Chart Of The Day: Unusual Steem Trade Activity

Summary

  • I have seen unusually high volume in Steem trading.
  • It is a fresh record.
  • Unfortunately this was accompanied by a further fall in prices.

The Unusual Steem Trade Activity

Refreshing some data I found an interesting market movement. The volume of traded Steem coins was unusually high on September 30, 2019. Some more than 16 million USA dollars, by data of Coinmarketcap. See the chart.

The last day, with a bigger volume than this, was on March 10, 2019, with some more than 20 million USD. But the “all-time high” is much much more. That was the 25 of January 2018, with 318,344,000 USD. In the “big hype”. Seemingly, it could be also an error. Because the volume only seldom reached 100 million before and after this. But the days before and after that, the turnover also reached 200 million.)

Traces of whales

By the way, the 25 of January 2018, Steem price was 6.51 USD, near the all-time highs close to $8. That is 48 times higher than today. (The minimum volume was only $578 on May 2016, some weeks after Steem was launched. But that is more a historical curiosity than a useful data.)

Is that big volume, good news or bad news? It was accompanied by falling prices, to the 0.125851 USD daily minimum and 0.131108 USD closing. So, I think it is bad news. The volume can surge if a big player is moving big capital. But also if many small investors are moving, acting in crowds.

The fresh record

I see no big hype nor big fears among small Steemians. I must suppose the high volume is due sellings of whales or Steemit Inc. All the capitalization of Steem is by 46.9 million USD today. So the ratio of the daily turnover to the capitalization was 35.3 percent. That is a new all-time high, a record.

That other day mentioned, with a turnover of 318 million USD in January 2018, was meaning only 19.7 percent of the capitalization. (Capitalization means the total value of all the tokens issued /or, put in circulation, in some cases/.)

My opinion

What about the price? Will it run out to fall to zero? Surely not, but already by these actual prices, obviously the existence of all the Steem-World is in danger. (Witnesses, programmers won’t be able to pay the bills.) Prices often tell us something, and I don’t think the price tells “HF21 was a big success”.

It reminds me more rather of the big fall of EOS in June. After the disappointing announcement of Voice. I suppose HF23 or whatever should come and make Steem more attractive for any investors. For small and big ones. But this is already my private opinion. “Comment is free, facts are sacred.” (Editor C.P. Scott, Guardian, 1921.)

Disclaimer

This website and the information contained herein is not intended to be investment advice or credit analysis. I’m not a financial advisor and I have no business relationship with any investment or finance-related company. The posted material on this blog is my personal opinion or quoted from other sources but never advice or an offer to buy or sell any product. Make your proper research, or consult your advisors before making any investment or financial or legal decisions. 

(Picture: Own work.)

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