Quick Overview of BAND Protocol
BAND Protocol tackles some very interesting problems existing within the current blockchains. It provides access to outside data to existing blockchains. This allows for a very interesting concept that is still very new and a few other players in the crypto ecosystem are trying to work for addressing the same. This concept is Interoperability. To get a clear understanding of what BAND is trying to achieve you need to take a look at this use case.
Decentralized Finance Dapps needs continuous data regarding the price changes in cryptocurrency to ensure Token Swaps, Lending and Borrowing is taking place at the correct prices. Since current blockchain networks are not efficient in communicating with outside data they are unable to fetch the price of the various cryptocurrencies. BAND simplifies this by providing this data by its own built-in Oracle which the developers can take advantage of and have a stream of correct and updated prices all the time. This is just one of the use cases.
BAND maintains a database of major crypto information from providers like Binance, Coingecko, and provides the price related or other data to various DApps. What is more interesting is that BAND has its Oracle framework capable enough to work with various blockchains, thus it can pull data from various sources and provide it to different blockchains like ETH or Cosmos blockchain.
This use case of pulling data and interoperability can bring limitless applications to existing blockchain and thus projects working on this problem can have multiple other blockchains trying to associate with them. In-short using BAND can provide other blockchains to significantly increase their use-cases in the real world.
BAND's 100% RALLY
One major thing to note is that another project that is tackling a similar problem is Chainlink (LINK) and we all know how it is crossing every limit and rising in prices each and every day, creating a new All-Time-High every passing day. Will BAND follow the same? It already has crossed its ATH after rising more than 100% in the last 30 days and is now stabilized above it for 2-3 days now.
BAND still has a very low market capitalization even after a rally of 100%.
Ever since BAND released its roadmap for Phase 1, BAND has been on an impressive rally. This rally was further boosted by several partnerships that BAND over the past few days started revealing.
In collaboration with Atomic Wallet, you can now stake your BAND for an APY of 17%. So if you are long into BAND might as well get those sweet returns.
Look at the impressive rally of BAND.
Even if you bought it when it was at its local top in the above image and hodl'd it you still are in good profits since it recouped all its losses and then made even more profit. This has been a parabolic rise since the roadmap revelations.
Though there are some concerns about whether we will see a dump as big as the rise.
During this rally, we also saw the number of active addresses increase. Active addresses are those addresses that are used to move a coin to an exchange. You can see in the below graph how since the rally no. of coins sent to exchanges have increased.
![undefined [11.35.00, 16 Jul, 2020].png](https://images.hive.blog/DQmP8oJ5kEHMVARZow3AyZbNcDmwiX91dpsvbCJNQLc7v2z/undefined%20[11.35.00,%2016%20Jul,%202020].png)
![undefined [11.46.15, 16 Jul, 2020].png](https://images.hive.blog/DQmUgit2F69YQmdsqYqF8i9aUkF9TwjMVw4Dupin2c9JMT6/undefined%20[11.46.15,%2016%20Jul,%202020].png)
Almost 1 million dollars worth of BAND has been moved to prominent Exchanges. These are all sellers looking to sell their BAND. Since why else would anyone move their BAND to exchange if they are not looking to sell. This has created a sell wall for bulls. And the price to further increase this sell wall needs to be overcome.
This huge amount of money and BAND coming to exchanges could be from multiple parties or from a big Whale. The question remains whether bulls are strong enough to absorb this sell pressure or not because if not this sell wall may convince others to sell and start booking profits as well thus price dumping in the market.
I for one think a short term correction is inbound. Nothing ever lasts such a meteoric rise but I am going purely on my gut feeling. Rest lets see how the market responds. It's the Altseason after all.
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