Hive hit one dollar earlier today and for the first time in a while I am seeing more excitement about hodling rather than dumping into the market. I am sure a couple of people are probably powering down and clawing back some profits but that is only fair.
However, all those tokens are going into stronger hands holding for much better things up ahead.
One of those things is the permanent sink for Hive being created by the 3Speak team for their new token. That in itself should make you bullish if you are an investor on Hive because it will serve as a black hole for liquid Hive.
Basic economics tell you that scarcity causes an increase in price. But that increase does not happen in a vacuum. It has to be matched by demand. To increase demand you have to give buyers a reason to hold the token in the first place.
That is where we are at the moment.
The latest change allowing Hive users to earn interest on HIVE POWER, HBD, and HIVE SAVINGS at around 3% APR is fantastic although it is not very competitive. You can definitely get better value elsewhere but it is a start.
How can we improve that?
That is the question that we need to ask.
I have always insisted that blogging should just be one of the things Hive should be able to do but not the main thing. You should be able to blog and earn author and curation rewards. However, that is very niche and there is little room to grow. Hive should give people a bigger reason to hold the token.
I like to give an example of $RUNE that I got introduced to earlier this year.
DeFi DApps are performing exceedingly well because when, in the case of $RUNE, you throw in your liquidity and become an LP you earn the native token back which you can also pool giving you more incentive to continue hodling the token.
The more scarce the token is the more valuable it becomes because there is consistent growing demand.
We have already heard the news that wHive will be coming soon and maybe bHive as well should be in the works as well which would allow Hive users to participate in the Ethereum and Binance Smart Chain DeFi ecosystems.
Also, being able to collateralize Hive and borrow HBD or even Hive could earn lenders interest at a higher APR than the one currently available of 3%.
There are so many things that can be incorporated into the Hive blockchain to encourage holding the token.
At that point we will be talking about $5 Hive or even more. One thing is clear though, Hive's future is incredibly bright.
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