A broader selloff in the crypto market initially affected NEM (XEM) price, but the XEM selloff increased further after the theft of $530 million of NEM coins from the Japanese Coincheck cryptocurrency exchange. The NEM Price Crash looks set to continue but why?
Improved market sentiment and an easing of regulatory concerns, lifted the entire cryptocurrency market throughout last week – well almost entirely, NEM failed to rise. Since hitting $1.94 early in January, NEM price hasn’t been able to rebound since.
This Altcoin’s price continues to trade in the range of $0.55 with sideway moves over the last week.
Consequently, IOTA and Dash have outperformed NEM in terms of market capitalization – the NEM coin ranking dropped to 12th from its earlier place in the top ten.
IOTA and Dash Replace NEM?
Source Image: coinmarketcap.com
IOTA (MIOTA) and Dash (DASH) rebounded significantly from their previous lows over the last week. IOTA price rallied more than 5% in Friday trading, extending its gains over the week. The price is over 70% from its earlier lows of $1.21 on Feb 6. Its market capitalization stands almost at $6 billion in Friday trading.
The Dash price has also been flying high over the last couple of days; helping the market capitalization to surpass the level of $5.5 billion. Whereas NEM wasn’t able to capitalize on the rally – the market capitalization continues to hover around $5 billion.
NEM was receiving the majority of its trading volume from Japanese markets, mainly from the Coincheck cryptocurrency exchange, which has since closed since the significant theft of $530 million of NEM coins.
Is it a Buying Opportunity?
Analysts believe NEM price is undervalued following the considerable selloff and lower than expected growth in the past week.
Lower coin supplies compared to other digital currencies is among the catalyst for potential recovery. Almost 9 billion of NEM coins are under circulation at present; this represents 23% Ripple (XRP) coin circulation.
The prospects for its inclusion into Binance, the largest cryptocurrency exchange, could also add to NEM’s price. Previously, several cryptocurrencies had generated massive growth in price after their addition on Binance exchange.
Featured Image: disruptordaily.com