Astar Network is a parachain within the Polkadot cryptocurrency network, facilitating the creation of decentralized applications (DApps) via its built-in developmental infrastructure.
The Astar Network is an autonomous cryptocurrency network, which is also an integral part of the Polkadot blockchain. The network's compatibility with the Ethereum Virtual Machine (EVM) enables easy interaction with blockchains like Ethereum, BSC, Avalanche, Polygon, and others.
Today, we delve into the Astar Network and its native token, ASTR, to investigate the project's challenges and potential.
The Genesis of Astar Network and the Polkadot Parachain Auction
Astar Network's primary objective is to develop an effective infrastructure that ensures swift and efficient execution of smart contracts. The project team is largely anonymous and known only to a select circle of Polkadot's management and private investors.
In fall 2021, Astar Network secured one of the five slots in the Polkadot parachain auction. Users pledged over 10 million DOT (approximately $400 million at the time of the auction) to receive ASTR tokens once officially listed on exchanges. The functionality of Polkadot parachain auctions was previously discussed in a dedicated article.
Auction participants received 20% of the total Astar Network token issuance. Users received 102 ASTR for every DOT pledged (approximately $5 at the time of writing).
Details of Astar Network's parachain auction. Source: Parachain.info
Funding rounds
Astar Network, as per the analytical resource Crunchbase, raised $24.4 million across four investment rounds. Notable crypto funds such as Polychain, Animal Ventures, ROK Capital, GSR, and institutional investors like Richard Ma and Gavin Wood, were among the key investors in Astar.
Investment activity details of Astar Network. Source:Crunchbase
The Astar Network Mechanism
The Astar Network platform serves multiple purposes. For starters, developers can construct their applications on this blockchain using the provided software and developmental environment. Additionally, users can set up their own node, stake, and delegate ASTR tokens.
Regarding the decentralized Astar Network platform with EVM support, it provides several tools:
● Cross-chain transfers and token swaps within the Polkadot ecosystem;
● Staking and farming of ASTR tokens;
● Minting and the creation of NFTs.
Interface of the Astar Network platform. Source: Portal.Astar.Network
Numerous decentralized applications, including DEX exchanges, cross-chain protocols, NFT marketplaces, and more, have already been launched on the Astar Network.
Ecosystem of Astar Network. Source:Dappradar.com
ASTR Cryptocurrency
The ASTR token functions as the primary form of transaction fee payment within the Astar Network, a medium to obtain staking rewards, and a tool for project governance. As per the data analytics platform CoinGecko, the ASTR token presents the following characteristics at the moment:
● Asset price stands at $0.05;
● Market capitalization amounts to $223 million;
● Circulating supply is 4.4 billion coins;
● The maximum supply is not limited;
● The average daily trading volume is about $2.5 million;
● All-time high – $0.31;
● All-time low – $0.035.
ASTR tokens can be bought on various exchanges, including WhiteBIT, KuCoin, MEXC, OKX, Binance, among others. A comprehensive list of trading platforms is accessible on CoinMarketCap and Coingecko, found under the "Markets" section.
ASTR token price fluctuations. Source: Coingecko
Intriguing aspects:
● The Astar Network's architecture supports seamless interaction with other networks, enabling asset exchanges;
● It offers users the ability to mint their tokens without the necessity for programming or development skills;
● The network's scalability is unrestricted due to its integration with a multitude of cryptocurrency projects focused on cross-chain transfers, leading to a consistent increase in its transactions per second (TPS).
