It was to be expected that the top 10 cryptocurrencies would start to recover after the recent Bitcoin price rally. More specifically, we are now seeing the Dash price approach the US$500 mark. This is a pretty interesting development, to say the very least. Whether or not the Dash price will continue to rise significantly over the next few days remains to be determined.
Dash Price Surge is Significant
Whenever an alternative cryptocurrency goes up in value out of the blue, there are always questions as to whether or not it is legitimate. In the case of the recent Dash price surge, it is evident there is no real reason for it, as the value is slowly approaching the US$500 mark. What’s more, the past few hours have seen marginally inflated trading volume. It is evident this price surge is already attracting a lot of attention.
What is rather interesting is how we are seeing this sudden surge across different privacy-oriented currencies as well. Monero is, alongside Dash, one of the few top 10 cryptocurrencies not having recorded any major losses over the past 24 hours. While Bitcoin is still a major cryptocurrency, it is evident there are some issues associated with this project when it comes to privacy and anonymity. Given increased scrutiny on the part of US government agencies, it is not surprising to see people flocking to Dash and other currencies.
To be sure, there is no major shift taking place either. Most people will continue to buy Bitcoin over other currencies such as Dash for quite some time to come. Moreover, the people who are diversifying their portfolios with various altcoins often only do so for speculative purposes, and in the hopes of accumulating more Bitcoin in the process.
With a 24-hour trading volume of around US$195 million, the demand for Dash has certainly increased out of the blue. Although Bitcoin saw a small dip not too long ago, it doesn’t mean people will suddenly switch over to Dash either. For now, this seems to be a temporary uptrend, but it may not be sustainable in the long run. After all, the Dash price peaked above US$500 a few hours ago and fell back down to US$460 pretty quickly.
As has become the new normal in the world of altcoins, Bithumb is the go-to exchange when it comes to Dash’s trading volume. This Korean exchange represents around 22% of all Dash trades executed in the past 24 hours, although Bittrex and Bitfinex are not too far behind. Most of Dash’s volume comes from fiat currency markets, assuming one includes USDT in that category. Other than that, Bitcoin-denominated trading pairs are certainly contributing their fair share of volume as well.
It will be interesting to see how things play out for the Dash price in the coming hours. Despite being rejected at US$500, the price is still up by 5.52% against USD and 3.65% against BTC since yesterday. With Bitcoin moving up again, this situation could reverse itself pretty quickly, though. There is a lot of good money to be made with altcoins such as Dash, although one shouldn’t hold out for obscene profits either. After all, there is a lot of volatility in the industry right now and any established trend can disappear pretty quickly.