Image credit: @majes.tytyty
Perhaps it is too quick to tell, but so far the year 2020 is turning out to be the year of cryptos. The total crypto market cap at the end of December 2019 was an estimated $190b but that figure has spiked to over $300b. That is a staggering $110b growth in less than two months.
During the same period, the market dominance of Bitcoin has shrunk by over 5% in favour of altcoins, for which a cursory look at Steem and SBD are now the subject of this article.
As the reader probably know, Steem and SBD are the naive token of the Steem blockchain, the blockchain powering Steemit - the most widely used decentralized social media in the world.
The general good performance of the altcoin market has not left Steem and SBD out. Precisely, Steem was trading at 12 cents at the close the year 2019. Today, Steem is up over 90% from its lowest point in the last six months. The same story goes for the hitherto struggling SBD, which is now trading around 95 cents, up by over 60% in the last six months.
Yet, Steem does not appear to be slowing down, as the unfolding events of the past few days suggest. First, the daily trade volumes are now hovering above $4m or more, which is a significant leap from the $500k mark we saw for most part of the last few months. And there are lots of development going on the the Steem blockchain (Communities, SMTs, etc), plus Justin Sun, the CEO of TRON, recently admitting in an interview that he has some undisclosed investment in Steem. Really, all these are building hype around Steem, which could be bullish.
On a general note, however, the crumbling Bitcoin dominance is not a coincidence. It clearly shows that the market sentiments are now in favour of altcoins largely because of those (if you like call them Bitcoin whales) who are wisely buying back the already oversold altcoins.
The speculators hope that by buying up some altcoins with their BTC holdings, they could double their profit and then reinvest same in Bitcoin when there is a dip, especially just before or after the halving event. So, the smooth run of altcoins will mostly extend into March and perhaps April before the halving event. If these predictions come true, then Steem should cross the $0.35 mark before any major reversal.
Until I come your way again, I wish you a full Steem ahead.
The views shared in this post are not financial advice and are for informational and entertainment purposes. It is always advised that you do your own research before investing your money in cryptocurrencies which have become known as very "risky" and "volatile".
Posted via Steemleo