The last few days have been surprisingly strong for altcoins like Audius and Solana (209%). Although Prime Coins have done well, attention is now shifting from Bitcoin and Ethereum. The question is whether such coins are the right choice from an investment perspective. And the fact is, the future of Audius is not what you expect …
Audius and its 326% hike
Audius is a crypto-powered music streaming service that launched its AUDIO token back in October 2020. Since its listing, the coin has been booming in terms of price and value, trading at $ 3.5 at press time.
Over the months it rose nearly 1,705% with a daily high of 70% yesterday and a rally of 28% right now. And on the most recent rally, the coin rose 326% from $ 0.8.
A big contributor to this rally is the recent news that has made it known beyond the crypto markets alone. Audius yesterday announced his collaboration with the popular video app TikTok, which allows users to share audio tracks from Audius directly to TikTok. This news comes despite the fact that in July TikTok banned all crypto advertising content on the platform.
But what is the real value of the network beyond all news?
Is it worth investing?
That’s an answer that you can find in the on-chain data mentioned below. This coin, surprisingly, isn’t just another altcoin that bounced off due to market movements. It has a value much higher than that of DOGEcoin which has been pumped because of its influencers.
AUDIO has a strong development activity that has picked up speed since the beginning of June. On average there are around 8 developers who only had 2 at DOGE.
In addition, it has a strong correlation with Bitcoin at 0.89, which is higher than Cardano’s. Add to this the average credit balance for an address of $ 110,798. The reason for this is the small number of addresses on the network, which is only 16.2k, but high numbers from $ 825 million in the last 24 hours.
In fact, AUDIO is primarily a whale token. This means that all of the circulating supply is dominated by whales, over 91% of which are in their wallets.
Such dominance makes the coin vulnerable to whale dumplings. In combination with the current volatility of AUDIO to 300%, the price can drop at any time without warning. It’s simple math – if it can go up 70% in a day, it can go down as much, if not more.
Audius volatility | Source: Intotheblock – AMBCrypto