ZRX).

On-chain data analysis ZRX Token

Distribution of ZRX Tokens on exchanges

ZRX tokens are currently on exchanges around 115,073,628 ZRX tokens. Meanwhile, the total circulating supply of LRC is currently 845,323,730 ZRX tokens. It can be calculated that currently, the amount of ZRX on the exchange accounts for about 13.6% and tends to increase again. Along with the previously recorded data, ZRX was under pressure to take profits as the price of ZRX surged. Currently, there are signs of selling on the exchanges when the ZRX trend moves to the bullish floor.

Distribution of ZRX Tokens on exchanges .

The amount of ZRX currently distributed on exchanges accounts for a large number of exchanges such as: Binance , Huobi , Bittrex , Gate.io, Okex...

The amount of ZRX currently distributed on exchanges accounts for a large amount .

On the other hand, according to data recorded by 0x Labs on Dune Analytics there is a large amount of ZRX of 76,055,006 worth more than $45M USD in stakes. Part of the reduction in selling force for ZRX tokens.

ZRX data is carried to the Stake .

ZRX Token balance fluctuations on exchanges

Previously, it could be seen that the amount of ZRX moved to the floor quite a lot when the price was close to touching the old ATH level, maybe this is a profit-taking move of investors. On the other hand, when the ZRX price fell to around $0.7, there was a relatively large amount of ZRX withdrawing from the floor. This move shows that investors are looking towards buying and storing ZRX Token for the long term. However, in recent days, because there are quite a lot of news affecting the market, there has been a large amount of ZRX transferred to the exchange, maybe investors wait for signs of market recovery and sell ZRX.

ZRX Token balance fluctuations on exchanges .

Balance fluctuation in TOP 10 ZRX Holder for the last 30 days

In the top 10 ZRX holders there are only 2 sellers, 3 buyers and 5 people still holding. With a total amount of ZRX of 82,564,428 and a total of 30 days bought of 491,780. Based on the transaction history data of the top 10 holders on Ethplorer.io, the act of buying ZRX is the act of buying ZRX reserves during this correction. In general, there are still investors who buy ZRX at a higher price than the current price, maybe investors still believe that the project will develop in the future and expect the price of ZRX token to increase. On the other hand, if new investors are targeting ZRX, consider short-term investment only because it is possible that investors will move to sell ZRX when their buy point increases and this is not investment advice. . 

Balance fluctuation in TOP 10 ZRX Holder for the last 30 days

0x launches DEX liquidity API on Polygon, next sign of project growth?

0x has released API instances on Polygon, pooling liquidity across all existing sources opening the 0x API engine to the Polygon platform. The move marks an important milestone in the growing decentralized finance (DeFi) market on Polygon.

According to the announcement, API 0x on Polygon is pooled with liquidity across major DEX liquidity channels such as SushiSwap , Dfyn and Curve, Dodo, mStable, QuickSwap, and Cometh. In addition, 0x Protocol claims that the project's API can facilitate trades up to $26B on both the Ethereum network and the Binance Smart Chain .

0x Launches DEX Liquidity API on Polygon.

Currently Polygon is at the heart of major DeFi protocols such as Aave, Curve and Augur, proving its position in the current vibrant DeFi landscape. Hopefully, the launch of API 0x on Polygon will help both projects grow together. So, after the market shows signs of recovery, both projects will once again explode or not?

To sum up, after analyzing the On-chain data of 0x Protocol, ZRX token and the next move of the project, we can draw the following main points:

0x Protocol is one of the top 100 mid-cap projects in the digital currency market.

Based on the data recorded on 0x Tracking, in the past 1 year, 0x Protocol has grown very well.

On-chain data of the ZRX token shows that there is already selling pressure on exchanges. There has been buying force for ZRX from the top 10 holders, but the price of ZRX has not shown any signs of increasing again.

Launching API 0x on Polygon marks an important milestone in the growing decentralized finance (DeFi) market on Polygon. Will the two projects once again explode after the market shows signs of recovery?

Read more: Aave Protocol (AAVE) On-chain Data Analytics – What does the data say about the future of the project?

Epilogue

Above are the analysis of On-chain data of 0x Protocol and ZRX token that TraderH4 brings to readers. Hope to help you better understand 0x Protocol data changes during market correction. 

If the market recovers in the future, will the launch of API 0x on Polygon help the project grow? Discuss with us at Telegram Group TraderH4. And don't forget to visit TraderH4's website to quickly update the upcoming events of the project. See you in the next TraderH4 “On-chain Analysis” issues.

Note: All information in this article is intended to provide readers with the latest information in the market and should not be considered investment advice. We hope you read the above information carefully before making an investment decision.

• Ethereum Analysis: ETH is about to enter a new bull cycle
• Ethereum analysis August 28: ETH price may grow in the short term