Steemit (STEEM) news: +20% for crypto
In this article we will learn about The STEEM cryptoa token native to the Steem ecosystem and we will analyze Steemit social platforma fairly popular application within the cryptocurrency landscape.
Steem represents a “social blockchain” that powers multiple platforms where content creators can monetize their activity by receiving STEEM tokens as rewards.
In addition to Steemit social media, Steem’s blockchain actually powers other dApps with real use cases such as eSteem, DTube, Utopian and Steem Monsters.
Yesterday, The STEEM crypto had a significant price increase, but the price has already started to deflate. What has happened?
Does Steemit have anything to do with the pump of the STEEM crypt?
Steemit (STEEM) crypto news: 20% growth in one day
On Thursday 6 April, the cryptocurrency STEEM had a positive price increase 15.26%but if we also consider the peaks, the positive change was more than 60%with volumes in the last 24 hours of $340 million.
This is crazy when we consider that STEEM’s market cap is $95 million.
STEEM’s current price is $0.24 per token, but yesterday it also reached $0.35.
The circulating supply is 431 million tokens, while the total supply is theoretical infinite.
The rise registered yesterday has already partially burned, with the formation of a local top far away from today’s price.
The main markets on which STEEM can be traded are Binance, Bithumb, Bitvavo and Upbit.
Why has this rapid rise and fall in prices occurred?
Is there any Steemit related news that has caused the price of STEEM crypto to increase?
At the moment, there doesn’t seem to be any news correlation that could justify this sudden price movement.
What stands out the most is the terrifying growth in volume.
On Binance for example, on the STEEM-USDT trading pair it is possible to see that on April 6 at 01:00 (CET) average volumes (1 hour time frame) recorded $26,000 in trades while in the next candle ie at 2:00 AM (CET) volumes grew to $9 million.
However, the highest volumes did not occur on Binance, but on Upbit on the STEEM-KRW trading pair, which currently boasts 78% of the total volumes traded in the last 24 hours on all markets.
The reason for the rise of the STEEM crypto does not seem to be related to any news regarding Steemit, but rather appears to be an attempt at market manipulation by the South Korean whales to attract liquidity and unload their tokens at a higher price.
This can be guessed from parabolic increase in volumewhich normally only happens in the presence of strong news, as for example happened a few days ago with Dogecoin, when the logo of the famous dog replaced that of the blue bird on Twitter.
As for STEEM, no relevant news and an insane growth in trading activity.
Watch out because the token has been around for several years and is nowhere near its all-time high, touched in January 2018, during the ICO bubble.
In addition, the fact that the total supply is infinite and the token is generated from day to day creates constant sales pressure which can push the price lower and lower over time.
What is the STEEM crypto and how does Steemit social media work
The Steem project represents a social blockchain solution which acts as a hub for all the decentralized applications built on top of it.
The STEEM crypto is the main token in the ecosystem and is central to how Steemit works
The basic mechanism is quite simple: there are applications that rely on the Steem blockchain where users are rewarded for their participation and content posted in the community.
All actions such as creating posts, comments and reactions are immutably recorded in the distributed database that acts as the backbone of the infrastructure.
To simplify, the more active a user is in the community and produces engagement, the higher his earnings will be.
Income generation of content is through rewards delivered primarily in STEAM crypto, but also from SBD, SF and TRX tokens.
However, all tokens can be exchanged for other cryptocurrencies such as BTC, ETH and LTC.
SF (Steem power) is not actually a real token: rather it represents a measure of the influence a user has on the Steem network.
Steemit social media
The SBD tokenhowever, represents a product similar to a stablecoinbut not backed by fiat money or liquid assets, as is the case with USDT and USDC, for example.
TRX, on the other hand, belongs to the Tron ecosystem, led by the well-known Justin Sun.
In this regard, the project decided in February 2020 to leave the Eos blockchain and migrate to the Tron blockchain.
It seems strange that Steem represents a blockchain in itself, but at the same time is controlled by and under the guidance of Justin Sun Tron network.
This detail is not very reassuring considering that the platform does not have an actual cryptocurrency wallet, but rather a centralized platform where users have credits that they can use (something like what happens in traditional banks).
The most used application in the ecosystem, as well as the one where crypto-STEEM is most present, is Steemit, a social media platform where users can communicate and interact through them in a similar way to traditional social networks such as Facebook.
The difference is that on this platform users are paid for their activities and for contributing to the growth of the community.
However, Steemit is still a long way from achieving the same user base as Facebook.
