Spark FLR token is the native token that is used to carry out transactions on the Flare network. Flare network is a new protocol that XRP has added to its ecosystem. XRP expects this network to add decentralized finance of DeFi functionality to its ecosystem. A majority of DeFi applications run on the Ethereum platform. With the Flare network, XRP will also be able to support smart contracts and create a two-way bridge that will link them up to existing Ethereum applications.
From the onset, you can see the connection this token has with already established cryptocurrencies. This connection alone is a good reason to invest in Spark FLR. However, you may need to know more about the coin first before taking that important step. Here are a few reasons why investing in FLR is a good idea.
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Reasons Why You Should Invest In Spark
There are all kinds of reasons why you might want to invest in Spark — probably some you’ve never considered. Here are 15 that we found. And If you are a long-term investor, Spark could be a very good investment for you.
1. Connection to XRP
Ripple, or rather XRP, is the one of the largest cryptocurrency by market capitalization.
The Spark FLR token is directly connected to XRP, considering that the flare network protocol is part of the XRP ecosystem. Spark in itself may not have a large market cap, but the mere reason it is a part of the XRP network is a good enough reason to invest in the token.
A high market cap is a good indicator of the strength of a particular token. It shows that an asset is stable enough to withstand turbulent forces that may hit the market. In XRP’s case, it has managed to withstand the hits the digital currency market has experienced in the recent past. Investors consider coins with high market caps as low-risk investments. Spark FLR token can cushion itself on XRP's market cap, making it a good investment option to have in your portfolio.
2. Spark FLR has a Strong Supporting Team
Cryptocurrencies are dependent on their creators and those that are left to do the maintenance work. The team behind a coin determines whether it is going to last or fizzle into oblivion. If it has a strong team, then its chances of success remain high. A strong team can adapt to changes and new developments, keeping a token alive even as the industry introduces new technologies.
Sean Rowan and Hugo Philion developed the Flare network. The two had an intention of solving two main blockchain problems. While not getting into the details of those problems, you can see that the project has serious individuals behind it and is focused on solving itching needs in the digital currency market.
In addition to these two, there are also the XRP developers who most certainly are working with Flare developers to get solutions to the identified problems. Should you invest in Spark FLR, you will do so with the confidence that the project behind and the team supporting it are here to stay.
Check Out: Is It Worth Investing In Spark FLR?
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3. Trustworthy and Predictable Governance System
A trustworthy and predictable governance system is vital for maintaining the security of any network. With the flare network, it is already clear who the holders of the spark tokens are. There has already been an airdrop where holders of XRP tokens have received free Spark tokens depending on the number of XRP tokens one has.
Any developments that are to happen on the Flare network will be after a consensus among those holding the Spark tokens, thus ensuring that a few people do not control the entire network.
With this security in place, users’ confidence to use these tokens on the Flare network and consequently on the XRP ecosystem will get a boost and therefore increase the value of the Spark tokens.
The Spark network will also be free from any attacks due to the transparency already established by the system of governance.
4. Investors to pay gas Fees
dApp or decentralized apps’ developers on the Flare network will be required to pay Gas fees, just in the same manner as on the Ethereum network. Paying Gas fees adds value to both the tokens and the network on which those tokens are used. It consequently increases the price of the token. Creating dApps has only been mainly happening on the Ethereum network, but the network is yet to overcome its scalability challenges.
Now that XRP will have the same dApp and smart contracts functionality thanks to the Flare network, it might just be a better option for dApp developers. XRP ecosystem is not plagued with scalability problems. If developers move to creating these apps on the XRP ecosystem and paying the gas fee to the Flare network, it will significantly increase the value of the Spark FLR token, which is the native token on the Flare network. This is another one of the reasons to invest in spark FLR in the long term.
5. Spark FLR to Benefit from Ripple’s Aggressive Expansion
Ripple is quickly replacing the traditional bank methods of transferring money. Most transactions are mostly through swift transfers. These transactions are not only slow but are also costly. You are also limited to the amount of money you can transfer. Your money is also at the mercy of the bankers, who also determine the exchange rate if your transaction will involve several different currencies.
Ripple is taking advantage of this by allowing people to settle transactions fast and at meager costs. Flare network, now a part of the Ripple ecosystem, benefits from its expansion as more and more people adopt its use. Several reputable financial institutions have already adopted Ripple, and more are joining the bandwagon.
Spark FLR, Flare’s network’s native token, will benefit from this expansion, and its value is bound to grow. This makes this coin a viable investment option.
