- Quant’s involvement in the development of CBDCs in Europe may secure its future.
- QNT drops to a support range but the chances of a bounce back are low amid prevailing lack of enthusiasm.
As global governments inch closer towards CBDCs, the United Kingdom’s plans have become more apparent and they reportedly involve Quant [QNT]. But what does this mean for the future of this crypto network?
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Recent reports reveal that Quant is currently involved in project Rosalind. The latter is a CBDC development project conducted by the Bank of England and the BIS. The BIS has ties to over 60 central banks.
This means Quant is likely contributing to CBDC developments that may traverse roughly 63 countries.
? $QNT CBDC Confirmation | A thread ?
Today Quant was confirmed to be involved with Project Rosalind, a BIS/Bank of England CBDC project.
Why is this such a big deal?
Let's dive in!
?? 1/5 pic.twitter.com/VjwifFtkU3
— Hungarian Horntail (@Threetoesloth1) May 9, 2023
The potential implication is that Quant’s involvement in CBDC development may contribute to robust demand for its services. If that turns out to be true, then we can expect to see a surge in liquidity flowing into the Quant network, backed by real-world utility.
Will Quant’s CBDC involvement trigger demand for QNT?
There is no doubt that Quant may derive significant growth from supporting governments’ CBDC developments. As such, its native cryptocurrency QNT might benefit although this will likely be in the long term. But how has it been fairing in the short term?
Quant’s short term outlook remains bleak. On-chain metrics reveal a lack of excitement in the crypto market in the last few weeks. For example, its volume was trading within the same range, with the last spike observed just before mid-April.
Source: Santiment
Additionally, whale holdings have been relatively stable in the last 3 weeks as indicated by the lack of change in the supply held by top addresses. However, some change is expected considering QNT’s latest performance and current position.
QNT was on an overall downward trend since the last week of January. It has extended the same trend in the first 10 days of May and it is now trading at a noteworthy support range.
Source: Santiment
The current market conditions underscore low demand hence there is a chance that QNT might break below the support. It still has some room before entering into oversold territory.
How many are 1,10,100 QNTs worth today
On the other hand, there was increased activity in the last three days. Active addresses have been increasing since 7 May.
Source: Santiment
QNT’s MVRV ratio was on a downward trajectory and it recently fell to a new 4-week low. A bit of an uptick, especially in the last 24 hours, confirms that there is some buying pressure at the support level. But whether it will secure enough bullish pressure is still a tossup.
