Over the past year, non-fungible tokens exploded in popularity. With exponential growth, however, investors were exposed to the limitations of Ethereum. Its inability to scale effectively, as well as the large network fees, pushed many investors to other blockchains (like Solana), trying to find better ways to trade NFTs.
Today we look at one of the most promising projects that aim to make Ethereum once again the go-to blockchain for NFTs – Immutable X. We explore why top crypto funds have backed the project with more than $400 million dollars, and we give our own Immutable X price prediction.
Let’s get started!
What is Immutable X?
Immutable X is a Layer 2 protocol built specifically for NFTs. More specifically, It is a ZK-Rollup, layer 2 scaling solution for non-fungible tokens on the Ethereum blockchain. It helps investors interact with NFTs using lower fees and increased scalability (both for minting and trading). Both of these problems are linked to the current PoW architecture of Ethereum, which allows a small number of transactions per second, making it unable to scale with the demand of the sector.
Immutable X is formed through the partnership of two companies:
- Immutable, a popular gaming company, commonly known for their P2E flag game God’s Unchained
- Starkware, an Israeli-based company that provides scalable blockchain tech for (decentralized) applications. Both companies have raised tens of millions of dollars from established crypto funds and each one is valued in the billions.
Immutable’s gaming and NFT experience, paired with Starkware’s scaling knowledge resulted in Immutable X. The company chose to focus on Ethereum as it is the foundational blockchain of NFTs and DeFi, having already attracted most of the infrastructure for the future. If you want to learn more about the Immutable X make sure you watch this video:
Basic info on IMX token
IMX, the governance token of Immutable X, is currently far below its ATH, mainly due to unfavorable market conditions. Still, we see that the value of the tokens is more than 10x higher than their ICO price, with the full unlock of retail ICO tokens completed in April 2022.
The launch of IMX, which occurred in the last quarter of 2021, was hosted on Coinlist, one of the most popular platforms for ICOs. The event was massively oversubscribed, and there were limits in place for each participant. Due to this process, it is safe to say that at least during the public sale, we didn’t see whales scoop up large parts of the supply.
Currently, IMX is listed in some of the most liquidity-rich and well-established exchanges, with the majority of trading volume occurring on Binance. Note that the image below is a screenshot and therefore does not show a dynamic price for the token.
The token unlock schedule for different departments of the project seems to be organized in a favorable way. IMX tokens for early-stage investors, the foundation, project development, and ecosystem growth will gradually enter circulation over a 4-year period, which could be a bullish catalyst for the near, and mid-term.
Immutable X price prediction
When making an IMX price prediction, we need to keep in mind that market conditions are unpredictable. Therefore, any attempt to make a forecast is simply speculation based on historical performance. Let’s have a look at some of the most important timeframes in the mid and long-term.
Immutable X token price prediction 2022
Up until this point, 2022 feels rather uncertain in terms of market direction. While the whole market seems indecisive, there is a lot of geopolitical uncertainty at play. Most of the events are acting as free advertisement for the benefits of the crypto market (e.g. Canadian bank accounts frozen, Russian sanctions, seizing of Russian gold, record inflation, and more). It is also worth mentioning that, currently, Bitcoin balances on exchanges are at an all-time low, with most investors withdrawing their funds to cold storage, thus making the potential of a supply squeeze more realistic.
Most people would argue that, in such an unpredictable environment, it is hard to make predictions. Yet, we tend to be bullish for the industry as a whole. We also think that projects which solve key problems in NFT markets will see an increase in demand, and IMX is one of them. After all, the number of active wallets holding IMX continues to increase steadily.
As we are slowly bringing Metaverses to the mainstream, and with the merge of ETH 2.0, we can expect the whole market to experience growth towards the third and fourth quarters of the year.
As for price targets, we’d say that IMX should at least be in the top 50 coins by market cap (if not for its utility then for the massive amount of funding ready to deploy). To reach this point at current price levels, it would need to see its market cap grow by 700%, which would bring the price of IMX to $11. We do, however, believe that the market as a whole will experience growth as well. Hence, our targets by the end of this year lie closer to $25 per IMX.
IMX token price prediction 2023
The growth we can expect to see in the later part of 2022 should continue into 2023, as inflation numbers should once again come in double digits. At this point, at least some countries will be experimenting with CBDCs, and people will notice the lack of privacy that comes with it. As a follow-up, a whole new batch of investors will join crypto, increasing demand for the market, and thus the prices in cryptocurrencies.
