Ampleforth : A Potential Stablecoin Which Stabilizes its Own Value

Spread the love
  • Any fiat currency does not back AMPL; instead, it has incorporated an automatic rebasing system.
  • The top non-exchange addresses holding AMPL tokens seem to be accumulating the asset. This indicates some optimism in the investors’ confidence.

Recently, Santiments released a blog post on a potential stablecoin. This new category of asset called ‘Ampleforth (AMPL)’ is a stablecoin protocol based on the Ethereum platform.

AMPL Not Pegged by Any Fiat Currency

Unlike USD coin, AMPL not backed by any fiat currency; instead, it has incorporated a reflexive rebasing system. This system tries to balance the value of the asset to around a dollar. Every day at 7 PM Pacific Standard Time, AMPL users tend to see a change in the assets either up or down, as the system attempts to stabilize the price of the token.

Changes in the holdings happen in this manner: if the price of AMPL is above $1, the supply expands, and similarly, if AMPL is above $1, the token supply lessens. AMPL is bound to trade in the vicinity of $1. However, Ampleforth doesn’t like to be termed as stablecoin.

Positive Aspects That Indicate Growth of Stablecoin

61c8de52ca6e92aaeffe8373961a2a4c76815d40caa9e3aab0a4377f35671efd_1596142088405_Screenshot 2020-07-30 at 23.47.50

The increase in social volumes is rare, considering the token’s ever-changing price performances. Furthermore, the top non-exchange addresses holding AMPL tokens seem to be accumulating the asset. This indicates some optimism in the investors’ confidence.

RECOMMENDED READ:  Basic Attention Token, Litecoin, VeChain Price Movement Analysis for 14th March, 2021

b964000c28ca962485bd9cdac2763f4166f603afae227174ad9decc25dcb5de0_1596143745561_Screenshot 2020-07-31 at 00.14.45

According to the data provided by Santiments, the top four addresses holding AMPL are dumping. And the fifth address is a smart contract, and the sixth address is a whale, which has approximately 3.5% of total AMPL supply stored.

7d622bab60b5bd1bc98fe3f84b45881a86078934fccd1382e59e8b6e76009a99_1596144190444_Screenshot 2020-07-31 at 00.23.04

The Daily Active Addresses are considerably increasing, hinting towards a strong engagement with the network. The high transaction volumes recorded during the dump indicate extreme activity among the investors.

AMPL Capital Plummets By 60% in The Last Few Days

But, the AMPL market capital has plummeted down by 60% in the last few days. The market capital fell from $719 million on Monday to $216 million on Thursday. It has slightly recovered to $316 million. The main reason for this may be the elasticity of its price. As its supply tends to change, it affects the market capital. Currently, it is trading at $0.871503 and is up by 18.3% in the last 24 hours. Consequently, the supply of the token has deflated. However, these swings are not a surprise considering the reflexive model of this stablecoin.

Some crypto experts see the token as more of a risky asset. This is because investors can lose both the value of the tokens as well as the token itself owing to the design of the protocol. Ampleforth is supported by Investment firms like Pantera Capital, Arrington XRP Capital, and Slow Ventures.

RECOMMENDED READ:  DeFi could be coming to Cardano

[crypto-donation-box type=”tabular”]

 4,466 Interactions,  4 today

READ ALSO:
Why is XRP seeing such a massive rally because Ripple is only worth $3 billion on the secondary market?

Ripple is currently valued at $2 to $3 billion, but its XRP assets are worth around $70 billion. The equity Read more

Reddit reminisces about the now-defunct ‘Bitcoin faucet’ website that gave away 19,700 BTC for free.

It might seem unbelievable today, but in 2010, software developer Gavin Andresen set out on a quest to distribute free Read more

The price of Solana (SOL) is rising as airdrops draw new subscribers to the network.

This month, the price of Solana has increased by more than 50% as new ventures perform airdrops on the SOL Read more

Filecoin, IOTA, Enjin coin Price Movement Analysis for 11th April, 2021

The altcoin industry has been adjusting to the Bitcoin market's boom, and the valuation of most cryptocurrencies has risen in Read more

Stellar Lumens, Aave, Cosmos Price Movement Analysis for 11th April, 2021

Stellar Lumens moved within a bull flag pattern, but the pattern may be reversed if $0.58 -help is not sustained. Read more

Cardano, Bitcoin SV, Compound Price Movement Analysis for 11th April, 2021

Cardano observed a pattern of declining exchange rate, indicating that the market was likely in a delivery process. However, in Read more

Why retail Bitcoin traders should foresee a price increase

Big Bitcoin wallet inflows indicate a bullish pattern turnaround in the coming week. The price is currently about $60000; but, Read more

Where are ADA, ETH,  DOT, and UNI price movements heading?

Based on price action in March and the first ten days of April, a pattern has appeared on the price Read more

Why this researcher believes the ‘hyperbitcoinization’ is not far from reality

Despite minor corrections over the last week, the Bitcoin price has been rallying higher, with the king coin once again Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Crypto.com Coin, Hedera Hashgraph,Monero Price Movement Analysis for 11th April, 2021

Crypto.com Coin was under selling pressure at $0.23, but it still had help in the $0.19-$0.2 range. Hedera Hashgraph would Read more

Leave a Reply

Contact Us