Hive Price vs Steem Price - Does the market know best?

in LeoFinance3 months ago

HIVE v STEEM: Full Data

Here's the full price history for Hive compared to that for Steem over the same period.

I've pulled the data from Binance which explains why the earliest price data for Hive are missing. This includes the drop to 10c Hive and the start of the April pump.

Hive v Steem All 1 Sep.png
All prices from Binance. Coin vs USDT.

What's immediately noticeable is how the market has brought the two prices together. With (essentially) the same level of coin supply this suggests the market has a similar valuation for each of the two projects.

Does the market know best?

Is the similarity between the Hive and Steem prices appropriate?

From a market perspective it probably makes some sense:

  • The two projects are based on the same technology.
  • Hive has a very strong community. Steem has the backing of Justin Sun and potential integration with Tron and other projects.

For traders not directly involved with either blockchain there may not currently be a huge amount separating the two projects.

A success for Hive!

Although most Hive users would assume Hive should have a higher value than Steem, I think it's worth considering what a success this price equality already represents for Hive.

There have been many hard forks of Steem. Hive is the only one to have jumped straight into the mainstream with significant exchange listings and market presence.

Steem has also had four years to promote its brand. Hive has achieved the same level of recognition and valuation in only four months!

Could Hive pull away from here? What could drive the prices apart?

It's always hard to say with crypto!

However my own perspective is that improvements in the technology and development of new dApps and use cases could see Hive push away.

For me the following are examples that all count in Hive's favour:

  • HF24 - not exciting but illustrates development pushing ahead.
  • Wrapped Hive - opportunities for DeFi.
  • NFTShowroom - new use cases bridging across to Hive community skills.
  • Leo and other new communities starting to push on.

Getting to SMTs first would also be useful.

HIVE v STEEM: August Data

And just to finish up, HIVE vs STEEM for August:

Hive v Steem August USDT.png
All prices from Binance. Coin vs USDT.

A nice pump in the middle for Hive before a bit of a rollercoaster ride for the whole market across the second half of August.

And most importantly:

HIVE WINNING!

Disclaimer

Not financial advice. Please do your own research.

Posted Using LeoFinance

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“Steem has the backing of Justin Sun” I don’t know if that’s a good thing. One man doesn’t make a community. Unless he has an army of spam bots.

Posted Using LeoFinance

I'm not a fan either. But he's well known in the crypto world and could bring plenty of financial backing if he really wanted to invest in Steem. From an investor's perspective that could be attractive.