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Factors Responsible for the Recent Performance of NEM

cryptoknowmics.com 16 May 2022 21:35, UTC
Reading time: ~2 m

NEM is one of the oldest blockchains in the crypto space. The native token of the NEM blockchain is XEM. It was launched in March 2015. NEM just like Bitcoin facilities peer to peer transactions but uses the Proof of Importance consensus mechanism. In the past 7 days, the price of XEM attained a 7 days low price of $0.03739 and is presently trading at $0.06173 at the time of writing. This is representing a 65.1% increase within 7 days. This gives a good return in short duration to investors who bought at such a low price. It is ranked in the 88th position in the CoinMarketCap ranking of cryptocurrencies. Some of the factors that are responsible for this recent surge in the price of NEM (XEM) are:

Increased interest in peer to peer transactions

One of the reasons for the creation of the NEM blockchain is to facilitate peer to peer cryptocurrency transactions. With the unstable positions of government on cryptocurrency and the very low transaction fees on XEM transactions, traders are inclined to trade with XEM instead of Bitcoin so as to save cost. This has led to its recent increase in price. Increased trading volume The trading volume of NEM native token XEM increased in the past 7 days. It moved from about $16.08 million on May 7th, 2022 to $51.66 million on May 14th, 2022. This represents over 221% increase in the volume of trade in the past 7 days. Since the increase in trading volume can impact positively on the price of a crypto asset, hence the recent performance of NEM. Presence of blockchain centers in Asia Asia is one of the continents with high adoption of Cryptocurrency. According to Chain analysis data, cryptocurrency active in Asia has grown by over 700%. Also, data has it that about 31% of all cryptocurrency transactions are done in Asia. NEM is among the only few cryptocurrencies with a blockchain center in Asia. This has a way of increasing its price once Asians get news of any positive forecast. Rewards to its holders Rewards to miners are only given to those who hold at least 10,000 NEM. As more transactions are done with the wallet, eligible users get mining rewards. With this, more users hodl the crypto since about 100% of its total supply is in circulation. In conclusion, the future is positive for NEM holders, as the price predictions from different media platforms are bullish for its native token XEM.

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