Home Altcoin 3 reasons why Constellation (DAG) price outperformed most altcoins this week

3 reasons why Constellation (DAG) price outperformed most altcoins this week

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The issues voiced in regards to the consensus mechanisms of Bitcoin (BTC) and Ethereum (ETH) have performed an element within the sideways value motion each belongings have seen over the previous two months, opening the door for different competing initiatives to achieve consideration. 

One undertaking that managed to beat the sideways motion out there and rally to a brand new report excessive on July 10 is Constellation (DAG), a protocol that makes use of a directed acyclic graph structure to realize a consensus that’s theoretically able to infinite scaling.

Information from Cointelegraph Markets Pro and TradingView reveals that the worth of DAG rallied 353% from a low of $0.037 on June 22 to a brand new report excessive at $0.17 on July 10.

DAG/USDT 4-hour chart. Supply: TradingView

Three causes for the sturdy exhibiting from DAG embody the discharge of a functioning decentralized alternate, an increasing listing of world companions who make the most of the Constellation community to handle knowledge and the community’s capacity to supply low-cost, extremely scalable transactions.

DeFi launch brings yield to stakers

The just lately launched Lattice Change (LTX) is an automatic market maker-based decentralized alternate (DEX) that makes use of Constellation’s Hypergraph community to supply a “near-zero payment and horizontally scalable decentralized community.”

Within the path few months, the undertaking has added yield farming for LTX token through liquidity provision on Uniswap or staking the token immediately on the Lattice Change for a calculated APY of 155%.

DAG holders may take part within the community by staking tokens on a state channel to assist enhance the community’s transaction per second (TPS) functionality, or by utilizing DAG tokens to run a node on Constellation’s Hypergraph Protocol to be able to validate knowledge and transactions and obtain rewards paid in DAG.

Partnerships spotlight Constellation’s real-world software

Constellation’s rising listing of ecosystem companions is one other signal of the undertaking’s sturdy fundamentals.  

Constellation ecosystem companions. Supply: Constellation Network

Notable enterprise partnerships embody Amazon Internet Companies and the United States Airforce and the undertaking has additionally established sector-related partnerships with Chainlink (LINK) and KuCoin alternate.

The introduced partnership with Liechtenstein Cryptoassets Change (LCX) was additionally a major growth for the Constellation ecosystem because the alternate agreed to assist the itemizing of DAG together with future tokens created utilizing the Constellation Community’s L_0 Token Commonplace.

Sooner transactions, decrease prices

Not too long ago, Bitcoin and Ethereum have fallen beneath elevated scrutiny for his or her environmental prices and excessive transaction charges. This led buyers and builders to shift their consideration to initiatives like Solana and layer-2 options which supply sooner transaction speeds.

Just some months in the past, merchants and blockchain initiatives had been crippled by excessive fuel charges on the Ethereum community, and because of this any undertaking that gives safe, low payment transactions with a aggressive TPS has the chance to thrive.

The brand new ‘Stargazer’ pockets interfaces with Lattice and it helps zero-fee person-to-person transactions on the community.

DeFi platform comparability. Supply: Twitter

Because the cryptocurrency neighborhood prepares for the upcoming London onerous fork on Ethereum, the destiny of competing layer-one and layer-two options stays up within the air as customers wait to see if the improve results in a major discount in charges. If the state of affairs doesn’t noticeably enhance, strengthening fundamentals and the opportunity of filling a rising demand area of interest might bode effectively for DAG value sooner or later.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it’s best to conduct your individual analysis when making a call.