Low-Volume Lisk (LSK) Spikes 40% for No Apparent Reason

Cryptocurrency Lisk (LSK) spiked on Saturday, extending a period of extremely volatile moves for the low-volume altcoin. Although there was no apparent catalyst for the rally, recruitment of the Lisk blockchain for a new GPS application may have contributed to the sudden surge.

A more logical explanation would be a coordinated pump on YoBit, which accounts for nearly half of LSK trade volumes.

LSK Price Update

The Lisk price surged 40.1% on Saturday to $1.63, according to CoinMarketCap. The move came less than three days after LSK plunged by an almost equal amount. The cryptocurrency has been extremely volatile over the past seven days, as evidenced by the following chart:

Lisk price goes boom-and-bust. | Source: CoinMarketCap.

Despite the gain, Lisk is trading at a fraction of its 52-week peak and is down a staggering 96% from its all-time high. It has a lifetime return on investment of -20%.

At current values, Lisk has a total market capitalization of $194.3 million, placing it in 38th spot among active blockchain projects.

Lisk outperformed the market not only in dollar terms, but against bitcoin as well. The LSK/BTC exchange rate jumped 36.3% to 0.00015677. Interestingly, nearly half of the coin’s daily trade volumes come from YoBit, where LSK/BTC trades were said to be worth nearly $1.9 million on Saturday. 

Read why LSK/BTC was ripe for bottom picking in July. 

Lisk was easily the top-performing cryptocurrency on Saturday. No other altcoin in the top-50 reported double-digit percentage gains.

Overhyped Market?

Lisk’s boom-and-bust price movement is clearly a function of low-volume trading. Earlier this year, Poloniex announced that it will end support for LSK and a batch of other cryptocurrencies in the United States due to low trading volume.

Beyond the obvious, Lisk is also considered to be one of the most overhyped projects in the cryptocurrency market. As Hacked reported back in January, venture capitalist William Mougayar considers Lisk “over-marketed” based on “community-driven activity,” Other projects in this camp include EOS, IOTA, Tron, bitcoin cash and Neo.

Thomas Schouten, Lisk’s head of marketing, conceded that the project may be overhyped, at least to a certain extent.

Lisk has a large Twitter following at over 182,000. Its Telegram community consists of roughly 4,800 members at last check.

Lisk is considered one of the more lucrative proof-of-stake cryptocurrencies based on passive rewards. The passive income one can earn from holding it is compounded by more than three years of blockchain stability, something that many other projects lack.

Read: 6 High Yield Proof-of-Stake (PoS) Altcoins for Easy Passive Crypto Income

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Chart via CoinMarketCap.

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi