The strong Steem price increase is due to 5 factors that I will try to develop in this post, most of them are positive even if I am worried concerning one in particular.
I have been on Steemit since a little bit more than 4 months and the price increase that we have witnessed recently is incredible!
1. Google Trends show massive traffic to Steemit!
What are Google Trends?
Google Trend is an Indice based on 100, which means that 100 represents the week when most people searched for "Coinbase, Bittrex, Kraken..." on Google.
2. Steemit.com Analytics have never been this strong!
Ned tweeted from his phone the current metrics on a 1 month rolling basis.
From Nov, 20 to Dec 19, there has been 6.4 million Users (up 75% month on month)
3. SBD price at $14+
From a financial perspective, I like it VERY MUCH but its has been manipulated...
This could have been manipulated by whales? Traders? Steem development team? We do not know but this is a weakness fo the Steem Ecosystem as the SBD market is lower than $40mn (before it was exploited).
This price increase made Steem price also go up as it is currently an easy way to make profit as the platform did not adjust the SBD given.
I would be very careful from now on as I am quite sure Ned and his team are thinking on how to counter this "anomaly".
4. Steem Price > $4
As you read before I think this is mainly due to the SBD price and the good traffic metrics for the month of December.
5. Ned's Tweet
Conclusion
SBD price went up => Steemians have been making strong profit since then => It triggered interest from investors / Bloggers => High Traffic on Steemit.com and other platforms => Steem Price followed
(You can change the order of these events as they are all kind of directly related).
What are you doing to make Steemit and Steem grow?
Personally, I just managed to convince 3 people to join in the past week, I hope all of you are doing your part to make this community grow.
Sources:
Google, CoinmarketCap, Twitter
