The cryptocurrency Dash has seen a significant price spike over the past couple of weeks. Dash even acquired the cryptocurrency market capitalization top three position, and is priced over US$46 at the time of writing. Some cryptocurrency enthusiasts have applauded the significant rise for various reasons, while others believe the pump just doesn’t add up.
Dash Sees Significant Price Rise and Infrastructure Support
The cryptocurrency Dash (formally known as Darkcoin) has increased in value exponentially. Dash community members attribute the increase to the currency’s features such as quick confirmation times, low fees, a built in tumbler, and a governance system that uses masternodes. Since the upgrade, Dash has experienced a price increase of 295 percent, peaking at $60 USD per coin on March 2.
Many cryptocurrency infrastructure providers have been adding Dash to their repertoire. Hardware wallet manufacturers Trezor and Keepkey have added Dash support to their devices while exchanges like Wall of Coins, and Bitfinex have integrated the altcoin. Bitfinex Chief Strategy Officer Phil Potter details, “Dash is currently experiencing its breakout moment right now, and we want to be able to provide our growing customer base with seamless access to one of the rising stars in our space.”
The cryptocurrency Dash has seen its share of ups and downs over the years, receiving its first significant rise during the inception of the masternodes. The price per Dash rose to a high of $15, but subsequently dropped to a low of $5. Dash has also had to dodge rumors of an initial insta-mine and masternode centralization while appreciating over the course of 2016 and into 2017.
Criticism From Ark Invest Analyst Chris Burniske
Meanwhile, the latest Dash price spike has received criticism, as well. Two weeks ago Ark Invest senior analyst Chris Burniske did some research on Dash and states, “some things still aren’t adding up.” The pumping price has caused Burniske to remain skeptical of the Dash rise as he reviews the currency’s average transaction value, daily transactions, and masternodes.
“For one, the average transaction value is extremely high,” explains Burniske. “For example, data from 2/21/2017 implies average txn value > $4K, which is 4X bitcoin. I would have to imagine this is largely masternodes / miners moving around their Dash? Such a hypothesis would jibe with the fact that the number of transactions per day using Dash has gone nowhere since launch. It’s stuck between 1500-2500.
Similarly, the number of Dash transacted/day has also gone nowhere. Again, a flat pattern from launch implies to me this equals masternode/miner activity. The only thing for Dash that has gone up is the trading volume, which jibes with a pumping price. But that only works for so long…
When Burniske publicly stated his opinion, Dash supporters disagreed with his analysis. So far Dash has continued to hold its high price point and its leading market capitalization of $329 million just below Ethereum. Others have also speculated some of the Dash price increase is also due to the current Bitcoin network congestion, as Dash may give people the opportunity to transact faster and with lower fees.
What do you think about the Dash price spike? Let us know in the comments below.
Images courtesy of Shutterstock, Chris Burniske Twitter, and Dash.org.