The NuCypher price prediction has retreated sharply in the past few weeks. NU, its native token, has dropped to about $0.50, which is about 21% below the highest level last week. The price is also about 81% below its all-time high, bringing its total market capitalization to about $374 million, making it the 182 biggest cryptocurrency globally.
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What is NuCypher and the NU token?
NuCypher is a relatively small blockchain project seeking to change the blockchain industry by addressing some of the challenges in conventional platforms. It is a decentralized Key Management System (KMS) that solves the challenge of using consensus networks to store and manipulate encrypted data.
According to its white paper, NuCypher provides encryption and cryptographic access control that is provided by a decentralized network. As a result, it is a network that enables the sharing of important sensitive data through a decentralized and safe platform. The developers hope that the network will be safe, just as standards like SSL/TLS are on the internet.
NU is the native token for the NuCypher ecosystem. The token is used to safeguard the network and create value for the miners. The total supply cap for NuCypher tokens is 3.89 billion. When it was launched, the developers started releasing 1 billion NUs.
What is the use case for NuCypher?
The NuCypher price has declined by about 80% from its highest level on record as investors worry about its use case.
There are several key use cases for the network and the general key management industries. For example, it can be used to share encrypted files. In this, it can work as a decentralized version of DropBox and OneDrive.
Additionally, it can be used in encrypted end-to-end communication platforms like Slack and digital versions of health records like EHR. Other industries that will find the network useful are in patient-controlled electronic records, blind identity management, mobile device management, and mandatory access logging.
Who created NuCypher?
NuCypher was created by three computer scientists in 2018. They were Michael Egorov, David Nunez, and MacLane Wilkinson. Since its founding, the network has raised $15.6 million from investors like Fenbushi Capital and Bitfury Capital.
In addition, the developers conducted an Initial Coin Offering (ICO) that raised $125 million. The NuCypher ICO token price was $0.13, meaning that original investors have made money.
NU price history
At its peak, NuCypher was one of the most popular cryptocurrencies in the world. As a result, when the coin started trading, it soared to an all-time high of $3.43. However, these gains were limited as the coin’s price crashed by more than 95% between its ICO date in June 2021 and July.
The NU price then rose to a high of $2.91 on October 15th, 2021. Since then, it has crashed by more than 82% from its 2021 high, bringing its total market capitalization to more than $375 million. Its fully diluted market cap is about $1.92 billion. The latter refers to the total value of a coin if the maximum supply is in circulation.
Latest NuCypher news: NuCypher to merge with Keep
There has been no major news from NuCypher in the past few days. However, the most relevant event was the merger between NuCypher and Keep Network. The merger created Threshold, a platform that combines Keep’s infrastructure and NuCypher’s privacy tools.
Another major news is that Binance announced that it would support the merger. The new token will be known as T, and Binance has announced that it will suspend most of the positions with NU. It will even suspend all NU and KEEP deposits on February 16th.
NuCypher price prediction 2022
The daily chart below shows that the NuCypher price has been in a bearish trend in the past few days. The coin has formed a descending channel that is shown in blue. It has moved slightly below the 25-day and 50-day moving averages, while the MACD has moved slightly below the neutral level.
The coin has also moved slightly below the 78.6% Fibonacci retracement level, signalling that bears are in control.
Therefore, there is a likelihood that the NuCypher coin will resume the downward trend in the coming days as bears target the lower side of the channel at about $0.3500. Unfortunately, that drop will happen before the merger is completed.
NuCypher price forecast 2025
It is impossible to predict where the NuCypher price will be in 2025 because of the ongoing merger process. After the merger process is complete, the NU token will cease to exist. Instead, the token holders will be upgraded to the new one known as Threshold (T). So, we will update this article in the coming weeks with more details on where we expect the coin to be by 2025.
Is NuCypher a good investment?
NuCypher has had a difficult time in the past few months. As a result, it is ranking among cryptocurrencies has dropped from top 100 to 182. Still, with the merger set to happen, there is a likelihood that investors will start focusing on it.
Keep Network is a privacy-focused infrastructure network for a public blockchain. It allows private data to be used in public protocols without sacrificing confidentiality. It was built by the team behind tBTC, the decentralized solution for Bitcoin on Ethereum. Its KEEP token has a market capitalization of $337 million. Therefore, Threshold will be valued at more than $700 million once the merger completes.
Summary
NuCypher is a small privacy-focused blockchain project that is in the process of merging with KEEP. Like in all merger situations, it is relatively difficult to predict whether its price will do well when the merger completes.