Blockchain

Qtum prices rose by 160% as the project’s focus on DeFi paid off

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After rising 1.510% in 2021, Quantum The price hit a record high of US$35.70 on May 7. This is a relatively obscure altcoin launched in September 2017. It is a fork of Bitcoin Core 0.13, but it also integrates the Ethereum Virtual Machine (EVM) and smart contract execution functions.

Follow Bitcoin (Bitcoin) It fell to US$47,500 on April 23. QTUM faced a 52% correction within 4 days and then fell to the bottom of US$10. However, as QTUM initiated a 160% rebound in two days, reaching a peak of $35.70, the situation for altcoins improved on May 5.

The price of QTUM is USDT’s Binance. Source: TradingView

Qtum combines Bitcoin’s transaction model with Ethereum smart contracts

The main goal of an open source platform is to provide simple tools that anyone can use to create decentralized applications (dApps) while maintaining a high level of network security. The project chose a slightly different version of Proof of Stake (POS) to prevent malicious nodes, and a certain number of blocks are required for the stake token to be valid.

In addition to having an on-chain decentralized governance protocol, the Qtum blockchain also supports smart contract programming languages ​​other than Solidity. Token holders vote on network parameters such as block size and basic gas fee.

Although the Qtum blockchain has an on-chain governance system, it also has an off-chain process to approve and process more important protocol changes. The agreement recently identified decentralized finance (DeFi) as a focus area and steps to attract new projects.

With the daily online trading volume peaking on May 6, this strategy seems to have finally paid off.

Daily Qtum blockchain transaction data source: qtum.info

Fixed improvements and DeFi hub make Qtum price increase

Offline mortgage has been implemented in August 2020 and has now grown to more than half of the mortgage activity on the Qtum blockchain. Investors who do not want to deal with their own nodes can conduct non-custodial entrustment of their coins.

On March 17, Value Network announced plans to migrate from Ethereum due to network congestion and high costs.It’s now Migrate to Qtum smart contract and DApp platform And received development grants to accelerate the transition.

On March 31, Patrick Dai, the founder of Qtum, stated that the agreement is working to enable Filecoin (FIL) smart contracts through the Qtum network.

The network changed from a 128-second average block to a 32-second average block through a hard fork on April 30. Now, the average four weeks required for medium-sized stakeholders to take effect has been reduced to one week.

Ethereum compatibility means higher interoperability

Interoperability is another reason for QTUM’s recent rebound. The team is developing Neutron, an agnostic interface that allows virtual machines to run on multiple blockchains. In addition, its own DEX called QiSwap enables users to build DeFi applications and provide liquidity on top of the Qtum blockchain.

Data from VORTECS™ Cointelegraph Markets Professional Edition Before the recent price increase, the outlook for QTUM began to be found to be bullish on May 5.

Cointelegraph’s unique VORTECS™ score is the result of an algorithmic comparison between historical data and current market conditions. These market conditions are based on a combination of data points, including market sentiment, trading volume, recent price trends and Twitter activity .

Comparison of VORTECS™ score and QTUM price (white). source: Cointelegraph Markets Professional Edition

As shown in the figure above, the VORTECS™ score began to climb on May 5 and reached the highest point of 71. It is worth noting that the VORTECS™ score reached its peak approximately 24 hours before the price rose by 100% to a new all-time high. $35.70.

Qtum aims to compete with serious smart contract competitors, such as Cardano (Have), polka dot(point), VeChain (veterinary) And Solana (Sol), the market value of the project reached a staggering 2.74 billion US dollars.

However, in order to add value to QTUM, investors may want to see more decentralized applications and total value lock-in (TVL) on the network.

The views and opinions expressed here are only Author Does not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risks. When making a decision, you should conduct your own research.