STEEM is decentralized so first of all this is one of the most major point which we can keep in consideration when we are talking about resiliency of this blockchain ecosystem and STEEM is not controlled by single authority that's why this level of fairness and transparency is due to decentralization so that's why it is less susceptible for market manipulations.
Community driven approach is another one of the most major factor that we can keep in mind while talking about resiliency of STEEM ecosystem. This is an ecosystem which is built by creation of content and curation of contents for giving reward to users for their contributions that they give to this platform so it fosters are sense of active participation and engagement st steem blockchain and even if there are market down turns then community always remain committed to create and curate content and always remain here for the support of each other so it makes steem ecosystem most valued.
STEEM ecosystem is also highly adaptable according to the trends because with the passage of time there are new features functionalities and innovations are introduced for the enhancement of experience of our all users and if I give an example then we all know that SP delegation and communities creation aur providing different users more opportunities to engage and participate in this ecosystem and these level of innovations and updates are very helpful for attracting new users because it is just like evolving with the market fluctuations.
STEEM ecosystem is also increasing it's more collaborations and partnerships by showing its integration with some particular platforms and apps which is spreading more utility and accessibility of this ecosystem to new users and as an example I can say that steemit is social media platform which is STEEM based and it has also partnered with some other particular social media platforms for permitting users to cross post their quality content so that it may reach to more audience and collaboration with some particular external platform is a great way to minimize risks that are directly linked with only on STEEM ecosystem reliance.
Just like other cryptocurrencies STEEM is also volatile with the passage of time and according to the trends of market but ecosystem have inside some mechanism that are implemented for mitigation of negative effects of these volatility. If I give an example then we all know about SBD that it is stable coin which is providing users and opportunity to hold more assets in ecosystem for reduction of their exposure with market fluctuations and gives a sense of stability to its users.
Community governance is also one of the most major and significant aspect that we should never forget while talking about your resiliency of STEEM ecosystem.Stakeholders are open to vote on changes to ecosystem and this level of participation is permitting community to adapt and to give its response in different market trends and challenges in a most effective way so in this way always at this decentralized platform the scenes are making in a collective way by keeping in mind some of the diverse perspective and interest of over all participants of ecosystem.
To have a proper checking balance at number of transactions on the basis is one of the most strong and good indicator to check the over all activities level and engagement in this ecosystem because if transactions volume is high then it would Foster are more active community so there is a direct relationship between transaction volume and community activation and when I talk about literal meaning of activity level at this blockchain then it means that uses are interacting with each other through curation and creation of content as well as they are also active in transffering STEEM tokens and in doing power up actions as well as many more actions associated with it.
What is the level of community participation it is also very helpful in determining activity in STEEM ecosystem so there is a need to check that which is the level of engagement of users with each other and are they active in responding each other and in visiting each others belongs as well as are they active in posting their content which is of high quality and are the active in voting the post of each other if it is good and are the active and down voting the post if there is any suspicious activity. So if this level of consistency is present then it means that users are interested in the ecosystem that's why they are showing their active contribution for its growth and development so if everything related to community participation is in increase level then it means that it is a positivity for its overall ecosystem.
When I talk about distribution of tokens then it is also one of the most key factor which we should give in mind when we are talking about robustness of STEEM ecosystem so well distributed token ownership shows that power and influence is in hands of each and everyone and not a single authority is present here who is taking over the control of fool ecosystem so when each and every user is supported through these tokens due to their diverse contribution then it would diploma mode all level of more democracy and another words democratic governance structure. By the analyzation of distribution of tokens like number of unique holders which are holding tokens as well as concentration of the token ownership can let us know about level of fairness going on in the over all STEEM ecosystem.
On chain analysis is also very helpful to understand if there are some significant issues arising in its ecosystem and if there is a need to improved any area in ecosystem like if there is any decline in daily transaction activity and we are observing that community participation is going to be low with the passage of time then it will indicate that people are losing interest in STEEM ecosystem so there is a need to introduce more and more interesting projects and there is a need to increase adaptability and innovation in the overall ecosystem.
Relative strength analysis is an analysis in which there is comparison of two cryptocurrencies like if we are comparing the performance of STEEM with another Cryptocurrency then it is an indication that we are doing relative strength analysis. It is very helpful for investors in understanding that how performance of STEEM is relative to its peers currencies.
In bullish trend we all know that there is a positive trend and currencies always move upward so positive negative strength analysis of STEEM would indicate the price of it is rising. If I give an example then you can suppose that STEEM price has been increased by 20% from the past month so we can say that on the other hand average price for other currencies is decreasing by just 10% so it is a suggestion that STEEM has more momentum to increase in its price and with its peer currencies it would continue to move upward in the nearest future also.
