Qtum (QTUM) is a smart contract blockchain platform that functions as a value transfer mechanism. It combines the best features of both Bitcoin and Ethereum.
Learning about Qtum
Qtum is based on the UTXO concept used by Bitcoin. The proof-of-stake consensus technique is used. It also includes Ethereum’s smart contract and decentralized application features. The platform also supports DeFi apps, and the Qtum blockchain allows for the creation of over 20 coins.
The account abstraction layer, which leads to the creation of enhanced smart contract capabilities, is one of Qtum’s significant innovations. Search engines, decentralized games, and social networks are some of the most popular Qtum applications.
Qtum outperforms Ethereum in terms of productivity and scalability by several orders of magnitude. As a result, it is the best option for many decentralized initiatives. The on-chain decentralized governance allows multiple stakeholders’ perspectives to combine, resulting in a common consensus on significant practical issues.
The current market price of QTUM is $4.15, and there are 104.2 million tokens in circulation. It has a total market capitalization of $432.5 million, making it the 96th most valuable cryptocurrency. It has a maximum supply of 107 million tokens, which means that only roughly 3% of the entire quantity can release during the next few years.
QTUM attained its all-time high price in early 2018, followed by a steep decrease in the following years. However, it has shown signs of resurgence in recent months. If the project continues to evolve with the addition of new features, its market performance may likewise exhibit positive dynamics. In order to achieve maximum user loyalty, new unique features beyond those used by Bitcoin and Ethereum must introduce.
Pros and Cons of Investment
Investing in Qtum carries a significant amount of risk. The reason for this is that the dApps market is becoming increasingly competitive. Furthermore, the project’s maximum funding reached more than 4 years ago, with strategic investor interest rapidly declining. Simultaneously, Qtum’s engineers prefer to offer some novel governance and functionality options that could appeal to a wide range of crypto enthusiasts.
Furthermore, the current price level makes purchasing tokens near to their local minimum attractive. As a result, in the vast majority of circumstances, using technical analysis can help you make better-supported investing decisions.
The current price of QTUM is close to the local low of $3.2 achieved a few weeks ago. Currently, QTUM’s price is gradually recovering, with the first major objective being $7.3, which is a big resistance level. This level could achieve within a month if the upward trend continues.
The second resistance level is at $9, but if the general crypto market dynamics stay unchanged, it will not reach in the foreseeable future. Overall, if QTUM investments made as part of a larger portfolio investing strategy, they may be sensible.