6. Listed On Multiple Exchanges
Like its counterpart XRP, Spark FLR is also listed in multiple exchanges. The exchanges on which a digital currency is listed matters a lot when it comes to investing. The more the exchanges, the better, since it would be accessible and hence keep its demand high, especially if it is a popular coin.
The more its demand, the more its value grows. Though a relatively new coin, Spark does not seem to have the problem of low listing.
Spark follows the footsteps of XRP closely, considering that it plays a significant part in its smart contract capabilities. Multiple exchange listing means that you can easily buy and sell these tokens, especially when you are a short-term trader. When a token is listed on many exchanges, it also makes it very liquid. Should you invest in Spark FLR, it will be very easy to sell your tokens every time you need to liquidate them.
7. Spark has Practical Use Cases
Spark is the native token in the Flare network. The Flare network is now a part of the Ripple ecosystem enabling the system to support decentralized finance functionalities. Ripple, on the other hand, is trying to make banking services more efficient and affordable. XRP might not replace the banking system entirely, but it will be a part of the hybrid system that is bound to arise from these developments.
Banking clients will now be in a position to carry out transactions quickly and do it in bulk and at very affordable prices. There will also be a lot of decentralized applications within the XRP ledger, thanks to the Flare network and its Spark token.
As the value of XRP, the token that clients will use in their transaction, goes up, the Spark token will enable the development of those apps. This possibility makes Spark a viable token to consider adding to your crypto portfolio.
8. Spark has had More than Three Years of Development.
The Flare network was first developed in 2017. Ripple, the ecosystem this network supports, first invested in the network in the same year. The network has seen continuous development since then, with upcoming technologies getting added as the network expanded. There is a lot more you should know about this token.
The expansion has seen XRP holders realize their dream of having smart contracts in the XRP ledger. This development has also been in line with the Spark token, the currency that runs the activities in the Flare network. This development has seen the Spark token increase in value from a few cents at its onset, surpassing at one time the two-dollar mark. With time, this token will continue to gain in value as it gets more uses in the Flare network and the XRP ecosystem.
The fact that the developers have been at it for more than three years shows the veracity and seriousness of the project. So, if you are still asking yourself why you should invest in Spark FLR today, then this should be one of your reasons. You will continue growing with it as the network continues to stabilize.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
9. Spark is Getting Gains from Expanding Crypto Adoption
The Spark token came into existence back in 2017 with the development of the Flare network. At the time, the crypto market was gaining traction, with Bitcoin shooting exponentially and pulling the rest of the digital cryptocurrencies with it.
Like XRP at the time, Spark has also seen some growth but has not been popular since it was only released to the market recently. Despite that, it has recorded an all-time high of $2.45, which was more than double its inception price. If Ripple continues to make inroads into the banking industry, then Spark is going to grow at almost the same rate as XRP. Projections show that it could quickly surpass its all-time high in less than a year from now. This is one good reason why you should invest in Spark FLR.
10. Spark Already Has a Strong Support
Having been launched in 2020, Spark was quickly gathering momentum and rising quickly. FLR token started trading only as late as January 2021. It has quickly gained traction to reach its all-time high of more than two dollars, thanks to the support it has had from XRP holders. Keep in mind that XRP is a very popular cryptocurrency, so you can expect the support FLR is getting to be immense and continue growing with time.
As soon it was launched, the XRP community agreed to have every holder of XRP as of 2020 receive an equivalent FLR of the XRP tokens they had in control. This free donation is called an ‘airdrop.’ Though it dipped FLR price for a while, it quickly gained its momentum and continues to grow to date. With the support it's getting from the XRP community, the token continues to grow, making it a good investment option.
11. Spark has had an Impressive Upward Trend
After being launched in 2020 and started trading at the beginning of 2021, FLR has had a fairly impressive though not as stable upward trend. The coins began trading at around $0.232 and had a trading volume of more than $66,000. In the first two months, its price fell by a small margin, but its trading volume continued to grow. The trading volume doubled to more than $272,000.
This demand saw its price bounce back and started rising sharply. By March, the FLR price was almost hitting $1 at $0.7. By April of this year, the token had already hit its all-time high of $2.445.
In just four months, the price of the Spark token had risen by an impressive 953.8%. That means, if you had invested $100 in January, by April, you would have made a profit of more than $900.
Though the price has dipped again to about $1.02, this token has some potential of making money for short-term traders. It is still too early to call for long-term traders since there is no enough information regarding the coin.
