What is Yellow Network's Narrative?
Yellow Network is a decentralized Layer-3 peer-to-peer mesh network designed to transform the crypto trading landscape by enabling cross-exchange and cross-chain trading without relying on block creation or asset bridges. Powered by state channel technology, Yellow Network allows brokers, exchanges, and trading firms to communicate, trade, and aggregate liquidity across multiple nodes in real-time. This decentralized network enhances the scalability of decentralized finance by addressing key inefficiencies in the current trading infrastructure. Unlike traditional systems, which operate in silos, Yellow Network connects centralized and decentralized exchanges, creating a unified, efficient trading environment. Its key features include real-time settlement, improved blockchain throughput, and the ability to perform trades across various blockchains without overloading network nodes. This not only ensures faster transaction processing but also reduces costs and decentralizes the certification process, making it easier for traders to operate nodes. The token is particularly relevant in creating a global decentralized market, solving the problem of fragmented liquidity and bringing more scalability to crypto trading.
Price Analysis and Valuation of Yellow Network
Yellow Network has raised a total of $10 million in funding, which is relatively modest compared to other high-profile blockchain projects. While the amount raised is lower, it reflects a focused and streamlined approach, signaling that Yellow Network is relying on a more specialized narrative to stand out. However, limited funding could pose challenges in scaling its operations and competing against larger projects with deeper pockets.
The current valuation of Yellow Network hovers around $100 million, which positions it competitively among other blockchain projects with a similar cross-chain and cross-exchange narrative. On the positive side, this valuation suggests that the market recognizes Yellow Network's potential in solving inefficiencies in trading across isolated exchanges. However, a downside is that its lower valuation could imply that it’s not yet fully integrated or tested on a larger scale compared to more established networks.
Yellow Network’s fully diluted valuation (FDV) could potentially rise to $500 million to $1 billion if the market sentiment and interest continue to grow. This valuation increase is based on the idea that Yellow Network’s technology could solve a key problem in crypto trading—liquidity and cross-exchange settlement—effectively sparking wider interest. However, this is highly dependent on Yellow Network’s ability to gain adoption in both centralized and decentralized finance sectors.
Disclaimer: Price analysis and valuation are affected by many factors. Theoretical analysis does not mean that the token will definitely reach the envisioned price level. Therefore, the content of this article does not constitute any investment advice. Investors need to do their own research.
