Steem (STEEM) Correction Is Underway As Expected
Altcoins have experienced sudden growth over the past few weeks with the blockchain-based social media Steem (STEEM) also getting in on the action.
Months after it was launched, Steem (STEEM) had the attributes of a niche coin, as it is mostly used on a single social media site. Over the past one week though, STEEM has attained new all-time highs and has become another speculative digital asset.
Steem (STEEM) price action slipped down a little from its previous high above $8. Subsequently, a curious case is happening to the Steem Dollars (SBD). The cryptocurrency which was designed to be tied to the US dollar by algorithm-based interventions has surged towards the $10 mark.
Both STEEM and SBD are important to the operation of Steemit social media platform. Users can earn Steem by posting, with the choice to either exchange it for Steem Dollars and move to fiat, or buy STEEM shares, which cannot be reverted to Steem.
At the moment, the price of Steem Dollars has surged above the intended price to the USD, creating confusion amongst users as well as investors.
At a certain point, the price of Steem dollars reached an all-time high of $12 while STEEM continued to decline, with a recent low of $0.80 recorded before it began its recovery.
The recent surge in Steem price will likely result in buying demand on Bittrex and Poloniex, a move that will test the community’s ability and willingness to hold the coins or make a long-term investment. Some experts believe that the recent price surge wouldn’t last long, and will most likely affect buyers who enter the market at this time.
Other analysts though are of the view that the $10 mark is possible in the short term, while Steem coin would continue to be an asset to store some funds for this year. It is clear that STEEM is nowhere near a true recovery against Bitcoin, and will like plunge again if Bitcoin price moves up this week.
STEEM is heavily reliant on trading on Bittrex and Poloniex, with its current price rally most likely to end soon.
Some experts have started comparing STEEM to social media giant Facebook. Even though its tokens aren’t shares, they are tools within the social media world that can be used. It is expected that the Steemit project would worth more once it gains more popularity.
At the moment, STEEM price remains volatile, reaching at $7.44 for a moment after plunging 5%.