Steem Almost Back Where We Started

in blog •  3 years ago 

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Steem is sitting at around 22 cents, which is about 7c more than before the bull run up and represents only a 50% increase in the price. That is a tiny increase considering the bull run we have been on. Bitcoin's still up 800+ percent and Ethereum is up more than a 1,000%.

So why can't we ever seem to sustain an increase in price? My own belief is that the supply and demand are out of whack and that with the DeFi options available on the market today, investors are placing their capital there to earn a return on their investment passively rather than blog and try to earn that way.

Demand and Supply

Now, if demand has gone down, then supply has to go down to match it, otherwise, the price tanks. Supply in this case refers to supply hitting the markets since that's where the trading occurs.

So how do we reduce the supply? Simply by not trading at these low prices. It becomes a self fulfilling prophecy when everyone just accepts the market price instead of selling at a price that you think the asset is worth.

Of course, you may believe that the token is worthless and then in that case, getting anything for it is a bonus, i suppose.

While everyone has a part to play in this, since big accounts control more of the supply, i think it is more important for them to let go only at higher prices above the market price. This way, we won't see buyers trying to reduce their bids in order to see how cheaply they can acquire steem.

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