Why did XDC Network token rise 25% in the past week?
Take a look at the factors that could have caused the XDC Network token to rise by 25% in the past week. We explore the potential reasons behind the price increase and what this could mean for the future of the XDC Network. Read on to find out more.
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- As of writing, XDC Network’s native token XDC price is the biggest gainer in the past 7 days – having rallied almost 25% in this timeframe.
- Despite the strong rally, XDC price structure on the charts is still in the bearish territory and this 25% rally could soon be overtaken by bearish pressures and possibly lose it all.
- It has been one of the weaker performers in the well known crypto projects and a recovery is strongly needed to revive interest in this particular token.
The XDC Network is a hybrid blockchain of sorts, that functions on a consensus mechanism known as the delegated proof-of-stake (XDPoS). Through this mechanism, the XDC Network works to enable hybrid relay bridges, spontaneous block finality and improve interoperability for blockchain users. Its hybrid nature also results in an architecture that is developer friendly in nature.
Thus, while the token has taken a beating in this crypto bear market – the value proposition for this crypto project remains on the high and thus is a token that investors need to keep an eye out for.
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XDC TECHNICAL OVERVIEW
XDC Network might be weaker in terms of price, but in terms of its underlying development activity – it is scoring a few brownie points. According to data sourced from Santiment – a crypto analytical platform – XDC’s Development Activity is at one of the highest points of the year and if the current trend continues, it could potentially reach a new all-time-high (ATH) before the end of 2022.
This is a very positive signal as it indicates that there is a lot of development happening behind the scenes and new products and services could be on the way for its users and investors. As is with all platforms, an increase and improvement in their product and service portfolio is undoubtedly good for the investors and users because of increasing utility of the project.
Additional Read: Price Predictions
Sporadic Daily Active Addresses
While XDC Network’s development activity is on the rise, another very important metric is hinting at a worrying indication. As you can observe from the chart above – the daily active addresses count for the XDC Network has been sporadic at best, with spikes going up to low double digit figures. This indicates that there is very low active address count and not a lot of people are actively carrying out transactions on the blockchain network. This is a particularly worrying signal and thus investors need to be aware about this before investing in this token.
Thus to conclude, it seems like the XDC Network crypto project is still in its infancy stage, with a lot of development happening behind the scenes but with little to no active addresses on the network. And considering this is a severe bear market scenario – a low daily active addresses count is expected to be on the lower side. And to add to that, a positive technical structure could possibly usher is more activity as and when we see the recovery sustain and continue.
Prices as on 20 December, 2022.
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