One of the most important factors in the long-term success of a blockchain platform is having an active community of supporters and developers that work to showcase the capabilities of the network by creating new products and interacting with projects on the protocol.

Zilliqa (ZIL) is 1 project that saw its price surge throughout Baronial as developers built out its ecosystem and made improvements to the protocol.

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $0.05 on July xx, the price of ZIL proceeded to rally 145% to a swing loftier at $0.1244 on Aug. 24

ZIL/USDT 4-hour nautical chart. Source: TradingView

Three reasons for the bullish momentum seen in ZIL are a rapidly growing ecosystem that is attracting new participants, the launch of nonfungible token (NFT) projects on the network, and attractive staking and decentralized finance opportunities that remove tokens from the circulating supply.

A rapidly expanding ecosystem

The well-nigh recent quarterly report from Zilliqa shows that the projection's ecosystem now has more than than 180 partners and projects edifice on the network, indicating that there is pregnant interest in the capabilities of the protocol.

Zilliqa ecosystem. Source: Zilliqa

As the ecosystem grows, the number of new users as determined by new wallet addresses has continued to increase past an average of 150,000 addresses per month.

NFTs excite the community

A second reason for the uptick in ZIL price is the launch of NFT projects on the network.

The NFT sector dominated headlines all throughout August, and transaction volumes on platforms similar OpenSea surged to a record $3 billion.

High fees on the Ethereum network take forced crypto users to migrate to competing networks that offer decentralized finance (DeFi) and NFT trading in a lower-cost surroundings.

Some of the existing and soon-to-be-launched NFT and gaming protocols on Zilliqa include Unicuties, DeMons, Heroes of Lowhelm and Blox.

Related: Evrynet'south $7M raise highlights institutional ambition for DeFi

DeFi and staking features decrease ZIL's circulating supply

Another reason for the rising forcefulness seen in Zilliqa is its growing DeFi ecosystem and attractive staking rewards that offer high-yield returns for users.

ZilSwap, the network'due south ascendant decentralized exchange, has more than $61 million locked in its protocol, and information technology regularly engages the community through governance votes aimed at improving the reward construction, liquidity and volumes.

ZIL tokenholders can also stake their tokens on the network and earn 12.79% APY, and according to Zilliqa, 34.22% of the circulating supply is currently existence staked on the network.

According to the most contempo quarterly written report, 14% of "tradable" ZIL is locked upwardly in DeFi, leaving 51.2% of the available supply in circulation.

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