Constellation (DAG) price prediction: Can DAG token hit $1b marketcap this week – Constellation (DAG) token have enjoyed an amazing rally in the past 30days thanks to partnerships, a pivot toward DeFi, new wallet release and low transaction costs back DAG’s rapid rally to a new all-time high.
What is Constellation (DAG)?
In more traditional blockchains, the host provides the food/drinks (i.e resources) for this party. And when the guests arrive, the amount of resources can only accommodate so many people, the portions are small and then everything eventually runs out and the party ends. Think Constellation DAG like a potluck (a party where everyone brings food/drinks). With every added guest (node to the network), the more resources the party has to keep going. This is the nature of Constellation, a distributed system that scales horizontally.
The concerns voiced about the consensus mechanisms of Bitcoin (BTC) and Ethereum (ETH) have played a part in the sideways price action both assets have seen over the past two months, opening the door for other competing projects to gain attention.
One project that managed to overcome the sideways action in the market and rally to a new record high on July 10 is Constellation (DAG), a protocol that utilizes a directed acyclic graph architecture to achieve a consensus that is theoretically capable of infinite scaling.
Data from Coingecko and TradingView shows that the price of DAG rallied 353% from a low of $0.037 on June 22 to a new record high at $0.17 on July 10.
Current marketcap of DAG token
As at the time of writing this report the marketcap of DAG stands at $453million up from $240million last week representing a 92.5% gain.
Three reasons for the double gain in marketcap of DAG token include the release of a functioning decentralized exchange, an expanding list of global partners who utilize the Constellation network to manage data and the network’s ability to offer low-cost, highly scalable transactions.
DeFi launch brings yield to stakers
The recently launched Lattice Exchange (LTX) is an automated market maker-based decentralized exchange (DEX) that utilizes Constellation’s Hypergraph network to offer a “near-zero fee and horizontally scalable decentralized network.”
In the path few months, the project has added yield farming for LTX token via liquidity provision on Uniswap or staking the token directly on the Lattice Exchange for a calculated APY of 155%.
DAG holders can also participate in the network by staking tokens on a state channel to help increase the network’s transaction per second (TPS) capability, or by using DAG tokens to run a node on Constellation’s Hypergraph Protocol in order to validate data and transactions and receive rewards paid in DAG.
Partnerships highlight Constellation’s real-world application
Constellation’s growing list of ecosystem partners is another sign of the project’s strong fundamentals.
Notable business partnerships include Amazon Web Services and the United States Airforce and the project has also established sector-related partnerships with Chainlink (LINK) and KuCoin exchange.
The announced partnership with Liechtenstein Cryptoassets Exchange (LCX) was also a significant development for the Constellation ecosystem as the exchange agreed to support the listing of DAG along with future tokens created using the Constellation Network’s L_0 Token Standard.
Faster transactions, lower costs
Recently, Bitcoin and Ethereum have fallen under increased scrutiny for their environmental costs and high transaction fees. This led investors and developers to shift their attention to projects like Solana and layer-2 solutions which offer faster transaction speeds.
Just a few months ago, traders and blockchain projects were crippled by high gas fees on the Ethereum network, and this means that any project that offers secure, low fee transactions with a competitive TPS has the opportunity to thrive.
The new ‘Stargazer’ wallet interfaces with Lattice and it supports zero-fee person-to-person transactions on the network.
DeFi platform comparison. Source: Twitter
As the cryptocurrency community prepares for the upcoming London hard fork on Ethereum, the fate of competing layer-one and layer-two solutions remains up in the air as users wait to see if the upgrade leads to a significant reduction in fees. If the situation doesn’t noticeably improve, strengthening fundamentals and the possibility of filling a growing demand niche could bode well for DAG price in the future.
Can DAG token reach $1billion marketcap this week?
The question most traders have been asking ever since the rally began for DAG is if the marketcap can possibly reach $1billion this week? Well to put it more simply, for DAG to cross one billion dollar marketcap requires just 115% gain this week and considering the current rally of DAG it is achievable.
Although a little correction is expected in-between pumps which is normal, depending on your risk appetite you may want to wait for the correction or go in with a little capital then do a dollar cost average (DCA) depending on the direction price move.
Disclaimer
This article is for information purposes only and should not be taken as a financial advice, consult your financial advisers for professional financial advice.