Steem Price Down 19% Over Week as Hardfork 20 on the Horizon
Steem – one of three internal currencies on the Steemit social media platform – has had a fairly miserable week and has ended up with 19% losses from this time seven days ago.
During that time STEEM coins dipped from a value of $1.63 to $1.31 – the price at the time of writing.
Over the course of the last 24 hours Steem has fallen by close to 5%, and it now seems likely that Steem’s 36th place ranking on Coinmarketcap is under threat from today’s strongest performer in the top-100 – Basic Attention Token (BAT).
July actually began well well for Steem, as the coin spiked in value to the tune of 61% over the course of three days between June 29th and July 1st. Yet the early July high of $1.86 is nothing compared to the April high of $4.62 – during which time the daily volumes reached $150 million. That’s significantly higher than today’s volume of $1.5 million – a mere 1% of that recorded during the April peak.
The price during January’s peak was $8.01, which leaves Steem in the uncomfortable position of being 83% in the red over the last seven months.
At the start of the month the Steemit team released details on the upcoming ‘Hardfork 20’. The post detailed the team’s intention to overhaul some of Steemit systems with the update in a bid to:
“…create a system that 1) more efficiently allocates blockchain resources; 2) more accurately measures the true cost of running the blockchain; and 3) enables Steem developers to create more predictable user experiences.”
The resources in question are those which are awarded to users for their participation on the platform. Steemit is a social media site which runs on a blockchain, and instead of likes and upvotes, posts are rewarded with cryptocurrency.
There are currently three internal currencies on Steemit – STEEM, Steem Dollars (SBD) and Steem Power. Both STEEM and SBD can be traded in and out of the platform, while Steem Power represents ‘locked in’ funds, which measure network influence. Steem Power can only be withdrawn incrementally over a period of three months.
The STEEM coin’s poor performance in recent times has a ripple effect which extends further than the trading floor. Since the Steemit platform operates on the blockchain, the platform expands or contracts in value along with its primary currency – STEEM.
This means that a user could earn $50 for a post on Monday, and by the time the pay-out is made a week later, the value of STEEM has dropped and now the post is worth less. If we take the previous week’s numbers for example, then we see that a $50 post would now be worth only $40. Ultimately the platform rises or falls with the cryptocurrency… but that works both ways. If enough people can get on board with the idea of blockchain-based social media then the STEEM currency would benefit from the increased use.