12. Spark is a Fairly New Project
As stated a couple of times, Spark is a very new coin running on a fairly new project. The Flare network idea began in 2017, making it just about four years old. As with most new projects, there are always prospects of making money, though not always.
With the Flare project, there is a good chance of making some money, considering that it is riding on the back of an already established and successful project. Though not a guarantee, if you get in early in advance and have a few tokens, you may end up with a good profit after a while.
You can either invest in the Spark FLR tokens and hold them or invest in the technology that looks fairly promising.
Read Also: How to Buy Spark - Beginner's Guide
13. Spark FLR is Compatible with Multiple Wallets
Investing in any cryptocurrency is very risky, especially if you do not know how to store your tokens. Most newbies lose their tokens when they live them on the exchanges from which they buy them. A lot of fraudsters have perfected the art of hacking into these exchanges and stealing unprotected coins.
The best place to keep your tokens, especially if you are investing long-term, is a cold storage wallet. This kind of wallet is not connected to the internet, thus cannot be hacked.
Fortunately for Spark investors, several wallets are already compatible with Spark, so you do not have to worry about where to keep them when you invest in the long run. Though not a reason to make you some profit, it is still vital that your investment stays secure.
14. Spark FLR has a Low Nominal Price
Spark FLR has a low nominal price as compared to other established coins such as Bitcoin and Ether. If you want to invest in the higher value coins as those just mentioned, you would need a lot of money to do so. Otherwise, you would just have to settle with a fraction of the coin.
It is different from Spark FLR and other upcoming altcoins. Just like Bitcoin was about a decade ago, Spark FLR is also at that point where you could buy the tokens in bulk considering its current price. If you had bought these coins in January 2021, a $100 would give you just about 450 tokens. At the moment, the price of this coin oscillates between $1.00 and $1.20. you can still get a fairly good number of coins with just $100.
Projections indicate that the price of Spark, if the project continues to gain traction, would be about $5 by mid-2022. Your $100 investment could quickly become $500 if it follows the expected upward trend. This is another good reason to invest in Spark FLR. You can consider having just a few coins as part of your portfolio.
15. Spark FLR has a Limited Supply of Coins
The laws of demand and supply also apply in the cryptocurrency industry. If a coin is in demand, its price is bound to rise. If it is limited in supply, the price will rise even higher with increased demand. As seen earlier, the trading volume of Spark FLR more than double in just two months. That is an indication of increased demand that spiked the price of the token to its all-time high.
The current total supply of Spark tokens is a mere 450,000 coins. This number is too low compared to its counterpart XRP with a total supply of 100 billion coins.
With a limited supply of coins and an increased demand, this token could shoot in just a few months. If XRP continues getting integrated into the banking sector, Spark FLR, the native token used on the Flare network that enables smart contracts on the XRP ledger, is going to reap the benefits of this adoption.
It would not be a surprise if the price of this token rise above $100 in less than two years. Coins with far less practical uses have reached this mark and surpassed it. Spark FLR has a practical use and a serious one, for that matter. So it would not be just a matter of speculation, but real value. Having just a few tokens in your list of crypto investments could turn into a fortune, but of course, you must not jump the gun and pour everything in it.
The big question remains, why should you invest in Spark FLR today? This article has enumerated a few reasons to invest in Spark FLR that you could consider.
Just to recap. The Flare network that is to support smart contracts on the XRP ledger brings value to both XRP and Spark FLR tokens. Both tokens are projected to increase in value as more people start using smart contracts as well as other services on XRP.
This price rise will not happen in a whiff. As a long-term investor, you may have to be just as patient as early Bitcoin investors. There is still some work that Ripple has to do on its blockchain for developers and investors to get the confidence they require to invest in the new technology and release their smart contracts on this ledger.
As the developers continue integrating the Flare network to the XRP Ledger, you may expect the price of Spark FLR to slump a bit in this process since it is still not being used actively. However, with time, and as smart contracts become a consistent phenomenon on that ledger, more users will begin paying to execute their smart contracts paying Spark FLR as gas fees.
By this time, the price of the token will be on its way up. If you believe that XRP is the future of banking and the transfer of money, then you can buy a few of these coins, or if you are a risk-taker, just have them in bulk while the nominal price remains low.
Conclusion
Like any other investment, you should always take extra care when investing. Do your due diligence before committing yourself. Keep in mind that cryptocurrency investments are extremely volatile. If possible, only invest money that you would be willing to lose. It does not mean that you will lose it, but it is good to always be on the safe side with crypto investments.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.