Skycoin is one of the many cryptocurrencies introduced in 2017. The crypto which is a custom-built hardware unit for the new internet is designed to work using efficient mining devices. Until December 1st, 2017, Skycoin crypto whose ticker symbol is SKY hardly passed the $100,000 mark as far as 24-hour volume goes. But just like Bitcoin and Ethereum, the crypto peaked in December to touch a high of $2.5 million. To the surprise of market players, this high was beaten on May 23rd when a new high of 24-hour traded SKY coins totaling to $7.3 million was hit.
Understanding Skycoin cryptocurrency
The Skycoin crypto was designed to help solve the problems which were facing Bitcoin. Bitcoin was meant to be decentralized over a large network of computers. It can be said that Bitcoin is no longer decentralized since three major mining pools control the crypto’s network. It is based on this problem that Skycoin was launched. The Skycoin’s consensus algorithm is built to achieve thorough decentralization of the blockchain. This is especially so because the algorithm is not PoW or PoS.
The Skycoin cryptocurrency is not mined like a majority of major cryptos. On the other hand, the crypto’s network allows the users to earn coins for powering the network. In the latter half of 2017, the company launched a downloadable network node which allows users to earn coins for powering the network.
Skywire is the company behind the SKY coin and they have worked at ensuring that privacy, anonymity and peer-to-peer decentralization goals are achieved. On the Skycoin blockchain, users get to enjoy free and infinite transactions. The whitepaper has more technical details on the Obelisk consensus algorithm and how the team aims to achieve its goals.
Will the volumes stay high?
Skycoin is ranked number three in the 24-hour traded volume category on coinmarketcap. Overall, it is ranked number 51. The crypto started the day, May 23rd, with a reasonable $1.5 million but after a few short hours, the volumes jumped to surpass $6 million. On Thursday, May 24th, the crypto’s volume surged even higher to start the day at $7.1 million only for a few hours later to reach $10 million.
The price jumped by more than 46% to $35.89 on Thursday after having touched a low of $23.6 on Wednesday. It remains to be seen whether the price will get anywhere near $48 which it commanded on January 3rd this year. Unlike Bitcoin whose market cap has dropped significantly in the month of May, SKY has climbed from a low of $142 million on May 2nd to reach $236 million in mid-May. The crypto shed some of its value but as of Thursday (1000 hours CET), the market cap was $318 million.
How does the future look for the crypto?
Skycoin is one of the few cryptocurrencies which shows some consistency in terms of price and the volumes traded. The market cap of the crypto has been rising steadily over the past few months. The crypto whose total supply is SKY 25 million will remain relevant especially because the team behind it has done away with mining of the coins. After reading the whitepaper, you will find that the team tackles the issue of blockchain technology and algorithm to a great length and doesn’t suggest that it’s a make-a-quick-buck project.