Horrible Price Drop: Will Nxt’s Price Keep Plunging?
Nxt does not function like Bitcoin and other cryptocurrencies. While Nxt may be used for trading fiat or other cryptocurrencies, the altcoin is used mostly to facilitate transactions within the Nxt platform. This is the main reason Nxt price remains low even if the digital currency has been around since 2013.
When crypto exchanges listed Nxt for the first time, its starting price was US$0.02. Its price had continued to stay so low until it surged to US$1.91 on December 24, 2017. However, the coin was not able to maintain its price as it crashed to US$0.67 at the end of the year. From then, NXT had remained less than US$1 until the end of the first quarter of 2018, causing concerns among its holders. What could have caused the significant drop of Nxt price?
Ardor and Ignis: The Causes of Nxt’s Price Drop
Crypto analysts have pointed out two possible reasons for the plunge of Nxt’s price: the Ardor launch and the Ignis token airdrop. Both of these projects are by Jelurida, the company that develops Nxt.
Ardor is a blockchain-as-a-service model designed for businesses. Its platform has a parent chain-child chain architecture in which businesses can build their own blockchains (child chains) within the main Ardor network (parent chain). The parent chain carries all the features of the platform such as asset trading and currency exchange. Meanwhile, businesses can choose which parent chain features they want to use on their child chains using ARDR tokens.
Jelurida launched Ardor in order to solve issues that have kept businesses from using blockchain technology. These issues include blockchain bloat, single-token dependency, and lack of customization features.
By solving blockchain-related problems, Ardor became attractive to businesses. And since it also solves some of Nxt’s issues, crypto holders have considered Ardor as a better version of Nxt. This comparison is one of the reasons why Nxt’s price remains low.
Ignis is the first child chain linked to the Ardor blockchain. Because it is a child chain, it inherits functionalities of both Ardor and Nxt, except for Nxt’s currency-forging feature. Ignis also has unique functions, coin shuffling for anonymity and composite phasing which enables users to sell company shares.
Jelurida launched an airdrop of IGNIS tokens to NXT users in December 2017 in which NXT holders could get 1 IGNIS for 2 NXT. Many crypto holders decided to buy more NXT to get a hold of these tokens, leading to a surge of price on December 25, 2017. However, when the airdrop ended, some of the holders withdrew their NXT coins, leading to the crash in price.
These two projects are factors to Nxt price’s downward trend. But NXT holders should not panic as Ardor and Ignis are not meant to replace the cryptocurrency and its platform.
What is Next for Nxt?
Crypto analysts expect that the hype surrounding Ardor and Ignis will continue to keep Nxt’s price low. On the other hand, they also predict that the price will stabilize as soon as the two projects get their footing in the crypto market.
Although Jelurida is working on Ardor and Ignis, the company assures that it will continue to develop Nxt and its blockchain. One of the Nxt development plans is for scalability. As of 2017, the Nxt blockchain could process 100 transactions per second, and Jelurida plans to invest more resources to make Nxt more scalable.
Despite Nxt’s price crash in 2017 and the altcoin’s slow rise in value, NXT holders should still be optimistic for the future of the crypto coin. Nxt’s price may be low, but it still holds value for powering a platform that helps individuals and organizations in their businesses. Furthermore, the cryptocurrency is still an attractive coin to invest in because it addresses problems that pioneer coins like Bitcoin have.