Among all trading marketplaces, the crypto market is the most volatile. This is due to a variety of factors, including the unusually high volume in this industry and a lack of control. People are still suspicious of this market's status as the strongest in the world, which will undoubtedly increase its volatility.
The crypto market has been on the decline for the last two years, indicating a downward trend. We saw a price of BTC at $14K a few months ago, but a decent recovery is the result of an active market in which investors are looking to buy their favourite coins. When the market was around $14K, the price of #HIVE reached $0.24, which was an extremely low price.
Because of the startling price, this coin must not fall as much as other altcoins. One of the reasons is because this is a powerful staking coin, with approximately 25-30% of coins staked by hive users. This is a plus for this coin because it has an ecosystem and the platform has locked the percentage of the coin for around three months for the users.
Now the question is, even if HIVE is a powerful coin and a significant amount is staked, why does the price follow the price of Bitcoin? This is something to consider that I share based on my expertise, and people may disagree with the arguments I make. One of the reasons I know this is because this coin is pumping and dumping.
Every month, we see a price pump and dump, which draws traders and whales who profit from the price fluctuation. Whales and other investors buy the coin at a low price and then sell their whole holdings during the pump. Whales are interested in the #hive and are always looking for an opportunity to pump and dump.
Other than stakers, HIVE investors constantly find a price to enter the market. Sometimes they dump #hive, causing others to panic and sell their coins in order to buy #hive. One of the reasons I understand is because of this. Another factor is a lack of volume. There are very few occasions when I witness HIVE volume exceeding 2M.
The average volume of #hive is approximately 500,000 USDT, which is extremely low. This suggests that fewer individuals are drawn to this currency. When the volume exceeds 2 million, the market's price rises dramatically. One of the reasons for the poor HIVE price rise is a lack of volume.
Another reason I understand is that just a small percentage of the world's population is aware of the HIVE ecosystem. As I mentioned in earlier postings, there is absolutely no advertising for #HIVE. I can't seem to find any videos about the HIVE ecosystem on #youtube, #Google, or any other social media platform.
One of the reasons people are unaware of the ecosystem is due to improper advertising. If half of the Facebook users join this ecosystem, the price of HIVE will undoubtedly rise above $5 in a relatively short period of time. This is the shortcoming of #hive users in terms of advertising this platform.
Other factors contribute to the fact that the hive price is not becoming steady. However, I am confident that the projects that support the #hive coin are more stronger and will have a bright future. The growth of the ecosystem is positive, but not as rapid as it should be. But don't worry; slow and steady always wins the race.
This is an attempt on my side to inform you about the price of #HIVE and the factors that are preventing the price from stabilising. I hope this post is educational and that you find it interesting. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
TWITTER TELEGRAM HIVE WHATSAPP DISCORD
IMAGES AND GIF TAKEN FROM CANVA, GOOGLE AND EDITED IN CANVA
REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.
