Everscale price up 400% since the start of the year; team explains drivers

According to Coingecko, the native token of the Everscale blockchain (EVER) has risen by more than 400% since the start of 2023. Over the last seven days, gains exceeded 140%.

On January 31, the EVER price reached a local high of $0.17, after which the cryptocurrency’s price corrected and, at the time of publication, stood at $0.123. Meanwhile, on December 29, 2022, the asset’s price hit an all-time low of $0.0245.

In ForkLog’s interview, Broxus co-founder Sergey Shashev explained the reasons for the price rise:

“Historically, it has always been the case that Everscale excels at technology, but not at business. We launched the network without investments or funds. Now a strong partnership between Everscale and Venom Foundation is forming. Venom Ventures Fund announced investments in Everscale. The partnership allows us to develop our technologies and ecosystem despite crypto-winter. I am confident that with the development of cooperation with Venom, the number of projects and the liquidity in both ecosystems will grow. We are constantly seeking promising development teams willing to participate in building the ecosystem. In return, we are ready to offer technical consultations, additional liquidity and grants, and in the future investments to help these projects grow and develop.”

The Venom Ventures Fund, recently launched in the UAE in partnership with Iceberg Capital, on January 31 published a press release, announcing a strategic partnership with Everscale and investments in the project of $5 million.

“These investments are aimed at developing projects and teams around the technologies we are currently focused on. In particular, we are talking about [the blockchain] Venom and its ecosystem, which they plan to launch soon and for which Everscale is a potential layer-2 solution,” — said Peter Knez, chair of Venom Ventures Fund and former head of investments at BlackRock.

The overall size of Venom’s venture fund stands at $1 млрд.

As Shashev noted, the partnership helps grow both ecosystems and increases the number of potential projects:

“Everscale can receive part of projects from Venom’s funnel, since not all projects can come there because it is a regulated blockchain platform. In turn, projects from Everscale with strong growth can easily launch on Venom. Look at EVM networks — there are constant project migrations and mirror launches. Now such a setup is possible on TVM.”

Another reason given for the price rise is reduced selling activity. According to him, over the past year and a half a large amount of EVER coins entered free circulation, dumped by holders into the market.

“First, the market overhang has been exhausted; second, we changed the payout system, for example, distributing funds to partners not in EVER, but in special LEVER tokens. All this has significantly reduced price pressure,” he explained.

The Everscale network was launched in May 2020 by a group of companies and development teams, some of whom contributed to the creation of the core components of Telegram Open Network (TON). The blockchain was named Free TON, using TON’s public code in its protocol.

In November 2021, the project community decided to rename rename, citing legal issues related to the Telegram brand and the large amount of new code.