In bearish trend, we all know that overall market is down and all currencies face down trend which is a basically negative market sentiment so now there would be relative strength analysis negative for STEEM and good indicate that this token is not performing well in this trend and it is in decline in its price so now I can revert the above example in this way that STEEM price has been decreased by 20% from the past month so we can say that on the other hand average price for other currencies is increasing by just 10% so it is a suggestion that STEEM has less momentum to increase in its price and with its peer currencies it would continue to move downward in the nearest future also.
In this way by the action of relative strength analysis investors feel very easy to find out significant opportunities in fluctuating market conditions like if there is positive relative strength for some particular currency during bullish market then it would indicate to all investors that definitely there is a strong potential for it to grow in future and investors would take advantage of it and they would start to invest in that currency.
If there is negative relative strength for some particular currency during bearish market then it would indicate to all investors that definitely there is a strong potential for it to go in decline in future and investors would take advantage of it and they would start to sell that currency for their protection from future loss.
Relative strength analysis is great to use by investors to make decisions related to investment strategies it would be more good if some other indicators would be used for technical analysis with it for more right decision making.
Firstly protocol upgrading in the STEEM ecosystem can be impactful relative strength dynamics by having its influence on overall market sentiment and investor confidence. If there are some positive upgrades like enhanced level security measures and enhanced scalability, then it could always attract more investors and increase demand for STEEM. This increase level of interest and positive perception can lead to a positive sentiment in relative strength when market participants in high ratios see positive sentiment for growth and wish to be part of the ecosystem.
If protocol upgrades are negative and if there are uncertainties, it can have negative impacts at relative strength. Market participants try to be cautious and feel hesitation to invest, which leads to a decline in relative strength. That's the reason it's significant for protocol upgrades to stay well-communicated and for the STEEM community for addressing if there are any concerns or uncertainties arising.
There is most significant implementations of fundamental events like protocol upgrades is the impact at the perception of the ecosystem in its participants. Positive upgrades re helpful in enhancing credibility and reputation of STEEM, which is a source of more attention from investors and traders And potentially increasing the overall value of ecosystem. This is a kind of positive perception which can strengthen the relative strength of STEEM and making it much appealing to participants of market.
On the other hand if protocol upgrades are executed in poor way or if they are resulting in negative results, it can negatively affect market participants' perception of the ecosystem. This negative perception cause a decline in relative strength as investors may lose confidence in STEEM and search out for another alternative investment opportunities and probabilities.
It's very significant to consider that overall perception of market participants in ecosystem is not completely influenced by protocol upgrades. There are some significant factors which include community engagement, development progress, partnerships and collaborations, and trends of market also play a major role.
On-chain analysis is defined as examination of the data and activity which is going to happen at STEEM blockchain. This analysis can provide information should STEEM ecosystem health, robustness and vitality. For example, after having search out at metrics such as volume of transactions,active addresses, and token distribution, investors can monitor the level of engagement and activity within the STEEM ecosystem.
If I talk about relative strength assessment then Relative strength is a measurement of how well a particular asset is in comparison to others so , in this case, STEEM, is performing well in comparison to other assets in market. In this way it is helpful for investors in understanding that either STEEM is performing well or not with its other peer currencies. These are the assessments considers factors like trends of price movements, trading volumes, and overall market sentiment.
By integration of on-chain analysis with relative strength assessment, investors can gain much detailed understanding on the overall strength of the STEEM ecosystem. Suppose that at on-chain analysis it is revealed that there is a significant increase in volume of transactions and active addresses at STEEM blockchain so then it would be the indication of a higher level of user activity and engagement within the ecosystem, so now its a positive signal.
Now it's a time to compare on-chain analysis with relative strength assessment and note that STEEM price has indicated an upward trend in comparison to other cryptocurrencies, so now it is fostering a positive outlook. This combination is suggesting that not only is there pump in level of activity at STEEM blockchain, but also market participants are knowing the potential value of STEEM and want to invest in it.
On other hand if through on chain analysis we see decline in price of STEEM or STEEM price has indicated an downward trend in comparison to other cryptocurrencies, so now it is fostering a negative outlook. This combination is suggesting that not only is there dump in level of activity at STEEM blockchain, but also market participants are knowing the declining value of STEEM and want to sell their holdings for protecting theirself from any loss.
I want to invite here
@abdullahw2
@ngoenyi
@ashkhan
@hamzayousafzai
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
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Your understandings right into on-chain metrics plus RS evaluation transact important viewpoints on the wellness and also prospective possibilities within the ecological community specifically in differing market problems.
Moreover your conversation on the ramifications of basic occasions such as method upgrades, highlights the relevance of clear interaction along with favorable understanding amongst market individuals. Fantastic Job
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TEAM 5
Congratulations! Your post has been upvoted through steemcurator08.Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
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Thanks @sduttaskitchen
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@sahar78, your article is a perfect presentation to explain the struggles of the Steem ecosystem. Your combination of technical analysis with thoughtfulness is very important. Congratulations and keep doing such analysis in the future.
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