Darkcoin Price Falls to 30 Day Low; Peercoin Briefly Rises to #4

Journalist:
Josiah Wilmoth @Y3llowb1ackbird
July 5, 2014

The Darkcoin price exploded during May, rising more than 2000% in less than a month. Since its rise, Darkcoin has consistently remained among the altcoin heavyweights, despite a price decline. However, the Darkcoin price downtrend is becoming a concern for investors, as Darkcoin’s market cap has fallen below that of another coin that until recently had been slumping, Peercoin. As the Darkcoin price has decreased, the Peercoin price has risen, causing Peercoin to briefly pass Darkcoin for fourth in total market cap.

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Darkcoin Price Falls to 30 Day Low

Darkcoin’s price explosion in May was directly tied to evidence that Darkcoin developers were beginning to deliver on their promise to create DarkSend, a feature that would allow Darkcoin holders to send and receive completely anonymous payments.

Unfortunately for Darkcoin investors, the DarkSend roll-out has been somewhat bumpy. The hard fork that enabled masternode payments contained bugs that temporarily created repeated forks of the Darkcoin network. The Darkcoin developers quickly fixed this problem, but a subsequent update brought a few hiccups to the network as well.

While these problems do not have any long-term impact on Darkcoin, they may be causing investors to be a bit more cautious about Darkcoin’s immediate future. Since the rebound following the masternode hard fork issues, the Darkcoin price has declined steadily from $14.29 on June to $7.57 on July 3 (source: CoinMarketCap), which placed Darkcoin’s market cap below Peercoin for the first time in recent memory. Since then, the Darkcoin price has bumped back up to $7.77, moving Darkcoin back into fourth place.

The Darkcoin price has declined steadily over the past 30 days.

Peercoin Price Rallies; Market Cap moves to #4

While the Darkcoin price can’t seem to get out of its slump, it appears that the Peercoin price is finally emerging from a slump of its own. After reaching a mean price of around $1.70 for most of June (with pumps to as high as $1.98), the Peercoin price had fallen to as low as $1.35 over the past week. Since reaching that low on June 30, the Peercoin price trended upwards, reaching  $1.61 at on July 3rd. Coupled with Darkcoin’s price decline, Peercoin’s upward trend moved it past Darkcoin in terms of total market cap, placing it fourth overall. For a short while, Peercoin’s market cap now trailed only Bitcoin, Litecoin, and NXT.

July 3, via CoinMarketCap

On July 4, the Peercoin price dropped 6.25% to $1.50, moving it back into 5th place in total market cap. Nevertheless, the Peercoin price still seems to be trending upward, even if the movement is slight. This minor Peercoin price rally comes on the heels of the announcement of a crowdsourced Peercoin marketing campaign, which the community hopes will spread awareness about the coin that is one of Bitcoin’s oldest cousins.

Darkcoin and Peercoin Metric Analysis

The consistent fall of the Darkcoin price should trouble investors who bought in at prices close to double its present value. However, DarkSend development continues to move forward, and Darkcoin boasts strength in several key areas, including developer involvement and market liquidity. CoinGecko, a cryptocurrency market analysis site that measures a number of factors to determine the strength of a coin, still ranks Darkcoin’s metric score fourth, behind only Bitcoin, Dogecoin, and Litecoin. Peercoin, in contrast, sits in eleventh place due to its low liquidity levels (relative to the other major coins). Darkcoin investors should hesitate to prematurely sell their holdings.

Disclaimer: The author does not currently have any Darkcoin or Peercoin investments. As always, make sure you only invest in coins you believe in and do not invest more than you are willing to lose. Featured image by Shutterstock.

Last modified (UTC): July 5, 2014 14:10

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.