The overall bearish trend is having a toll on almost all cryptos. Steem and Steem Dollars aren't spared either. At its current price of $1.65 Steem turns out to be the most lucrative option to park your funds. The following analysis proves why that’s so.
Steem Grossly Undervalued
Prudence tells us that the value of a technology mainly depends on how widespread, cost-effective and efficient it is in the real world. Steem blockchain beats all the rest by a wide margin if one looks at the quantum of its daily transaction activity, it’s capacity, and compare it with the market cap relative to the other blockchans.
During the preceding two years Steem and Steem-based platforms have grown by leaps and bounds. That's clearly evident by the magnitude of daily transactions executed on Steem blockchain. The following charts show the daily blockchain transactions of top 4 blockchains, on December 23rd 2017 and on June 14th 2018 respectively:
December 23, 2017
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June 14, 2018
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Steem is 1,923 & 213 times more valuable than BTC & ETH respectively
Using the following parameters Steem comes out as the number one blockchain that’s 1,923 times and 213 times more valuable than Bitcoin and Ethereum respectively:
Average Daily Activity: While Ethereum and Bitcoin transactions are on decline, Steem averaged over 1.5 million daily transactions, almost thrice that of Ethereum and almost 8 times that of Bitcoin
Activity Valuation Index (AVI): AVI is the ratio of blockchain’s average daily activity to its market cap standardized to Bitcoin’s AVI as 1. For example a blockchain with same number of Tx as Bitcoin but only half its market cap will have an AVI of 2, which in terms of its intrinsic value should be twice as valuable as Bitcoin. The current AVI of Steem is 1,781, making Steem 1,781 times more valuable than Bitcoin and 197 times more valuable than Ethereum.
Steem has no match in scalability
Capacity Utilization Index(CUI): On scalability there’s no match to Steem. While Steem used up only 0.11% of its full capacity, both Ethereum and Bitcoin networks used up 100% of their capacities and were choked with over 11,000 and 18,000 unconfirmed transactions respectively on June 14, 2018 (See the figures above).
Steem Growth
When a technology's growth curve hasn't yet reached a plateau it's decline in near future is inconceivable. Let's look at the rate at which new Steemit accounts are created since it's launch in 2016 to this date.
New Accounts Monthly Growth: 2016
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New Accounts Monthly Growth: 2017
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New Steemit Accounts Creation Jumps to 171% in 2018
While the new Steemit accounts created daily averaged in hundreds in 2016, it escalated to an average of 1,107 new accounts created daily in 2017. As of June 14, 2018, the average rate at which new accounts were created daily during May-June averaged 1,895, a 171% jump from 2017.
The #Graphene Family Impact
Another major factor that cannot be ignored is that #bitshares, another blockchain from the same blockchain family #graphene, is close second in number of daily transactions, AVI and CUI indices.
Conclusion
In view of the above analysis of Steem's performance indices and it's growth curve, if there's one crypto that's most undervalued and poised for the best ROI, it's Steem.
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