NEM Price Slump Doesn’t Mean You Should Give Up Hope
The NEM price chart for 2018 doesn’t make for pleasant reading for those that invested at the start of the year. With commentators still riding high from 2017’s crypto boom, the price of NEM topped $1.83 in January. However, as the bearish trend took hold and everything around it started to fall, the price of NEM in dollars took a dive. Looking at the NEM price live on August 29, a single coin was worth $0.11.
For many, coins at the lower end of the spectrum are the most likely to fall off given the current wave of antipathy flowing through the market. However, the opposing view would be that smaller coins have a greater chance of showing a profit in the short-term at least. Looking at the crypto price charts and recent innovations, NEM could be one of these coins. Described as a third generation blockchain, NEM actually has many of the credentials to replace Ethereum as the world’s second largest crypto.
NEM Built on a Solid Base
Since its inception, Ethereum has been criticized for its lack of scalability. Although it’s still up for debate, NEM solves this problem by offering a smart contracts platform that’s capable of hosting decentralized apps (dAPPS), ICOs and more. However, one of the major problems with this line of thinking when it comes to investments is that price charts are often slow on the uptake. Even though Ethereum was seen as the replacement for Bitcoin, it still hasn’t usurped Satoshi Nakamoto’s creation as the most valuable crypto.
To put it another way, the price of NEM isn’t really predicated on its underlying technology. Therefore, even if the experts see it as the next frontier for blockchains, investors aren’t paying that much attention to this. What they are interested in, however, is the manifestation of this technology. In other words, the innovations and business partnerships that have been formed off the back of NEM’s system. For example, Unibright announced in August that it had entered into a strategic partnership with NEM. The unified framework for a blockchain-based business platform now uses NEM oriented code to facilitate transactions.
A Glimmer of Light as NEM Shows Its Utility
Through this partnership, NEM is essentially positioning itself as a useful product for businesses. As researchers have noted, cryptos need to show their utility if they want to find a place in society. Although this deal doesn’t cement NEM’s position as a mainstream business aid, it’s a step in the right direction. In addition to utility, the price of NEM also rises and falls in line with its availability. Like any asset, the easier it is to invest, the more likely people are to invest. Based on this, the recent news that BitPanda has listed NEM’s coin (XEM) can only be a good thing.
The price of NEM isn’t in a good spot; that’s obvious. However, we know the markets often react to good news and this project has made some positive announcements in recent weeks. Although that doesn’t mean it’s going to have a huge comeback as we’ve previously predicted, it is affordable and, more importantly, it does have potential.
*Information in this article should not be taken as investment advice.