By Nathan Ferguson
Constellation (DAG) has recently experienced a massive spike in its price and currently sits at $0.18 per token, which is an increase of more than 30% overnight. There are a few reasons for this, which this article will explore in detail.
Among the factors that shall be discussed, we will be mainly talking about low transaction costs, a new wallet release, the consensus mechanism, and a general pivot towards decentralized finance (DeFi).
Consensus mechanism
Although the world’s most dominant cryptocurrencies, Ethereum (ETH) and of course Bitcoin (BTC), largely remain the crypto of choice for many when it comes to longevity as well as consistent profits, there have nevertheless been numerous concerns regarding the consensus mechanisms of the flagship crypto and the biggest altcoin. These concerns have thus contributed to both assets going through sideways price action in the previous couple of months, which had also resulted in other viable projects receiving considerable attention.
Among these other projects, Constellation had managed to outperform many of the altcoins in the market as it successfully survived the sideways action. As such, DAG was able to reach a new all-time high price yesterday after rallying by more than a whopping 350% in order to go from its previous price of $0.037 on the 22nd of June to its current aforementioned price today.
Constellation was able to achieve this milestone in part due to it using a directed acyclic type of graph architecture in order to gain a consensus that can exhibit infinite scaling (theoretically speaking).
The three reasons
The main reasons for the recent success by DAG can be attributed to 3 primary factors. Firstly, a fully operational decentralized exchange (DEX) had been released. Secondly, the list of international partners and use cases for the project keeps growing, and lastly, it was due to Constellation’s ability to manage data as well as its network being able to provide very scalable transactions at a relatively low cost.
Furthermore, many of the new partnerships will help grow the ecosystem of the project, and this is yet another indication of Constellation’s strong fundamentals. Some notable partnerships include the likes of the U.S Airforce and Amazon Web Services. Sector-oriented collaborations with Kucoin exchange and Chainlink (LINK) had also been established, along with a new partnership with LCX (Liechtenstein Cryptoassets Exchange), which is of the utmost significance as this exchange had agreed to provide support for DAG’s listing and the future tokens which will be formed utilizing the network’s L_0 Token Standard.