Being a layer-1 blockchain project, NEXA, in theory, is in the league of giants like Bitcoin (BTC) and Ethereum (ETH).
NEXA’s native token also goes by the same name.
At the core, NEXA is just another blockchain-based payment transaction platform.
However, the developers make some lofty promises that differentiate the cryptocurrency from the key players.
Launched in June 2022, the project is still new.
Nexa follows the Proof-of-Work (PoW)mechanism for validating transactions.
This is the same method followed by Bitcoin to carry out transactions without the need for a central authority.
It is a time-tested and highly secure feature that has been demonstrated by all these years of operation of BTC.
NEXA attracts users who need fast confirmation times and low transaction costs.
To achieve this, Nexa the platform uses the UTXO model as against account-based transactions followed by the traditional cryptocurrencies.
Nexa also integrates technologies like graphene and Xthinner to address scalability issues.
Unlike the traditional PoW-based cryptocurrencies, NEXA claims low energy consumption appealing to environmentally conscious consumers.
NEXA has plans to offer the feature to build decentralized applications (dApps), a field in which Ethereum is the major player.
NEXA is a late entrant into the crypto space.
Since blockchains are rigidly built, it is often difficult to adopt new improvements to their code.
Still in its nascent stage, Nexa already trying to bridge the gap between the features available on Bitcoin and Ethereum and also solves the limitations of these major cryptocurrencies.
Nonetheless, there are some points to note that make Nexa less attractive to users and investors.
Nexa still has a small user base and market capitalization compared to the major cryptocurrencies.
This will prevent the market from playing out and hamper the development of the platform due to inadequate feedback.
Though the developers of Nexa make big claims about the efficiency and scalability of the currency, the results are stress-tested in real life.
This is especially important in the context of the failure of promising new technologies like algorithm-based pegging employed in Terra.
The blockchain space has become pretty crowded. With a new cryptocurrency being launched every other day, it has become increasingly difficult for a new entrant to stand out in the industry.
In the premise that most of the seasoned users and investors are more likely to prefer one of the 10 largest blockchain projects for their needs, Nexa would have to give a clear demonstration of its unique selling point to gain some serious traction.
The technical details about the operations of Nexa, especially regarding Graphene and Xthinner are still out of the reach of the public domain.
Independent analysis of the project by well-known crypto thinkers and influencers also lacks depth.
NEXA has a total supply of 21 trillion coins with over 2.25 trillion of them already in circulation.
With a market capitalization of just over $12 million, it ranks as the 877th largest cryptocurrency in the world.
The earliest price of NEXA available on CoinMarketCap is on 3 February 2023 when it was traded at $0.000009704.
It hit an all-time high of $0.00002292 on April 1 of the same year.
From there, the price gradually crashed to $0.000006206 on 13 June.
Thereafter, the price has been more or less flat.
As I am writing these lines, NEXA is traded at $0.000006217.
Where Can You Buy NEXA
Owing to its obscurity, Nexa can’t be bought from any of the heavyweight crypto exchanges.
However, the token is listed on some of the lesser-known exchanges like MEXC global, BitMart, Hotbit, LBank, Gate.io, etc.
NEXA presents itself as a mixed bag. With plenty of big though mostly unproven promises, the token shows great potential.
Not Financial Advice
The contents of this piece are not intended to be financial advice.
I don’t recommend buying or selling any of the assets or securities mentioned here.
Always invest your money with a deep understanding of the underlying mechanisms and remember that if you are putting money into something without knowing why, you are essentially gambling.
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