Reddcoin; Major Market Mover

Recently Reddcoin has been making some serious market gains, with a recent 24 hour volume of $578,183 and a price peak of 41 Satoshis. Over the last 3 months, Reddcoin has been steadily gaining in both price and volume. With prices historically being around 6 Satoshis, and a current market weighted average of 34 Satoshis, that’s a 566% increase. Volume has typically been around 300-500 million for a 24 Hour period, that has increased to 2.63 billion. That’s roughly a 640% increase.

PoSV is an innovative algorithm that encourages both ownership (Stake)and activity (Velocity). PoSV solves serious known issues in traditional PoS & PoW algorithms.

In USD terms this more than doubles Dogecoins $250K volume and dwarfs many of the top 10 coins.Perhaps the fact that it’s being traded on Cryptsy and Mintpal provide Reddcoin some major liquidity and volume. This may be responsible for growth occurring so freely and with such apparent stability. Reddcoin even surpassed Dogecoin in value. With a current ratio of 1 Reddcoin being equal to 1.3 Dogecoin according to the Market Converter. 

This brings us back to the main question you should be asking. What is fueling this movement, this push?

I believe it is a combination of features and timing. Firstly, the expected algorithm transition to PoSV on August 2nd. And secondly, the block halving that is coming with it. The combination of consistent block halving (reduced supply), new features (buy pressure) and the transition to PoSV (an incentive to hold, as you gain 5% interest) means there is less downward pressure from miners dumping coins, and more up ward pressure from investors that want to buy and hold.

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| PoW; Proof of Work | Proof of work is a system that works a lot like your real-world job. You work, and you get paid for fulfilling a certain task. Miners dedicate entire computers and mining machines to mining Coins. |
| PoS;  Proof of Stake | Users “mint” new coins by demonstrating ownership of their current coins. Stay connected to earn more coins |
| PoT;  Proof of Transaction | The easiest way to think about it is that PoT rewards your spending. You can earn coins by sending coins to others. |
| PoSV;Proof of Stake Velocity | PoSV encourages both ownership (PoS) and activity (V). PoSV incorporates network activity between addresses. Reddcoin currently pays 5% for wallets that remain open (PoS), and for spending coins (V) |

This is typical of coins transitioning to PoS, the sudden supply reduction usually precedes a price increase soon after. Take a look at Darkcoin, comfortably sitting at number 3 on the BNC index. Where was it before it cut the total supply to 22 million coins? On top of it being one of the first anonymous coins, transitioning to a new algorithm gave it some serious market movement, just like Reddcoin is getting right now.

Reddcoin, if you don’t already know, is a coin with the goal of becomimg the social currency. With a solid community, features, and a clean record, I find it quite easy to see why Reddcoin has broken the top 10 coins when it comes to the BNC index. It has had a fast adoption rate, social network integration, and a very successful IPO. The IPO allowed for excellent coin distribution.

Reddcoin could go either way; hype and excitement for upcoming features can only go so far. However, If they can deliver on their promises Reddcoins price and volume could be much higher than where it is currently.