The current price of the Steem fluctuates around $0.124862; the total market capitalization is $44,433,235 or 6,065 BTC, which makes STEEM one of the 80 most popular digital currencies as of January 2020. The circulating supply is 355,859,478 STEEM, while the total supply is 372,833,572 STEEM. The daily trading volume is around $250,264 or 34.16215799 BTC. The most active exchange that trades Steem is Binance.
The all-time high of Steem, $8.57, was reached on January 3, 2018 – during the most famous cryptocurrency bull-run of Winter 2017-2018. On the other hand, the all-time low of Steem, $0.069192, occurred way back on March 10, 2017. Currently, the estimated ROI (return on investment) of STEEM is -80.58%, which means that $100 worth of STEEM bought at the time of the Steem launch would not yield any profit today.
The price chart of Steem reveals a lot of hype almost immediately after launch, as well as several significant peaks during the bull run of January 2018 and May 2018. Since then, the coin has been following a downtrend with almost no significant changes in 1.5 years. To be specific: at the beginning of 2018, the price of Steem was around $8; by the end of the year, it fell to $0.23, which is almost a 35-fold decrease. One of the reasons for that is, for sure, the end of the bull run and the correction phase that dominated the market. However, the decreasing popularity of the platform was another factor.
Steem is conceptually different from many cryptocurrencies out there: the supply of STEEM is not limited to a specific value, and no intermediary burning takes place. Instead, the coin derives its value from the usage of the platform. This is why volatility is considered one of the inherent properties of STEEM. Therefore, the overall decline in the platform usage is concerning for the price of STEEM, primarily if the deterioration is caused by user experience rather than by macroeconomic factors.
Steemit gained immediate popularity in the crypto community right after its creation: it provides the users with a unique way of earning digital money for their content. Nevertheless, the reward distribution system has been somewhat unclear, and it was hard for newcomers to gain popularity within the platform. This led to a decrease in the interest in the platform and, accordingly, the STEEM price. However, in September 2019, the Steemit team announced a significant update of the rules and the reward distribution system. The upcoming version will be called NewSteem.
Once the new version with an improved reward system is implemented, there are good chances for a revival of Steem popularity and an increase in its price. Changelly predicts a price of $0.4-0.6 in 2020.
What is Steem
Steem (STEEM) is a native currency of the blockchain-based social media platform Steemit. Created in 2014 by Dan Larimer, who later also contributed to the creation of EOS, Steemit runs in a decentralized manner. It means there is no central authority, no censorship, no downtime, and no data vulnerability or abuse. Therefore, the primary goal of Steemit is to solve endless problems experienced by other social media platforms like Facebook or Twitter.
For the sake of simplicity, Steemit can be compared to Reddit. The difference is that content creators, commenters, posters, and voters all get monetary rewards for their activity in the ecosystem.
The supply of Steem is automatically increased by 100% each year and will keep doing so infinitely. This reduces the effect that miners have on the network. New STEEM coins are created every day, which is why cryptocurrency experts recommend not to hold it for a long time. Instead, there are two more internal currencies within Steemit: Steem Power (SP), which represents the user’s power within the network, and Steem Dollar (SBD) – a stable coin tied to the price of the dollar. This means that some of the resources of the system are used to keep the price of 1 SBD stable and equal to 1 USD.
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