Market Analysis
3 reasons why Constellation (DAG) price outperformed most altcoins this week
The issues voiced in regards to the consensus mechanisms of Bitcoin ((*3*)BTC) and Ethereum (ETH) have performed a component within the sideways price motion each property have seen over the previous two months, opening the door for different competing tasks to realize consideration.
One venture that managed to beat the sideways motion out there and rally to a brand new report excessive on July 10 is Constellation (DAG), a protocol that makes use of a directed acyclic graph structure to attain a consensus that’s theoretically able to infinite scaling.
Knowledge from Cointelegraph Markets Professional and TradingView exhibits that the price of DAG rallied 353% from a low of $0.037 on June 22 to a brand new report excessive at $0.17 on July 10.
DAG/USDT 4-hour chart. Supply: TradingView
Three reasons for the sturdy exhibiting from DAG embrace the discharge of a functioning decentralized change, an increasing checklist of worldwide companions who make the most of the Constellation community to handle knowledge and the community’s means to supply low-cost, extremely scalable transactions.
DeFi launch brings yield to stakers
The not too long ago launched Lattice Trade (LTX) is an automatic market maker-based decentralized change (DEX) that makes use of Constellation’s Hypergraph community to supply a “near-zero fee and horizontally scalable decentralized network.”
#YieldFarming is the proper methodology for the neighborhood to interact immediately with @LatticeExchange, permitting customers to make the most of $LTX whereas being rewarded.
Learn extra about liquidity offering and staking in our newest weblog publish https://t.co/usZLdkbNMS#DEX #DeFi #LatticeExchange
— Lattice Trade (@LatticeExchange) April 16, 2021
Within the path few months, the venture has added yield farming for LTX token through liquidity provision on Uniswap or staking the token immediately on the Lattice Trade for a calculated APY of 155%.
DAG holders also can take part within the community by staking tokens on a state channel to assist improve the community’s transaction per second (TPS) functionality, or through the use of DAG tokens to run a node on Constellation’s Hypergraph Protocol to be able to validate knowledge and transactions and obtain rewards paid in DAG.
Partnerships spotlight Constellation’s real-world software
Constellation’s rising checklist of ecosystem companions is one other signal of the venture’s sturdy fundamentals.
Constellation ecosystem companions. Supply: Constellation Community
Notable enterprise partnerships embrace Amazon Net Companies and the United States Airforce and the venture has additionally established sector-related partnerships with Chainlink (LINK) and KuCoin change.
The introduced partnership with Liechtenstein Cryptoassets Trade (LCX) was additionally a big growth for the Constellation ecosystem because the change agreed to assist the itemizing of DAG together with future tokens created utilizing the Constellation Community’s L_0 Token Normal.
Quicker transactions, decrease prices
Just lately, Bitcoin and Ethereum have fallen underneath elevated scrutiny for his or her environmental prices and excessive transaction charges. This led traders and builders to shift their consideration to tasks like Solana and layer-2 options which provide sooner transaction speeds.
Just some months in the past, merchants and blockchain tasks had been crippled by excessive gasoline charges on the Ethereum community, and this signifies that any venture that provides safe, low charge transactions with a aggressive TPS has the chance to thrive.
The brand new ‘Stargazer’ pockets interfaces with Lattice and it helps zero-fee person-to-person transactions on the community.
DeFi platform comparability. Supply: Twitter
Because the cryptocurrency neighborhood prepares for the upcoming London onerous fork on Ethereum, the destiny of competing layer-one and layer-two options stays up within the air as customers wait to see if the improve results in a big discount in charges. If the state of affairs doesn’t noticeably enhance, strengthening fundamentals and the opportunity of filling a rising demand area of interest may bode properly for DAG price sooner or later.
The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you need to conduct your personal analysis when making a call.
