The Great Wall of GREEN STEEM - Are we close to the bottom? Will Parity be found and held at the (Not-So-But-Kinda-Broken) Peg?

in #steem6 years ago (edited)

I took a quick peak at the internal market on steemit.com a few minutes ago, and saw something quite interesting (to me at least)... A Great Wall Of GREEN STEEM! Check it out!

Internal Market.PNG

That is a 14500 STEEM buy order wall, which will give STEEM a lot of support to stay at or above the 1SBD = 1 STEEM mark, or parity. Coincidentally, SBD is heading slowly back down to the 1 USD price mark, at which the Peg is designed to hold it. It has taken a long time, but it is getting there.

Bittrex is showing similar sentiment. Here is the SBD order chart from a short while ago:

Bittrex_SBD.PNG

And here is the STEEM order chart.

Bittrex_steem.PNG

There is not much happening at all with SBD, which is stuck just above $1 USD, currently at $1.05, and like quite comfortable where it is. Steem has some movement, and could go either way, but to me is still looking down towards $1, where it will find its bottom. Anything bellow will probably trigger some big buy orders which will keep it up there.

The peg is still a thing.


There is still the option of the conversion from SBD to STEEM over the 3 day period, which helps to keep SBD at the 1 USD price. It is just not visible in many of the interfaces we use. If SBD drops below $1 for any period of time, we may see that conversion option reappear in our wallets, or those in the know will be converting in the background, directly on the blockchain (if I find out how, I'll most likely be considering doing it too). If SBD drops below $1 for any length of time we may see some accounts begin to power down to take advantage of some profitable conversion.

With that in mind, if the peg comes back into force, with conversions re-enabled, and with a strong support level for STEEM ad 1SBD/STEEM, it kinda means that STEEM will likely find its floor at 1USD.

  • Does this mean that the true value of STEEM is also only $1 because of this?
  • What makes STEEM so special that it would, or should be worth more?
  • What can STEEM do that SBD can't, other than be powered up and locked away for greater influence and voting strength inside the STEEM blockchain?


With the SBD print rate sitting at just 7%, we are getting more liquid STEEM, and so may be more inclined to use it for transactional purposes, OR sell it for SBD because we know SBD will at least stay above or at the 1 USD mark, and we can use SBD for all our transactional requirements anyway? SBD is the safety net or store of value, and also the elastic band which keeps STEEM bouncing back towards parity.

I have no doubt we will STEEM go up again some time when the crypto market bounces back, but I don't know if, under the current way the conversion/peg process works, and the lack of liquid STEEM when the price does go up, we will see a STEEM able to sustain a higher price than SBD for any long-term period before being brought back down with SBD to the 1USD mark.

Now that we are back to almost 1SBD=1USD, will we see any changes to the economics of the platform, in terms of bi-directional conversion, a more robust SBD peg, or some other wizardry? Or will be heading into another price cycle which will eventually lead us back to the same place we are now? There was a lot of talk a few months ago, but will we see any resulting action? I'm not holding my breath.





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