The OKB/USDT Asset Is Still Under The Sign Of Bull After 3 Months Of Trading

[NateWong0929]

An active investor and research analyst called Sergeenkov’s Blog has posted a price analysis about OKB after 3 Months of trading. Please click the above link to look over the whole article. All right reserved by Sergeekov’s Blog.
Summary
Why has OKB outperformed a majority of crypto assets?
OKT, the native token of OKChain, will be issued to resolve the dilemma that the inflation of exchange tokens will destroy the public chain ecosystems.
The creative token design of OKB and OKT is helpful to eliminate the issues most of the other exchanges are facing.
While countries like the US have set plans in motion to jump-start their economies, investors, on the other hand, are coming to terms with market uncertainties against the backdrop of the downtrodden state of the global economy. However, in the crypto scape, market experts are predicting a possible rebound of digital asset prices, even as crypto firms continue to show no signs of slowing down amid the coronavirus scare.
Leading the charge are crypto exchanges, which, to an extent, have conditioned their businesses to withstand crisis borne out of extreme volatility. One of such exchanges is OKEx. OKB, issued by OK Blockchain Foundation, is accepted by the exchange as a global utility token, and it has stood out as one of the best performing cryptocurrencies in the market since the start of the year. Here, we will explore the price trend of OKB and the underlying factors propelling its viability.
OKB Performed Since 2020 Kicked Off
The price of OKB stood at the $4.30 mark, up 3.82% in the last 24 hours. This development reiterates, albeit to a lesser degree, the price response of the token whenever the OKEx ecosystem achieves a milestone. It will interest you to know that the price of OKB at the beginning of January was $2.30. Hence, regardless of the economic downturn resulting from the coronavirus pandemic, OKB has managed to sustain a positive price movement in 2020.
In January alone, the token recorded a 25% surge in valuation and a 34.1% monthly fluctuation in the OKB/USDT crypto pair. In mid-February, OKB continued its uptrend and reached an all-time high of $7.51, with ROI hitting a staggering 322.29%. However, in tandem with the overall performance of the crypto market and the global economy as a whole, OKB experienced extreme volatility in March that caused its price to fall steeply. At the height of this downtrend, the token sold for $2.59. Nonetheless, the digital asset has shown a slow but steady recovery, sparking speculation as regards the viability of the crypto asset in current market conditions.
Why Has OKB Outperformed A Majority of Crypto Assets?
There are several factors responsible for OKB’s impressive price run in 2020. The unprecedented spike in the price of OKB in February was linked to the announcement of the OKChain testnet. OKChain ushers in a new frontier for the OKEx ecosystem. It provides all the benefits of a multi-layered public blockchain for decentralized applications. Also, OKT, the native token of OKChain, will be issued to resolve the dilemma that the inflation of exchange tokens will destroy the public chain ecosystems. By theory, the token price will keep increasing, but it is in contrast to the development of chain systems because developers won’t be able to afford the cost for building DApps and they would speculate on the token price rather than using them to work on their products. According to the announcement, the exchange decided to map 100% of OKT produced from the genesis block to OKB holders, which could be a driving force to OKB price increase.
Other developments fueling the OKB narrative include the move by OKEx to increase its crypto storage support capacity with key partnerships, an introduction of the Euro deposit channel, and expanding availability beyond the OKEx ecosystem. Importantly, the exchange has opted for a unique deflation framework, albeit with familiar value-retainment elements.
“The creative token design of OKB and OKT is helpful to eliminate the issues most of the other exchanges are facing right now — the deflation of exchange token will destroy their chain ecosystem” said Jay Hao, CEO of OKEx, “ OKEx has always take our users’ interests as the first priority by diligently listening to our community, creating substantial values to our supporters. This year, developing the OKB ecosystem will be our top priority task, and I believe OKB holders will enjoy a much wider variety of benefits in the long-term period.”
To ensure that OKB is impervious to inflation, the platform made drastic changes to its supply mechanism. The Malta-based exchange adopted a buyback and burn program. OKEx has used a fraction of its revenue (officially 30%) from spot trading to fund this program and reduce the number of OKB tokens in circulation. Out of the 1 billion OKB created, OKEx has already burned all unissued tokens totalling 700 million OKB. With the help of the implemented buyback and burn program, the exchange has reduced its circulating supply from 300 million OKB to 282 million OKB. Hence, the token is the first digital asset to attain absolute deflation, which experts believe has an immeasurable impact on the price trend of the token.
It is difficult to gauge how much impact this novel deflation mechanism will have on the future price of OKB. Similarly, there are no templates viable enough to test the viability of OKEx’s push to cut off the supply of its native token. However, one thing is certain: OKB is one of the digital assets spearheading the projected altcoin season of 2020.
OKB/USDT Price Analysis
At pixel time 2351 HRs UTC+3, OKB was up seven percent in the last 24 hours. Remarkably, its trading volumes had shot up 40 percent.
Prices are trading within a tight trade range and notably oscillating inside Mar 11 and 12 bear candlesticks.
However, unless there is a sharp uptick of prices above Mar 19 high of $4.8, reversing sharp losses of Mar 11, candlestick arrangements suggest that OKB may slide back below $3.8 towards $2.
On the flip side, a close above $5 could see bulls flow back and OKB rally to February high of $7.5.
Disclosure: This is the opinion of the author and is not investment or trading advice. Do your own research.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.