The cryptocurrency market is well-known for its volatility and the AR (Arweave) coin took part in this roller-coaster with its price jump up 20.79% to $ 26.85 in one day alone. Caused by the broader cryptocurrency market slump, this crypto has witnessed a large decrease in the market cap, coming down to around $1.76 billion now, and currently being classified as the 50th biggest crypto regarding market cap.
Experts are studying different factors that can explain this sudden drop in the starlings’ numbers. According to Dr. Sarah Jensen, a blockchain expert from Crypto Market Insights, this downturn might be related to the fluctuation of the crypto market and on the particular difficulties of the Arweave platform. “If we take into account the entire crypto-sphere and the fact that it is going through some major fluxes, Arweave is affected even more than other currencies, due to the current questions that are related to the data storage services sustainability and the recent technical problems”, she continued.
A staggering reeling is experienced by both the investors and users of Arweave. James McDougall, a digital archivist and long-time holder of AR, shared his concerns: “This Arweave’s promotion was that it would not be possible to change the storage of data permanently and at guided cost. However, today the things happening are not good for the investors so the price gets lower. I think I am holding on because of my faith, but let me tell you what a roller coaster it has been.
The fact that Arweave’s trade volume has increased to $201.35 million as of today, representing a massive rise of 102.19%, which is not a usual case when the price falls, shows that Arweave is going in the right direction. These may mean that investors are selling due to panic or maybe seasoned players who think that is the price they buy-in at and they expect a recovery. The volume-to-market cap ratio reaches 11.57% signifying active trading activity in the recent past after an abrupt price drop.
A fully circulating supply of 65,454,185 AR makes the nearly fully diluted market cap around $1.77 billion, with a total supply of 66 million AR which represents 99.17% of the maximum supply. This data signifies that nearly all the Arweave planned supply is already in circulation, which might result in the price recovery since there are no significant dissuasions of incoming supply.
“Arweave’s technological base is substantive since it is aimed at changing the data storage business on the blockchain. On the other hand, the investors’ gut feeling is shaky and the market reflects that. Therefore, the CEO will need to assess what specifically is causing the challenges and address them moving forward,” Dr. Jensen added.
The present slump in Arweave, on the other hand, illustrates a general situation of risk and uncertainty which is the main reason for the drop in the price. While the technology offers hope, perhaps for professionals engaged in digital archiving industries as well as in digital security issues, the future appears full of uncertainties.
