With the calls for a hack having subdued before the end of Q1, NEM (XEM) has seen its price soar past the $0.4 barrier for the first time since March. The coin fell below $0.25 barrier for the first time since the infamous hack on Coincheck. Hackers were able to run off with over $500 million worth of XEM from the exchange. Coincheck has repaid amounts totalling to $430 million to the XEM holders at the time of hacking. The coin has since seen massive appreciation in price with the latest milestone placing the coin 14th on the top 100 largest coins list and on its way up to hit $1 again.
We look at the 2 possible factors that may well push the coin towards the dollar mark in this quarter.
The Catapult project
NEM (XEM) is currently rivaling Ethereum to be the best smart contract platform. The former NXT fork is planning to release the update version of Minjin, the platform on which NEM blockchain is based. The Catapult (Minjin v2) is a powerful platform that is set to change how we use smart contracts in the present systems. The platform will focus on providing the user with faster aggregated transactions, multilevel multi-sig accounts and a layered architecture that will improve efficiency throughout the network.
The Catapult is set to provide the user with various benefits as the release is scheduled for a later date in Q2 2018. Some of the developments on the Minjin v2 include:
- High scalability in a design that is based on an industry’s tiered web architecture. This will offer enterprises and users of the NEM blockchain a holistic solution to their problems. An advent feature in blockchain technology.
- Introduction of a high performance and highly scalable API gateway server layer with an open integration architecture
- High throughput message queues for real-time analysis and big data analytics of transactions
- Interoperability – allow external decentralized or centralized applications or smart contract solutions to transact using the blockchain. Embedded escrow service for exchange of assets on the blockchain – a special transaction contract.
- High transaction rates with test speeds reaching over 3000 transactions per second.
The Singapore effect
The Singapore based coin was able to tap into the widespread cryptocurrency frenzy in South Asia and set a foothold on the cryptocurrency market. Before the hack, NEM showed vast influence towards the crypto market as investors flocked to trade XEM. The strategic location the company is based gives it freedom to operate freely albeit some restrictions. The government of Singapore is very receptive towards the technological disruption that is taking place through blockchain platforms. This offers an advantage to NEM to build long term plans without fear of regulation or restraint.
The recent partnership with ProximaX to introduce decentralized crowdfunding to companies and enterprises served as a kickback to a coin that was ranked the worst performing in the top 100 coins on Coinmarketcap.
NEM (XEM) has a total market capitalization of $3.3 billion USD as at time of writing with a total of 9 billion XEM tokens currently in circulation. The coin has seen its daily trading volumes surpass the $50 million mark consistently during the past week, a feat that was previously achieved in January during the massive Bull Run. Is this a sign to higher value on XEM in the near future?