Phala Network (PHA) Soars 300% Amid New Upgrades and CEX Listings

The native token of decentralized cloud computing protocol Phala Network (CRYPTO: PHA) soared 300% at the end of December 2024 amid new upgrades and centralized exchange (CEX) listings.

According to data from CoinMarketCap, PHA gained 300% in a week, surging over the $0.59 mark. The token had an impressive year-on-year growth of more than 330%.

As of December 30, 2024, the token is trading at $0.51, up by more than 7% over the past day. PHA’s market cap currently stands at over $400 million, securing its position as the 181st largest cryptocurrency by market cap.

PHA is the 20th largest token in the artificial intelligence and big data category by market capitalization. With a circulating supply of 772.16 million tokens and a total supply of 1 billion, the Fully Diluted Value (FDV) of PHA is estimated at around $502 million.

Techopedia explores what Phala Network aims to do in the AI-crypto sphere.

What Is Phala Network (PHA) And Why Is It Surging? A Look At December 2024 Updates And Surging Crypto Prices In A Bull Market Rally

Phala Network is a privacy-focused blockchain platform that combines artificial intelligence (AI) and blockchain to create an execution platform for Web3 AI. In essence, it allows AI to interact with blockchains while making Web3 accessible to a wider audience.

The network’s ‘multi-proof’ system aims to simplify AI execution by giving developers the tools to create secure and incorruptible AI agents. These agents work closely with on-chain smart contract, enabling AI-powered decentralized applications.

The native token of Phala Network is PHA, which is used for rewarding compute providers, running AI Agent Contracts, participating in DAO governance, and staking to secure the network while earning rewards.

PHA's recent surge comes on the back of a series of positive developments. For one, Bitget, a leading crypto exchange, listed Phala Network (PHA) in its Innovation, AI, and DePIN Zone, according to an official announcement.

Trading for the PHA/USDT pair began on December 27 at 11:00 UTC, with deposits already open and withdrawals available from December 28 at 12:00 UTC.

Bitget also ran a 7-day promotion, allowing users to purchase PHA with credit or debit cards without transaction fees.

The project's developer also announced a “Christmas gift” on December 25 by shipping Phala 2.0, a major upgrade that brings advanced GPU-based computing to its decentralized, secure computing network and moves it from being CPU-based.

The boost in processing power and efficiency allows for even more demanding AI tasks, while integrated Nvidia Confidential Computing (TDX) keeps sensitive GPU operations secure, even if the host machine is compromised.

“This provides developers with an unparalleled combination of high computational performance and robust security, making Phala the ideal platform for AI and privacy-preserving applications.”

Phala is also launching a Layer 2 rollup on Ethereum in partnership with Succinct Labs and Conduit. “This rollup delivers fast finality, low-cost transactions, and cryptographic security,” the team wrote.

By combining its infrastructure with ZK proofs, Phala aims to streamline Ethereum’s scaling and make it easy to deploy AI-ready, privacy-focused apps through Phala Cloud.

The team added, “Phala 2.0 not only bridges Web2 and Web3 but also sets a new standard for scalable, secure, and verifiable computation solutions in the blockchain space.”

Some ways that Phala could be used include enabling AI to use DeFi platforms — perhaps trading, staking, lending, or swapping based on conditions that suit the human trader.

Companies could also train AI models on confidential data without exposing the dataset, using privacy and decentralization to help increase anonymity while staying compliant with privacy regulations.

The Bottom Line

The recent surge in PHA’s value can be attributed to a combination of positive developments.

Key factors include the launch of the Phala 2.0 upgrade, which introduced advanced GPU-based computing capabilities, and its integration with Ethereum through a Layer 2 rollup.

PHA is riding the wave of the combined uses of crypto and AI. With Phala 2.0 now available for use, it is up to creators to find and execute use cases in the wider world.

FAQs

Why did PHA surge in December 2024?

PHA surged 300% due to the Phala 2.0 upgrade, new GPU-based computing capabilities, and a listing on Bitget’s Innovation and DePIN Zone.

What is Phala 2.0?