Phala Network (
$PHA ), theĀ native tokenĀ of the decentralized cloud computing protocol Phala Network, soared 300% at the end of December 2024 amid new upgrades and moreĀ centralized exchangeĀ (CEX) listings.
According to data fromĀ CoinMarketCap, PHAĀ gained 300%Ā in a week, surging over the $0.59 mark. The token had an impressive year-on-year growth of more than 330%.
As of December 30, 2024, the token is trading at $0.51, up by more than 7% over the past day. PHAāsĀ market capĀ currently stands at over $400 million, securing its position as the 181st largestĀ cryptocurrencyĀ by market cap.
PHA is the 20th largest token in theĀ artificial intelligenceĀ and big data category by market capitalization. With aĀ circulating supplyĀ of 772.16 million tokens and a total supply of 1 billion, the Fully Diluted Value (FDV) of PHA is estimated at around $502 million.
Techopedia explores what Phala Network aims to do in the AI-crypto sphere.
Key Takeaways
Phala Networkās native token, PHA, surged over 300% in December 2024 and achieved over 330% year-on-year growth.
The growth comes on the back of new upgrades and more listings.
The recent Phala 2.0 upgrade introduced a GPU-based network for enhanced AI processing power.
Phala is also launching a Layer 2 rollup on Ethereum to further improve scalability and AI app deployment through Phala Cloud.
The token has also been recently listed on Bitget.
What is Phala Network (
$PHA )? Why is it Surging?
Phala Network is a privacy-focusedĀ blockchainĀ platform that combinesĀ artificial intelligenceĀ (
$AI ) and blockchain to create an execution platform forĀ Web3Ā AI. In essence, it allows AI to interact with blockchains while making Web3 accessible to a wider audience.
The networkās āmulti-proofā system aims to simplify AI execution by giving developers the tools to create secure and incorruptibleĀ AI agents. These agents work closely with on-chainĀ smart contract, enabling AI-powered decentralized applications.
The native token of Phala Network is PHA, which is used for rewarding compute providers, running AI Agent Contracts, participating in DAOĀ governance, andĀ stakingĀ to secure the network while earning rewards.
PHAās recent surge comes on the back of a series of positive developments. For one, Bitget, a leading crypto exchange, listed Phala Network (PHA) in its Innovation, AI, and DePIN Zone, according toĀ an official announcement.
Trading for the PHA/USDT pair began on December 27 at 11:00 UTC, with deposits already open and withdrawals available from December 28 at 12:00 UTC.
Bitget also ran a 7-day promotion, allowing users to purchase PHA with credit or debit cards without transaction fees.
Phala Network Ships Phala 2.0 Upgrade
What is Phala Network (PHA)? Why is it Surging?
Phala Network is a privacy-focusedĀ blockchainĀ platform that combinesĀ artificial intelligenceĀ (AI) and blockchain to create an execution platform forĀ Web3Ā AI. In essence, it allows AI to interact with blockchains while making Web3 accessible to a wider audience.
The networkās āmulti-proofā system aims to simplify AI execution by giving developers the tools to create secure and incorruptibleĀ AI agents. These agents work closely with on-chainĀ smart contract, enabling AI-powered decentralized applications.
The native token of Phala Network is PHA, which is used for rewarding compute providers, running AI Agent Contracts, participating in DAOĀ governance, andĀ stakingĀ to secure the network while earning rewards.
PHAās recent surge comes on the back of a series of positive developments. For one, Bitget, a leading crypto exchange, listed Phala Network (PHA) in its Innovation, AI, and DePIN Zone, according toĀ an official announcement.
Trading for the PHA/USDT pair began on December 27 at 11:00 UTC, with deposits already open and withdrawals available from December 28 at 12:00 UTC.
Bitget also ran a 7-day promotion, allowing users to purchase PHA with credit or debit cards without transaction fees.
PHAās price surged at the end of December 2024. Source: CoinMarketCap
Phala Network Ships Phala 2.0 Upgrade
On December 25, the projectās developer announced āa Christmas giftā by shipping Phala 2.0, bringing a major upgrade to its version ofĀ decentralized, secure computing by moving from a CPU-based to aĀ GPUĀ network.
The team said that the boost in processing power and efficiency allows forĀ even more demanding AI tasks, while integratedĀ NvidiaĀ Confidential Computing (TDX) keeps sensitive GPU operations secure, even if the host machine is compromised.
āThis provides developers with an unparalleled combination of high computational performance and robust security, making Phala the ideal platform for AI and privacy-preserving applications.ā
Phala is also launching aĀ Layer 2Ā rollup onĀ EthereumĀ in partnership with Succinct Labs and Conduit. āThis rollup delivers fast finality, low-cost transactions, and cryptographic security,ā the team wrote.
By combining its infrastructure withĀ ZK proofs, Phala aims to streamline Ethereumās scaling and make it easy to deploy AI-ready, privacy-focused apps through Phala Cloud. The team added:
āPhala 2.0 not only bridges Web2 and Web3 but also sets a new standard for scalable, secure, and verifiable computation solutions in the blockchain space.ā
Ways Phala could be used might be enabling AI to use DeFi platforms ā perhaps trading, staking, lending, or swapping based on conditions that suit the human trader.
Alternatively, companies could train AI models on confidential data without exposing the dataset, using privacy and decentralization to help increase anonymity while staying compliant with privacy regulations.
The Bottom Line
The recent surge in PHAās value can be attributed to a combination of positive developments.
Key factors include the launch of the Phala 2.0 upgrade, which introduced advanced GPU-based computing capabilities, and its integration with Ethereum through a Layer 2 rollup.
PHA is riding the wave of the combined uses of crypto and AI. With Phala 2.0 available for use, it is now up to creators to find and execute use cases in the wider world.
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