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.
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.
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.
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: July 5, 2014 14:10 UTC