Should you stay away from this coin that rallied by 326%
The last couple of days have been surprisingly strong for altcoins like Audius and Solana (209%). Even though prime coins have been performing well, the attention is now shifting from Bitcoin and Ethereum. The question is, whether or not such coins are the right choice from an investment perspective. And the fact is that Audius’ future is not what you expect it to be…
Audius and its 326% hike
Audius is a crypto powered music streaming service that launched its token AUDIO back in October 2020. Since its listing, the coin has boomed in terms of price and value, trading at $3.5 at press time.
Over the months it rose by almost 1,705% with a single-day high of 70% yesterday and a 28% rally at the moment. And in the most recent rally, the coin went up by 326%, from $0.8.
A huge contributor to this rally is the recent news that made it popular beyond the crypto markets alone. Audius yesterday announced its 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 TikTok, in July, banned every crypto promotional content on the platform.
But beyond all news, what is the network’s actual value?
Is it worthy investing in?
That’s an answer you’ll find in the below-mentioned on-chain data. This coin is surprisingly not just another altcoin that bounced because of market movement. It does have value, much higher than the likes of DOGEcoin that have been pumping due to its influencers.
AUDIO has a strong development activity that has picked up pace since the beginning of June. On an average it has about 8 developers contributing when DOGE only had 2.
Not only this, but it also has a strong correlation with Bitcoin, at 0.89, higher than Cardano’s. And adding to this is the average balance that an address holds, which stands at $110,798. The reason for this, is the network’s low address count which is a mere 16.2k, but high volumes of $825 million in the last 24 hours.
In fact, AUDIO is primarily a whale token. This means that the entire circulating supply is dominated by whales, with over 91% of it sitting in their wallets.
Such domination makes the coin susceptible to whale dumplings. Combine that with AUDIO’s volatility at the moment rising to 300%, the price can fall at any time, without any warning. It’s simple math – if it can rise 70% in a day, it can also fall to the same extent, if not more.
Audius’ volatility | Source: Intotheblock – AMBCrypto
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