Animoca Brands becomes a validator of the MultiversX PoS network

Animoca Brands, leader in the Web3 world and in the blockchain gaming sector, has officially become part of the MultiversX PoS (Proof of Stake) network as a validator. This step marks an important evolution for both companies: Animoca strengthens its position in the blockchain ecosystem, while MultiversX benefits from a high-profile partner.

In this article, we will explore the meaning of this partnership, the role of validator in the MultiversX network, and the future prospects for EGLD, the native cryptocurrency of the platform.

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MultiversX welcomes Animoca Brands as a blockchain validator

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MultiversX has just introduced Animoca Brands as a validator within its rich ecosystem of web3 infrastructures. The collaboration between the parties aims to make the blockchain more accessible, joining Animoca’s over 540 Web3 companies to the network, which offers an advanced infrastructure for the future of decentralization. The new staking pool entrusted to the partner already boasts a demand of 100,000 EGLD, equivalent to about 2.1 million dollars.

Animoca Brands is a well-known name in the field of blockchain-based games, with a solid reputation built over time thanks to investments in platforms like OpenSea, Decentraland, and The Sandbox. With a vision oriented towards an open and interoperable metaverse, the Hong Kong company has attracted a large number of developers and investors over the years. It has also supported the growth of numerous startups in the sectors of games, digital collections, and virtual experiences.

Its entry as a validator in the PoS (Proof of Stake) network of MultiversX opens the doors to new potential synergies that embrace gaming and digital entertainment. Animoca Brands will be able to influence, through its delegated voting power, the management of the chain and future governance decisions. Added to all this is a symbolic value as there is a contribution not only economic, but also oriented towards the security and improvement of the cryptographic network.

Yat Siu, co-founder and executive chairman of Animoca Brands, commented on the good news by stating the following:

“Combining the leadership of Animoca Brands with the scalable network and sovereign chain infrastructure of MultiversX, we are eager to promote the development of the Web3 industry.”

At the same time, Beniamin Mincu, CEO of the MultiversX Foundation, also expressed his enthusiasm for the collaboration:

”It’s fantastic to have Animoca Brands joining the ecosystem as a validator and exploring these innovations to drive the adoption of Web3 in gaming and entertainment.”

How the role of the validator works: the case of the MultiversX ecosystem

The case of Anomica Brands taking on the role of validator for MultiversX represents a concrete example of how companies can actively contribute to the security and decentralization of a blockchain network. Just consider that Ethereum, according to data from Dune Analytics, has over 1 million validators committed to ensuring the proper functioning and integrity of the network. But what exactly does it mean to be a validator?

Essentially, a validator is a node within the network that has the task of confirming and validating transactions. In exchange for this work, validators receive a reward, usually in the form of the blockchain’s own tokens, which for MultiversX is EGLD. In the Proof of Stake system, validators must hold a certain amount of the network’s cryptocurrencies to be eligible for the validation of transactions. The more tokens one holds and “puts at stake“, the higher the economic commitment demonstrated (game theory) and consequently the greater the probability of being chosen to validate a block.

MultiversX boasts a network of over 3,330 different validator nodes, within which we find prominent names such as Binance Staking, Luganodes, P2P.org, Ledger, Figment, Deutsche Telekom and many others. To date, the network has attracted investments of 15.48 million EGLD, equivalent to 55% of the supply, with approximately 190,000 active users. The annualized yield for staking stands at a 7.34% APR. From today, users will be able to choose to delegate their EGLD to Animoca Brands as well.

It should also be noted how MultiversX has recently implemented version 4 of staking (Staking V4), which has significantly improved the accessibility and management of the network. Thanks to this update, validators can enter the system without having to wait for other nodes to leave the network, as was the case in the previous queue-based system.

Analysis and forecasts of the cryptocurrency EGLD

EGLD is the native cryptocurrency of MultiversX, designed to facilitate transactions within the network. The cryptocurrency is used both to pay transaction fees and as an incentive for validators who help maintain the security and efficiency of the blockchain. Its market capitalization is 586 million dollars, making it the 98th currency according to the ranking of CoinMarketCap.

Since its launch in August 2020, EGLD has experienced rapid growth, immediately attracting the attention of investors. In the first six months of trading, its value rose over 200 dollars per token, marking an increase of about 10 times compared to the initial listing price. In November 2021, during the peak of the bull market, it reached an all-time high of 544 dollars, only to enter a phase of constant depreciation. Today it is traded at 21 dollars, thus erasing all the gains accumulated in recent years.

The price action of this cryptocurrency is currently skewed to the downside, with prices consistently remaining below the 50-week EMA. In the past year, there have been various attempts to restart upward, but they have been promptly absorbed by the orsi. If EGLD were to surpass the 55-dollar threshold again, with a higher weekly close, it could attempt to trigger a new bull phase.

In the event that MultiversX manages to generate hype around EGLD again, the cryptocurrency could regain ground and attract new investors, pushing the price towards key resistance levels. At the moment, however, it is still too early to talk about bull price scenarios, considering the general market outlook and the persistent bear pressure.