As for Immutable X, this can go both ways. The successful merge of Ethereum to PoS might decrease the need for L2 blockchains for transaction settlement in the NFT markets, as fees decrease and scalability becomes easier. Yet, the massive adoption of Metaverses, blockchain gaming, and NFTs, will likely create new issues that are hard to predict. Hence, L2s might still have their place here, and the brand will continue to grow.
Even if the utility and fundamentals of IMX become less important after the Ethereum merge, we still think that a bullish Immutable X price prediction is in play. Generally speaking, we estimate that IMX will be worth $35-$50 per coin.
Immutable X price prediction 2024
In 2024, all eyes will be on the next Bitcoin halving. There is a non-zero chance that we will also see the IMF tighten its regulatory attempts of Bitcoin, and this will be directly related to the demand generated through the halving. Due to this, it is hard to understand how the market will decide to move.
At this point, we believe that the market should be worth at least $10 Trillion, and institutional participation has made sentiment more positive. We also think that NFTs are now part of daily life. Games, events, collectibles, are all upgraded with non-fungible token functionalities, which further enhances the ability to create and earn digitally scarce assets. Immutable X should be involved in the development and support of many such assets, and we thus expect it to remain a relevant brand.
As for price, it is rather hard to say, as the direction of the market can go both ways. On the one hand, we may see ETH 2.0 decrease the need for L2s on Ethereum, and the regulatory changes making it harder to trade cryptocurrencies. In this bearish case, IMX could retract to its peak 2022 levels. On the other hand, we may see IMX increasing its use cases, and the parent companies behind it grow their offer and audience. In this bullish scenario, we may also see NFTs continue their exponential growth, and IMX becoming one of the foundational projects to support the further growth of Ethereum. In this case, IMX could easily double in value, and we could see it being worth anywhere from $70-$100.
IMX price prediction 2025
Any attempts to give an IMX price prediction so far ahead is pure speculation. Therefore, please do your own research and do not base your investment decisions based on this prediction. For us, the success of IMX depends on multiple factors. These include:
- The growth of crypto markets, which depends on regulatory changes;
- The need for scalable and cheaper solutions to interact on Ethereum;
- Proper distribution of Imuutable’s finances to help the company grow;
- Uncertainty in global markets, including the ability to safely store assets;
- The use cases and byproducts of Immutable X in the future.
Based on the outcome of the above, we could either see IMX growing to new highs or remaining stagnant while other coins take its place. Our bearish scenario points at a $20-$25 price, while bullish cases could see it increase to $150 or higher. Note that, by this point, there will be no more locked tokens that now massively restrict the supply, and we will thus need to see a massive increase in demand to absorb the tokens of early investors, team, and advisors.
Is Immutable X (IMX) a good investment?
This brings us to probably the most important question – whether IMX is a good investment compared to all other options out there. To say the truth, this is a hard question to answer.
- First and foremost, it is important to recognize that a project’s fundamentals or early backers do not guarantee the success of its token. Look at Dogecoin, Shiba Inu, Bored Apes, and others. What truly determines the success of a project is the ability to build a strong community, and to this point, we have not seen Immutable X paying a lot of attention to this.
- Secondly, as mentioned above, we need to keep in mind that the use cases of Immutable X are best utilized under a PoW Ethereum. With ETH going through a bunch of changes this year, like shifting to Proof of Stake consensus, as well as sharding, there might be less need for a solution like Immutable X.
- Thirdly, we must not forget about competitors (other L2 ZK-Rollups) which may outperform Immutable X.
Overall, the success of IMX is directly related to the continuous growth of NFT adoption by retail and institutions. At the moment, many are worried that we are going through a bubble, which may have a negative impact on projects related to the subsector. If Immutable X is unable to generate hype and build a community, it might experience stagnation.
So, should you buy IMX? In our opinion, it’s best to first see how the token will behave after the Ethereum merge. It is also a good idea to track how their massive funding is spent, and what amount is given to marketing initiatives. If both seem favorable, it might be a good idea to buy a position.
Immutable X is one of the most popular projects to join the crypto space in the last year. The company wants to improve accessibility to NFTs through its bridge, and we believe that this will have a massive impact on its future value.
To summarize, let’s briefly go through our price predictions for the years ahead:
- Immutable X prediction 2022: $25
- IMX prediction 2023: $35-$50
- Immutable X price prediction 2024: $70-$100
- Immutable X price prediction 2025: $150+