Since the end of November, the Waves coin (WAVES) has bucked a market trend and risen in price by over 150%. The cryptocurrency has not only risen to a price, at the time of writing, of $2.48 per coin but as bitcoin price falls, WAVES value against bitcoin (BTC) is also growing.
The Waves cryptocurrency today, for a short time, entered the top 20 coins by market capitalization but has since fallen back to 22nd place as other coins show green. The coin’s market cap is now nearly $245 million, its highest since July 2018.
The bigger picture
In a quick nutshell, Waves is a platform where organizations and developers can create their own custom tokens. It has its own exchange where these tokens can be traded alongside some of the most popular cryptocurrencies like bitcoin, Litecoin, and Monero. There are 69 tradeable coins on the Waves DEX with Waves reporting over 20,000 custom tokens in use.
You can think of Waves as a marketplace for “3rd party” token economy.
From past experience, we know that good news, updates, and market trends contribute to a token’s overall price growth.
At CryptoMeNow, our goal is to avoid as much technical analysis as possible and focus on the bigger fundamental picture.
With that said, Waves is not just a one-hit wonder spike, let’s look at the few reasons that led to this spike:
- Waves released an updated to their Waves mobile wallet that enabled credit card purchases of Waves which could then be traded into Bitcoin, or for other coins on its own DEX, could be fuelling interest in the coin.
- Introducing smart contract functionality to the platform in September 2018, it’s now adding smart assets and smart account trading.
- Firefox’s wallet add on wallet extension release
- Launching a European securities token trading platform in 2019
- Upcoming crypto payment gateway integrations
That’s not all.
The Waves blockchain, according to Waves, is fast, supporting 6,000 transactions per minute which equates to 100 per second. Ethereum is capable of around 10-15 transactions per second currently.
There may well be some growing confidence in the Waves blockchain. Waves announced it had processed more transactions in one day than any other on October 21, 2018, reaching 6.1 million and surpassing Ethereum at 1.3 million and EOS at 5.4 million.
Lastly, Waves’ trading volume has gone up meaning that more active traders are actively trading Waves.