Steem Now Worth Twice As Much As Hive: Matters Arising

in LeoFinance3 years ago (edited)

Over the past week, the price of Steem has risen significantly to the extent that one Steem token is now worth more than two Hive tokens. This is nothing but a record high. It is, in my opinion, a bloated price because the reality is that Hive has a stronger community than Steem.

Therefore, Hive should at least be equal to or worth more than one Steem. Why then do we have this present strange market disparity in the price of Hive and Steem? The answer to this important question will be attempted in the remaining part of this short article.

There are a number of reasons, in my opinion, why Steem is now far more valuable than Hive. And for the purpose of this article, I will like to begin by mentioning the power down window. For me, this is the most consequential reason why Steem is leaving Hive far behind in terms of price.

Shortly after the historic fork that resulted to the birth of Hive, Steem had another fork which reduced the power down window from 13 weeks to 4 weeks. This, in my opinion, made the powering up of Steem far more attractive than the powering up of Hive.

Naturally, people would likely prefer where they can easily liquidate their stake than a blockchain where one could be trapped, trapped from taking profit because of the 13 weeks power down window. The above scenario was finely captured in a recent tweet by @therealwolf:

20210510_151729.jpg

By implication we have had more money flowing into Steem than Hive in the past few months. Now we have the result, Steem outpacing Hive. To make Hive more investor friendly, we might have to reduce the power down window as it is done on Steem and on LEO to four weeks or less. If anything, there has appeared to be a correlation between the power down window and the price of the token, Steem and LEO being testaments.

The second reason why I feel that the price of Steem is doing far well more than Hive at the moment is the Justin Sun factor. I personally do not like the face of Justin Sun but I can not deny his influence in the cryptospace. In the past few months, all his projects namely TRX, SUN, WIN, BTT, Steem, etc have done tremendously well owing to his influence and aggressive marketing skills.

On the Hive blockchain, we do not have a face such as Justin Sun but we do not need one. Hive is a community driven project and should remain that way if we must realize the Hive dream. However, there is need for us to intensify our marketing efforts to reach a wider audience and attract new investors. Steem has more advantage in that regard.

In addition, Hive has several hostile whales whose activities on the chain continue to scarce off potential investors. These whales assume the role of a god merely because they hold hefty Hive power. There are several instances in which old community members are bullied, shamed, intimidated, and even frustrated out for making unintentional mistakes. When these things happen, those members simply power down and exit. The consequence is that more Hive are available to be dumped on the market while potential users are scared off.

On a final note, there is an urgent need for the major stakeholders on Hive to chart a new course for Hive. We must not, and can not, afford to give Steem all the advantages. Hive must be alive to the changing times, for the growth of Hive and the prosperity of Hivers.

Posted Using LeoFinance Beta

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Steem has lower supply
Steem has higher Apr
Delegations of sp return around 100%Apr
4 week powerdown
...
Hive has a community lol
👍

Posted Using LeoFinance Beta

Hive has several hostile whales whose activities on the chain continue to scarce off potential investors. These whales assume the role of a god merely because they hold hefty Hive power.

Then that makes us Centralized..

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I have to read this...but whales have been dumping HIve and going to steem so maybe that's why steem is doing better price wise.

I don't like both chains...I mean it all comes to making money in the end, although once a upon i time I felt a belonging like its my home, I love values of decentralisation and stuff but reality there is politics, toxicity, downvotes, fights.

Ouch... still have to move on. I still find steem disguting, but I post stuff there for earnings, I have become like everybody.

Anyway goodday...

Maybe there is dump and pump activity of whales...selling of another blockchain coins like HIVE and buying up steem with it bringing price of HIVE down...who knows? and wise versa.