About a year ago hive was trading around $0.20. Today the price of the Today is around $0.90, what changed? Not much really if we are being frank. Yes, there are an influx of new users during the last quarter of 2021 and maybe a shift in the sentiment of speculators, mainly the Korean investors, from steem to hive. This is my very simplistic explanation of the price change in the last year (I could be wrong and I am open to learning more about the dynamics of the market).
Based on my assessment, on-chain (blogging) activities have not necessarily impacted price action. This is why i am not particularly thrilled by sudden price actions (either upward or downward) because it has nothing or little to do with what we do on the chain. After the splinterland boom, we have seen a reduction in the number of new entrants and even a downturn in social/blogging activities. So yes, we are not doing well in this area and that is a source of concern for many esp when we consider that crypto winter is right about the corner and that would drastically change things.
Although the social aside of the blockchain isn’t generating a lot in terms of financial value, it is a core part of the blockchain and the reason we still have a strong community which every longstanding member of the hive community will agree is the backbone of the chain. When the chips down speculators and investors' inputs are minimal.
I can’t begin to count the number of whales we have given the middle finger to in the past. Hive is a product of one of such many battles and we survived. I want to attribute this to the strong social bond we've created over the years, that makes hive more than just a project but a true community (despite our differences).
“Hive may never become a high market cap coin because of its social media component.”
It takes going out into cyberspace to understand the sentiment of the market/people towards cryptocurrencies a technology/concept which is still very much in its infancy although it has been in existent for over a decade now. What drives this space still is profit and not innovation which is crucial for its growth. It is going to take a couple more market circles before we get to that point. There is still a lot of dumb money out there in the crypto space and it needs to be redirected to the right places.
So yes, very few people care about what we are building here on hive. Maybe that is due to poor marketing, I cannot say for sure. In my opinion, hive is one of the best (if not the best) blockchains in terms of utility and development, and we have a functioning social ecosystem to back it up. However, we are unable to gain the traction we need, but when we do hit the mark, the impact would certainly be astronomically and would payoff for the years of drought, grinding and possibly justify the reward pool and its use.
Hive may never become a high market cap coin because of its social media component, however, it is going to play a huge part when we do. Now we see the blockchain expanding and moving in different directions. We have recorded some success with splinterland and Leofinace, and it is my belief that other projects will follow suit.
I am writing this post in response to some of the thoughts and conversations i have had over the week about the relevance of the blogsphere on hive. I do agree it is not bringing enough value (money)--it is doing quite the positive. However, I still believe there is a need for decentralized social media platforms. I will be talking about this more this week. Cheers!
