It seems the recently released Weiss cryptocurrency ratings are poised to have an impact on the markets. With only a handful of currencies receiving decent ratings – some of which still have zero working technology – it is evident this document will influence the markets in one way or another. Steem, the currency of the Steemit platform, is currently surging in value as we speak. With a Steem price of US$6.30 at the time of writing, it is not too far off from setting a new all-time high.
Steem Price is on the Rise
There are many currencies which are still struggling to hold onto their 24-hour gains right now. Most of the top altcoins are still in the red or barely in the green as we speak. Further down the list, we come across the Steem price which noted a 41.6% gain over the past 24 hours. It is worth mentioning that it also posted a 42.59% gain over Bitcoin, which indicates the altcoin isn’t just piggybacking on the Bitcoin price right now. It’s a very impressive turn of events, although all of this may be temporary.
Indeed, we have seen multiple Steem price increases which were followed by steep corrections. Whether or not this latest surge is different remains to be determined. With this sudden price spike coming out of the blue, it is evident there will be plenty of people who take profits and then move on to the next currency. The Steem price hit US$5.60 a few days ago and quickly dropped below US$4 as a result. Since that time, we have seen a violent and sharp uptrend push the price to US$6.50.
Even though this 41.6% 24-hour gain is pretty significant, the momentum will not necessarily be sustained for much longer. After all, the cryptocurrency markets are still incredibly volatile right now, and things can easily turn against the Steem price. Assuming that happens, a Steem price drop to US$5 or lower would not be out of the question. For now, Steem appears to be in a good place, but this is only a momentary snapshot.
It does appear the Steem trading volume has picked up slightly. More specifically, we’ve seen US$412.5 million worth of volume over the past 24 hours, which is pretty high. Compared to some of the top altcoins, it is certainly on the higher end of the spectrum. It is evident there is a genuine demand for this particular currency, even though its use cases are still somewhat limited in nature. Then again, all cryptocurrencies are valued based on hype and speculation, and thus there’s no reason to think Steem would be any different.
Interestingly enough, it is the South Korean Upbit exchange which is driving virtually all of the Steem trading volume right now. Almost 87.5% of all Steem trades originate from this company’s KRW and BTC pairs, which is pretty impressive. It also shows that the rest of the world is far less interested in this altcoin, with Bittrex generating just US$33 million in volume. How all of this will play out remains to be seen. There’s a good chance we will see a higher Steem price in the near future, but there’s a very real chance a correction will follow shortly afterward.