The NEM price leaped to an all-time high on Friday, enabling the cryptocurrency to sneak back into the 10th spot in the market cap rankings.
NEM Price Surges on WeChat Wallet News
Earlier today, NEM announced that it will launch a mobile wallet mini-program for WeChat, China’s most popular messaging app, later this month. According to Inside NEM, an unofficial news source for the project, the NEM micro-app will be the first cryptocurrency wallet developed specifically for WeChat, although CCN.com was unable to independently verify this claim.
The NEM price leaped more than 35 percent in response to the news, extending as high as $0.359 at the peak of the rally. This brought the NEM price roughly one cent above its previous high-water mark, which it set on August 31. At present, the NEM price is trading at $0.332, which translates into a $2.9 billion market cap. Significantly, this movement enabled NEM to creep back into the top 10 on the market cap charts, where it currently holds a minor edge on 11th-ranked Cardano.
NEM is notorious for its thin trading volume relative to its market cap, and that did not change during Friday’s rally. Over the past 24 hours, exchanges have processed just $56 million worth of XEM trades, with most of that volume concentrated in BTC trading pairs.
Proceed With Caution
As exciting as the WeChat announcement is, investors should proceed with caution because it’s possible the bulls are getting ahead of themselves. Multiple posts on social media have characterized the announcement as a partnership between NEM and Chinese tech conglomerate Tencent, the developer of WeChat. This claim is categorically false.
It is unclear to what extent investors are trading on this misinformation, but, given NEM’s low trading volume, it would not be surprising if the cryptocurrency endured a correction once traders realize their error.
Last modified: October 6, 2020 5:19 PM