MultiversX (EGLD) Key Insights

MultiversX (EGLD) is a blockchain platform focused on scalability, speed, and security for distributed applications and enterprise use cases.

Key Insights

MultiversX (EGLD) is a blockchain platform focused on delivering scalability, speed, and security for both distributed applications and enterprise use cases. Founded in 2018 as Elrond, the company later rebranded to MultiversX in November 2022. The network is powered by three core technologies: Adaptive State Sharding, which enables parallel processing across multiple shards or chains; Secure Proof-of-Stake (SPoS), which prioritizes economic security and minimizes slashing risk; and a WebAssembly (WASM)-based virtual machine that provides broad programming language compatibility. Together, these technologies enable MultiversX to achieve throughput of up to 30,000 transactions per second with 6-second latency. EGLD, the network's native token, is used for paying transaction fees, staking to secure the network, and participating in on-chain governance. The ecosystem supports applications across various domains, including Decentralized Finance (DeFi), gaming, Non-Fungible Tokens (NFTs), and payments.

The MultiversX ecosystem includes the blockchain mainnet, launched in July 2020; xPortal, a user-friendly wallet and dApp browser; xExchange, a decentralized exchange; and xMoney, a fiat gateway facilitating seamless fiat deposits and withdrawals. To expand its reach and capabilities, MultiversX has also established technical partnerships with Coinbase for fiat integration into the network, as well as with leading cloud providers like AWS, Google Cloud, and Alibaba Cloud.

Key Metrics

Financial Analysis

The circulating supply of EGLD increased slightly by 1% quarter-over-quarter (QoQ) to 28.2 million, while the total token supply had 94% unlocked at Q1 close. On the other hand, annualized inflation decreased by 1% QoQ to 4.5%. On MultiversX, the sum of the transaction fees paid lessens the amount of EGLD inflation, meaning fewer tokens are minted. As a result, Q1's transaction fees of approximately $96,800 were used to offset around 4,000 EGLD from being minted.

The annualized real staking yield (staking APR minus inflation) increased significantly by 19% to 2.8% in Q1, considering an APR of 7.3% and annualized inflation of 4.5%. By the end of Q1, 66% of all eligible EGLD was being staked, showcasing an increase of 18% from Q4. This high level of participation in staking demonstrates the community's engagement in securing the network and earning rewards.

In Q1, the price of EGLD declined sharply by 52% to $16.08, leading to a decrease in MultiversX's market cap by 51% to $451.4 million, and its market cap rank slipped from 103 to 107. For comparison, the market cap of all Layer-1s decreased by 18% this quarter.

On MultiversX, users pay gas and priority "tip" fees for their transactions, which sum up to total network fees. These fees decreased by 42% to $96,800, while in EGLD terms, they rose by 14% to 4,000 EGLD due to the token price depreciation.

A unique aspect of the MultiversX ecosystem is that developers receive a 30% discount on gas fees when someone calls their smart contract. These "developer rewards" decreased by 34% to $11,300 and 3% to 478 in EGLD.

Network Analysis

Usage

In Q1, the average daily transactions decreased by 20% to 301,400, while the average daily active addresses declined more sharply by 47% to 41,600. Last quarter, transactions and active addresses saw a spike on December 12 with the listing of AI Nexus's $A1X token, which is an AI-focused gaming and metaverse application launched through xLaunchpad, MultiversX's ecosystem accelerator.

The eStandard Digital Token (ESDT) is MultiversX's native token standard that enables fast and cost-efficient transactions without relying on smart contracts. It provides support for fungible, semi-fungible, and non-fungible tokens at the protocol level and leverages sharding to execute transactions in parallel, quickly delivering value to users by directly storing balances in their accounts. In Q1, users created 611 new tokens, a 29% decrease from the previous quarter. Of these, 20 were Meta ESDTs, which are tokens similar to standard fungible ESDTs but have additional customizable properties, such as built-in release schedules or time-