Is Steem (STEEM) crypto feeling the heat of market free fall?

Highlights

• Steem (STEEM) crypto is a community-focused network that offers incentivised blockchain database, which allows users to interact and earn rewards in the process.
• Launched in January 2016, Steem crypto aims to eradicate the issues related to downtime or data abuse.
• The 264^-ranked token on Friday was trading at US$0.407550 with a trading volume of US$19,73,76,676 over a day, according to CoinMarketCap.

Steem (STEEM) crypto is a community-focused network that offers incentivised blockchain database, which allows users to interact and earn rewards in the process. By leveraging both social media and cryptocurrency, it can provide adequate value to users.

Launched in January 2016, Steem blockchain first launched an app known as Steemit. With its ability to eradicate the issues related to downtime or data abuse, Steem crypto has been rising on the popularity charts and works on the principle that users who contribute to a venture should be paid.

Also read: The US$100-bn flash crash: Why are cryptos crashing today?:

A month ago, Steem crypto seemed to be on a bull run after registering gains of over 7%. Last week, it had seen a decent rally of over 24% with significant volume gain. However, as we all know the crypto market can change anytime. In the past 24 hours, the token suffered a correction and was down by 1.59% on 6 May.

Why is Steem crypto trailing?

Although the exact reason for the downfall is not clear, it looks like the fall is due to the overall market sentiments prevailing on Friday. The overall crypto market suffered a jolt of over 7.46% reducing the overall market cap to US$1.67 trillion.

Having said that, the Steem crypto is still witnessing decent market interest with volume still managing to hold ground with a rally of 125%. To increase engagement, the Steem crypto opened up Steemit Engagement Challenge II, which will allow the users to earn Steem tokens as rewards. Last year, Steem had done a similar contest which concluded on 1 May.

Also read: Increasing number of UK citizens getting glued to cryptos: Coinbase report

With superior speed, the Steem protocol claims to complete a significantly higher number of transactions as compared to other blockchain networks, such as Bitcoin or Ethereum. One of the core beliefs of the Steem crypto is to ensure that the community members get voting rights and get a chance to take a call on the future governance of the protocol.

How is Steem crypto faring?

The 264^-ranked token on Friday was trading at US$0.407550 with a trading volume of US$19,73,76,676 over a day, according to CoinMarketCap. The Steem crypto was down by 1.81% in the last 24 hours. Though the market cap has slumped, the Steem crypto still has a live market cap of US$16,09,62,599.

Today’s flash crash indicates the volatility of all cryptocurrencies. The token, which seemed to be on a bull run, suddenly dropping showcases why one must be wary of the crypto markets and tread carefully in the domain.

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