Over the past week, many altcoins have experienced significant price increases. What is striking about this trend is that it has not only affected altcoins with small market caps (whose prices are easy to manipulate) but has stretched to altcoin heavyweights such as Dogecoin and now Nxt, who have previously encountered prolonged price declines. CCN analyzes the Nxt price increase within the context of its recent downtrend.
Nxt Price Rises 14% in 24 Hours
The Nxt price rose 14% in 24 hours from September 4-5. On September 4, the Nxt price was 5,980 satoshis. For most of the day, the Nxt price remained fairly steady. However, at 10 p.m. EST the Nxt price began climbing, reaching a high of ~7,000 satoshis at 9 p.m. the next day. Since then, the Nxt price has fluctuated between 6,745 and 7,000 satoshis. At the time this article was written, the Nxt price rested at 6,848 satoshis, which is located near the middle of that range.
Is this the End of a Prolonged Nxt Price Decline?
Nxt has endured a several-month price decline following a price bubble in early June. As the chart below demonstrates, Nxt experienced a massive price and market cap increase from April through the early part of June. In late April, Nxt’s market cap was as low as $20 million, with a coin price of ~4,500 satoshis. Beginning May 9, the Nxt price exploded, reaching a price and market cap of 13,808 satoshis and ~$90 million, respectively. At one point, Nxt held the third-highest market cap and was set to challenge Litecoin for second place (it now places fifth, behind both Ripple and BitSharesX).
Nxt was unable to sustain such a high market cap, however, because the Nxt price fell 69.5% between June 6 and June 9. The Nxt price experienced a brief recovery but has steadily declined for the past three months.
For the past two weeks, the Nxt market cap has remained relatively stable (even including today’s price increase), which could signal that the Nxt price has finally found a mean. Compare the 180-day Nxt price and market cap chart from CoinMarketCap with this price bubble chart from Hofstra University’s Department of Global Studies.
Nxt Investment Advice
Nearly every cryptocurrency has experienced a price bubble comparable to the chart above–even Bitcoin. With smaller altcoins, price bubbles are often the product of artificially constructed price manipulation, known as a “pump and dump.” With more prominent altcoins such as Nxt, however, bubbles are more closely-related to media attention and investor hype.
Specifically, the Nxt price relates to how the public perceives Nxt’s Bitcoin 2.0 features, compared to how they view the present state of other 2.0-related cryptocurrencies, which include Counterparty, BitShares, Ethereum, Ripple, and Stellar. Many of these platforms seek to accomplish similar goals, and it is not currently clear which one(s) will emerge as the front-runner(s). With so many altcoins vying for a market share that overlaps in several places, one will often rise at the expense of another.
Consequently, investors should be cautious not to place all their eggs in one basket, or perhaps more accurately, all their coins in one blockchain.