- Constellation price surprised everyone and outperformed most altcoins this week.
- Here’s why the token hit a new high.
Constellation (DAG) price surprised everyone by outperforming most altcoins this week. While the market is struggling, DAG hit a new high on July 10.
Constellation (DAG) is a protocol that uses a directed acyclic graph structure to accomplish a consensus that is probably capable of infinite scaling.
According to CoinMarketCap, the price of DAG surged 35.50% in the last 24 hours. It rose from a low of $0.1398 on July 10 to a new record high at $0.2291 on July 10. And it is trading at $0.189721 at the time of writing.
Here are the reasons why crypto hit a new record high. This includes the release of a functioning DEX, an expanding list of global partners who use the Constellation network to manage data, and the network’s strength to offer low-cost, highly scalable transactions, to name a few.
Lattice Exchange (LTX) is an automated market maker-based DEX that uses Constellation’s Hypergraph network to give a “near-zero fee and horizontally scalable decentralized network.”
So, in the past few months, the project added yield farming for the LTX token. This also lets DAG holders participate in the network by staking tokens on a state channel to help improve the network’s transaction per second (TPS) capability. Or by using DAG tokens to run a node on Constellation’s Hypergraph Protocol to confirm data. And also transactions and get rewards in DAG.
Another reason is Constellation’s growing list of ecosystem partners. On this list, there is Amazon Web Services, the United States Airforce, and more.
The matters about the consensus mechanisms of Bitcoin and Ethereum also played a part in the sideways price action. This opened the door for other competing projects to win attention.
Recently, traders and blockchain projects were having a hard time with high gas fees on the Ethereum network. Therefore, any project that gives secure, low fee transactions with a competitive TPS has the chance to thrive.
Moreover, if the upcoming London hard fork on Ethereum doesn’t upgrade leads to a significant reduction in fees, a growing demand niche could bode well for DAG price in the future.