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Phala Network (PHA), the native token of the decentralized cloud computing protocol Phala Network, soared 300% at the end of December 2024 amid new upgrades and more centralized exchange (CEX) listings.
According to data from CoinMarketCap, PHA gained 300% 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. PHA’s market cap currently stands at over $400 million, securing its position as the 181st largest cryptocurrency by market cap.
PHA is the 20th largest token in the artificial intelligence and big data category by market capitalization. With a circulating supply 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 Network’s 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-focused blockchain platform that combines artificial intelligence (AI) and blockchain to create an execution platform for Web3 AI. In essence, it allows AI to interact with blockchains while making Web3 accessible to a wider audience.
The network’s ‘multi-proof’ system aims to simplify AI execution by giving developers the tools to create secure and incorruptible AI agents. These agents work closely with on-chain 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 DAO governance, and staking to secure the network while earning rewards.
PHA’s 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 to 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
On December 25, the project’s developer announced “a Christmas gift” by shipping Phala 2.0, bringing a major upgrade to its version of decentralized, secure computing by moving from a CPU-based to a GPU network.
🎅Merry Christmas🎄
Our devs just shipped Phala 2.0:https://t.co/TeVXO4zp1i pic.twitter.com/A7UF7LQnLO— Phala Network (@PhalaNetwork) December 25, 2024
The team said that the boost in processing power and efficiency allows for even more demanding AI tasks, while integrated Nvidia Confidential Computing (TDX) keeps sensitive GPU operations secure, even if the host machine is compromised.
“This provides developers with an unparalleled combination of high computational performance and robust security, making Phala the ideal platform for AI and privacy-preserving applications.”
Phala is also launching a Layer 2 rollup on Ethereum in partnership with Succinct Labs and Conduit. “This rollup delivers fast finality, low-cost transactions, and cryptographic security,” the team wrote.
By combining its infrastructure with ZK proofs, Phala aims to streamline Ethereum’s scaling and make it easy to deploy AI-ready, privacy-focused apps through Phala Cloud. The team added:
“Phala 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.”
Ways Phala could be used might be enabling AI to use DeFi platforms — 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 PHA’s 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.
