GLX maintains position as staking APR continues to drop
GLX token has been one of the few bright spots in this very tedious bear market. The token has been quite the revelation and has contributed towards my sustenance.
In a bear market, the decision to live off crypto always seems mental. However, assets like GLX on Hive make it easier to deal with the underlying risk from all the crazy volatility.
At just about 9 cents per token, it is safe to say that the price of GLX token has surpassed all the doomish predictions by speculators and investors alike. Considering how fast the price dropped from the 25 cents range and the general state of the market, I reckon 9 cents can be considered fair value.
I, for one, was fairly certain we'll be seeing the price of GLX token nose dive into the abyss, and invariably open up an opportunity for me to buy a small stack. Alas, this hasn't been the case, as the token continues to maintain the 9 cents range.
GLX is currently trading sideways in the 9 cents range and I reckon it'll stay this way for a couple of weeks, at least. I certainly hope I don't jinx it after this publication as it tends to happen after I publish about a hive tokens.
At some point, we'll have to have a discussion about how much influence my publications have on Hive-based tokens but that's a conversation for another day. Right now, GLX is the main focus and considering the general state of the market, I'd say GLX is still looking bullish.
For what it's worth, I think GLX is only momentarily safe but I must add that the token value is walking a thin line. All it takes is one whale-level dump to nuke the entire market but I doubt that will happen anytime soon as most investors are aggressively compounding their stake.
Even without a massive whale dump, I think mid to low level investors could equally tank the price of the asset but it'll be a slow and drawn out process. However, I reckon this won't happen any time soon because at the 9 cents range, there seems to be enough demand to balance out the dumping.
The market data derived from Hive-engine shows a power struggle between buyers and sellers. Pointing at what I suspect to be a prolonged stay within the 9 cents range and potentially even surpassing 9 cents in the short run.
Sustaining 9 cents per token with the current state of the general crypto market is quite an impressive feat. The price is largely sustained by an increase in demand for the token due to the unusually high APR.
There seems to be a subtle internal competition between investors to get as many tokens as possible, leading to a staking frenzy. In fact, compounding your GLX token seems to be the "in thing" these days, as I tend to see a lot of people bragging about it.
This compounding by the community has largely contributed to the stability of the token as it continues to trade sideways in the 9 cents range. Naturally, the more tokens you stake, the GLX you receive and with the subtle competition, it is no wonder that the APR is reducing.
The fact is that more people are entering the fray to take advantage of the opportunity offered by the juicy APR. Despite dropping in recent weeks, the APR from staking GLX token is still pretty high and should be well above 400% these days.
As more GLX gets staked from compounders and new investors alike, we'll see the APR continue to drop. More investors are obviously good for the distribution of the token but in the long run, this could mean that the token starts dropping in the same way that SPS token dropped after the one-year airdrop period.
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