After a robust performance in March, Orchid (OXT), the token associated with the digital privacy platform, has experienced a sharp decline in April, losing 37% of its value and currently trading at $0.218 as of April 29. This drop has brought the price below the levels seen prior to its March surge and mirrors the valuation from November 2020. With an increasing emphasis on virtual private networks (VPNs) as users seek to secure their data and monetize it, the outlook for Orchid’s cryptocurrency remains a topic of interest. Analysts are now examining the recent advancements within the protocol, alongside the latest price predictions, to evaluate its potential trajectory in 2022 and beyond.
Understanding Orchid
Founded in 2017, Orchid Labs is the driving force behind the Orchid protocol, established by a team with diverse expertise in open-source software, technology management, blockchain investment, app package management, and cybersecurity. Among the founders is Steven Waterhouse, who co-founded the cryptocurrency-focused venture capital firm Pantera Capital, and Jay Freeman, the creator of Cydia, an alternative to the Apple App Store. The Orchid network integrates cryptocurrency into the cybersecurity sector, offering a decentralized VPN service that connects users to a collective pool of bandwidth providers. The platform operates on a token-incentivized bandwidth proxy model, utilizing smart contracts for advertising and payment functions, thus allowing users to browse the Internet with enhanced security and privacy. The native token, OXT, was introduced in December 2019 and is utilized within a pay-per-use framework on the network.
The Orchid service is accessible through its bandwidth marketplace app, functioning similarly to traditional VPN clients. Built on WebRTC—a widely adopted web standard for audio and video transmission—the protocol mandates that both bandwidth users and providers hold OXT in a secure Web3 wallet. Web3 represents a new era of the Internet that empowers users to control their personal data and privacy. The app features a multiple-hop interface that facilitates connections via OpenVPN and WireGuard configurations, utilizing layered encryption techniques through various VPN providers. Users can minimize expenses by paying solely for the bandwidth they utilize, while also being able to switch providers swiftly to enhance their experience. The network employs a “probabilistic nanopayment system” to distribute fees across numerous transactions and participants. Unlike Bitcoin and other cryptocurrencies, OXT tokens do not undergo mining; instead, bandwidth providers can stake tokens to share their surplus bandwidth, taking on the role of network nodes in exchange for rewards. The nodes’ list is maintained through an Ethereum smart contract.
Operating on the Ethereum blockchain, Orchid has faced rising gas fees due to increased transaction volumes. Since OXT is an ERC-20 token, users need Ethereum to cover these gas costs, potentially leading to elevated expenses for OXT holders. In response, Orchid Labs has integrated support for additional blockchains compatible with the Ethereum Virtual Machine (EVM) to alleviate these costs. This allows users to trade bandwidth using xDAI and other digital assets from EVM-compatible blockchains.
Interest in the Orchid cryptocurrency has been on the rise. As of September 29, US regional bank Vast recognized OXT among eight cryptocurrencies available for purchase, sale, and storage in its new Crypto Banking service. This move came after Vast became the first federally chartered bank in the US to provide cryptocurrency access through standard accounts. Furthermore, OXT was listed on the LATOKEN exchange on October 7. An updated app version released on November 5 enhanced user control, simplifying configurations and introducing new features for multiple-hop circuits to boost privacy. Users can now utilize prepaid xDAI accounts alongside OXT for circuit payments. On December 7, OXT was also made available on Crypto.com, which boasts over 10 million users globally, and subsequently on Vauld on January 14, a Singapore-based digital asset platform. By January 20, Orchid expanded its VPN service to accept payments across eight different blockchains, stating that users who self-custody native tokens on these compatible chains can now transfer funds into their Orchid accounts and utilize nanopayments for VPN services.
Current Trends for OXT
On November 2, 2021, OXT reached a peak price of $0.76, marking its highest point since mid-May, when the broader cryptocurrency market saw significant sell-offs. The coin previously spiked to $0.86 on April 17. However, in June, it experienced a slight year-to-date decline, trading below $0.20 after beginning the year at $0.22. Following a summer rally, OXT rebounded to $0.52 on August 25, only to drop to $0.29 by late September amid market fluctuations. Currently, as of April 29, OXT is trading around $0.22.
Future Price Predictions for OXT
As of April 29, cryptocurrency data tracker CoinCodex forecasts a bearish short-term outlook for OXT, with four technical indicators signaling bullish trends, while 26 indicate bearish. Their prediction estimates a 4% decrease in price, projecting it to fall to $0.21 by May 4. CoinArbitrageBot categorizes OXT as a sell based on technical analysis, suggesting a potential price of $0.4 by the close of 2022 and $0.65 by the end of 2023. In a longer-term perspective, it anticipates a price of $1.7 in three years. Algorithm-based forecasting from Wallet Investor suggests that OXT could drop to $0.051 by next year and further decline to $0.034 by 2027. Conversely, DigitalCoin’s price forecast estimates an average of $0.28 in 2022, with a rise to $0.42 by 2025, and a longer-term projection of averaging $1 by 2030. Given the extreme volatility of cryptocurrency markets, accurately predicting future prices remains challenging, making it essential for investors to conduct thorough research, consider market trends, analyze technical and fundamental factors, and consult expert opinions before making investment choices. It is also crucial to recognize that past performance does not guarantee future results, and only invest what one can afford to lose.
