I woke up to check the numbers, read the papers and get informed, as I always do. To my surprise, I see Hive in the greens and slowly heading to 60 cents.
This is a rather unprecedented pump, especially considering that Bitcoin is currently trading below $30K, according to Coingecko. Of course, there's more to the market than Bitcoin but alas, the natural order is that the top dog takes the whole team with it.
Hive looks like one of the healthiest and most consistent projects you can find in the crypto space these days. This is due to a number of reasons that are perpetuated by the buzzing and ever-growing community.
At the current state of the market, especially with regard to cataclysmic events surrounding Luna and the likes, it is easy to see why there's so much trust in Hive.
Hive is a blockchain-based project but unlike many others that have a high level of risk in their design, Hive has numerous underlying features that are akin to the most secure Web 2 projects you can find today. However, the features are maintained and controlled by the community through stake based votes.
In fact, as far as designs go, there's almost no risk within Hive. The only risk is in the market and unfortunately, that's not a feature that can be controlled or managed by the tech behind the projects
Multiple access
I said on multiple occasions that one of Luna's weak points is that it had, for the most part, a single weak point that could be targeted. Once that point crumbles, it all falls down.
This single weak point was also a feature that we had in Steem and forking away has led to a lot of growth. Since the fork, the hive has virtually doubled the market cap of its previous chain and also eclipsed it in transactions, as well as developments within the network.
As Hive continues to develop, we'll be seeing even more growth in both the market and the community at large. This will, in turn, translate to even more value generated for investors.
At some point, we could actually see Hive completely decouple from Bitcoin. When it starts going its own way, we'll be able to properly understand the way the market perceives Hive as an asset.
Layer 2
I'm really looking forward to the day Hive hits the $1 Billion market cap. Not solely because my bag will be pumped, which is awesome, but I also want to gauge the effect it has on the second layer.
After the mild pump to 56 Cents per Hive, assets like Leo, SPS, Voucher tokens and even Chaos Legion packs experienced mild pumps. Imagine how powerful the pump will be in the bull market.
A $1 Billion market cap for Hive is roughly 5X from where we are today. That kind of move will definitely have an incredible effect on the value of second layer assets on the chain.
If you add a 5X pump of hive to the fact that most of the second layer projects(Splinterlands, Leofinance etc.) are established projects with their own unique communities and value proposals, we could eventually have some other potential billion-dollar projects thriving within Hive in the process.
Looking at Splinterlands right now, we probably have something close to a $1 Billion project already moving with hive. If you collate the total market capitalisation of a variety of Splinterlands affiliated assets, you might find that it could even be higher than the total market cap of Hive.
Of course, the market cap isn't liquidity, but the fact remains that Hive has the tech and community to develop some amazing projects that could dominate the scene in the future. These projects will all thrive with the underlying security that Hive offers and in the process, ensure investors are always protected.
In summary
I've been looking outside Hive this period, trying to scalp up mega profit that will facilitate my future plans but the truth is something my good friend @forexbrokr said in a comment in my post.
Don't get distracted by shiny new pump and dumps.
Stack Hive Power - You don't have enough!
Hive is rife with opportunities that offer consistent dividends and have longevity drilled into their design. No need to look at the grass on the other side, time to water my own.
Posted Using LeoFinance Beta
