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It seems the recently released Weiss cryptocurrency ratings are already making an impact on the markets. With only a handful of currencies receiving decent ratings – some of which still have zero working technology – it is evident this document will influence the markets in one way or another. Steem, the currency of the Steemit platform, is currently surging in value as we speak. With a Steem price of $6.3 at the time of writing, we are not too far off a new Steem price all-time high.
Steem Price is on the Rise
There are many currencies which are still struggling to hold onto their 24-hour gains right now. Most of the top altcoins are still in the red or barely in the green as we speak. Further down the list, we come across the Steem price which noted a 41.6% gain over the past 24 hours. It is worth mentioning there is also a 42.59% gain over Bitcoin, which indicates the altcoin isn’t just piggybacking on the Bitcoin price right now. A very impressive turn of events, although all of this may be temporary.
More specifically, we have seen multiple Steem price increases which are always followed by a steep correction. Whether or not this new price surge is different, remains to be determined. With this sudden price spike coming out of the blue, it is evident there will be plenty of people who take profits and then move on to the next currency. The Steem price hit $5.6 a few days ago and quickly dropped below $4 as a result. Ever since, we have seen this violent and sharp uptrend pushing the price to $6.5.
Even though this current 41.6% gain is pretty significant, the momentum will not necessarily be sustained for much longer whatsoever. After all, the cryptocurrency markets are still in an incredibly volatile position right now, and things will change over time. Right now, however, things can easily turn against the Steem price for all we know. Assuming that happens, a Steem price drop to $5 or lower would not be out of the question either. For now, the Steem price appears to be in a good place, but this is only a momentary snapshot after all.
It does appear the Steem trading volume has picked up slightly. More specifically, we see $412.5m worth of volume over the past 24 hours, which is pretty high. Compared to some of the top altcoins, it is certainly a lot higher than most people expect right now. It is evident there is a genuine demand for this particular currency, even though its use cases are still somewhat limited in nature. Then again, all cryptocurrencies are valued based on hype and speculation, thus there’s no reason to think Steem would be any different.
Interestingly enough, it is the Korean Upbit exchange driving virtually all of the Steem trading volume right now. Almost 87.5% of all Steem trades originate from this company’s KRW and BTC pairs, which is pretty impressive. It also shows the rest of the world is far less interested in this altcoin, with Bittrex generating $33m in volume. How all of this will play out for the future Steem price, remains to be determined, for the time being. There’s a good chance we will see a higher price in the near future, but there’s a very real chance a correction will follow shortly afterward.
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