AMP Price Prediction: How Much Will It Be Worth in 2022?
AMP is a cryptocurrency project that allows businesses and consumers to conduct fast yet secure transactions through collateral. Since January 2022, its price has been declining. However, it had a brief 25% rally during the third quarter of 2022. So, it poses the question: does AMP’S potential for use in combating crypto transfer fraud and defaults mean it’s a sound investment in 2022?
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What Is the Purpose of the AMP Token?
The AMP token is a cryptocurrency project built on the Ethereum network, and its primary purpose is to secure instant transactions between parties through collateral. One of AMP’s current main uses is in its creators’ digital payment network, Flexa. On Flexa, users can deposit funds in various cryptocurrencies, some of which may have longer transaction times than others.
Flexa uses the AMP token to make transactions, and therefore, all transactions are instant. The customer makes a payment at a physical store or online, which is instantly transferred to the seller through the AMP token. Then, Flexa pays out the businesses in the currency of their choice, either fiat or digital.
One of the main problems with accepting payments in Bitcoin is that it processes only about seven transactions a second, which can result in slow transaction times. A credit card company, such as Visa, can process up to 65,000 transactions a second. AMP solves this problem by allowing customers to pay instantly and securely with Bitcoin or other cryptocurrencies.
The Ups and Downs of AMP Token’s Price
AMP launched in September 2020 at $0.009 and was in a generally pessimistic trend up until February 2021. After falling to $0.003, AMP had its first rally in February 2021. The price of AMP then rose to $0.03, corrected down to $0.01, and entered a bullish trend, finally reaching an all-time high of $0.109 in June 2021. After that, the price ranged up and down for six months until January 2022, when it entered another grim trend, falling from $0.050 to $0.0055.
However, on Sept. 11, 2022, the price of AMP suddenly rose from $0.0058 to $0.0083. This rally could signify that investors are regaining faith in AMP’s future potential.
Is AMP a Good Investment in 2022?
Maybe — but it depends on the investor’s risk appetite.
The AMP token appears to be a genuinely useful and innovative project. It solves a real problem that businesses wanting to cater to the cryptocurrency community have faced for a long time.
Flexa has seen significant adoption by physical businesses and online point-of-sale companies in the last couple of years. Physical businesses which accept bitcoin payments via Flexa include Nordstrom, Barnes & Noble, Lowe’s, GameStop, Regal Cinema and Whole Foods.
Flexa has partnered with point-of-sale companies, including but not limited to NCR, Blackhawk Network, Rooam, Shopify and Aurus.
Flexa is currently used at over 40,000 locations in the U.S. and Canada. If the network continues to expand at the same rate, AMP may indeed prove to be a good investment in 2022 and beyond.
However, the current general declining trend and volatility of the cryptocurrency market as a whole may also make AMP a risky investment. The cryptocurrency market is a place where 25% upward and downward daily swings are not uncommon, and coins can collapse from all-time highs to fractions of their original value in a matter of days. If Bitcoin is the blue-chip stock, the Apple or Google of the cryptocurrency market, then the AMP token is essentially one of the crypto market’s penny stocks — with potential for both large profits and significant losses.
What Does the Future of AMP Look Like?
Will AMP ever reach $1.00 or more? It’s possible — other cryptocurrency projects have had similar exponential growth. If AMP begins to see increased utilization in other projects aside from Flexa, and it continues to partner with more businesses, then that increased adoption could likewise raise the price.
However, this may take some time. The values of cryptocurrency projects generally go up and down with cryptocurrency market trends overall. Unless Bitcoin and the rest of the cryptocurrency market see a reversal and enter a bullish trend in the next few months, it’s unlikely that AMP will reach $1.00 in 2022 and 2023.
Further into the future, things are less clear but may be more optimistic. A $1.00 and above valuation may be possible by 2025 if the cryptocurrency market begins to trend upward again.
In a recent interview, Tyler Spalding, the creator of AMP token, had this to say about Flexa’s future: “We are trying to shoot for trillions of dollars in what we are doing. We’re going absolutely as big as we possibly can.” If he and his team succeed, valuations in excess of $1.00 are undoubtedly possible.
AMP has a maximum supply of 92.44 billion. Currently, there is 42.23 billion AMP in circulation — 42% of the maximum supply. Because supply can only increase by 138%, if the market cap remains the same, the coin can only fall 58% due to dilution.
Is Now the Right Time To Buy AMP?
With cryptocurrency markets trending downwards, projects with potential may be currently undervalued. If an investor believes that AMP is a project that will increase in value overall and plans to stay invested in it for multiple years, then now may be the perfect time to buy.
However, every investor should thoroughly research any asset they may be interested in before deciding. Investors should also evaluate their risk tolerance and investment strategy, understanding that the cryptocurrency market is volatile and unpredictable. Any investment may result in both large gains and large losses.
Information is accurate as of Sept. 16, 2022.
This article originally appeared on GOBankingRates.com: AMP Price Prediction: How Much Will It Be Worth in 2022?
