RobiniaSwap(RBS) Price Analysis
Robiniaswap.com launched about a week ago and created a bridge between Steem and BSC networks. Earlier I wrote an article named An Important Milestone For Steem: Robiniaswap Launch about Robiniaswap, a DEX like Pancakeswap. Today, I would like to focus on the price of the platform's token, RBS.
Robiniaswap got off to a good start, reaching a locked total of $10 million in a short period. RBS, the platform's token, has experienced a serious loss in value in recent days. The most important reason for this is the rapid increase in the amount of Robinia tokens in the market. Users sell RBS tokens they earn from pools and farms, taking into account the downtrend of the RBS price. RBS tokens are offered to the public through a fair launch. In this method, the token supply starts high and runs at a decreasing rate over time. We are currently at a stage where 86,400 RBS is produced daily. As of tomorrow, the number of RBS produced per day will decrease to 57,600. And after 4 days that number will have decreased to 28,800 RBS. (Source: https://blokfield.gitbook.io/robinia/tokenomics/rbs-token)
The Bitcoin stock-to-flow model taught us how the supply of a cryptocurrency is decisive in price. As you know, the amount of Bitcoin produced halves every 4 years, and this causes the beginning of an upward trend in Bitcoin price. It is possible to examine the situation more closely in the chart below.
I believe a similar scenario will apply to the RBS price. At the time of writing this article, the RBS price is $0.58 and continues to decline. Robinia's total market value has dropped to $345,000 due to the rapid price drop. However, the total market value of Nutbox Pnut, which similarly bridges Steem and Tron is currently $ 3.7 million. (Source: Tronscan-Pnut
Another BSC DEX with a close LTV, Cubdefi has a market cap of $2.7 million. (Source: https://cubdefi.com/)These figures imply 5-10x potential in Robiniaswap's total market cap.
Robiniaswap will start offering Bid-Bot service soon. The company is still accumulating Steem for this purpose. Vote purchases using RBS will significantly increase the token burn, which is currently around 5000 RBS per day.
Fundamental analysis shows that RBS is currently attractive for investment. From a technical analysis perspective, it would be appropriate to wait for the downtrend to stop and an upward rally to begin. Such an approach is safer but may increase the cost of acquisition. You may also consider gradual buying.
Those who do not want to take the price risk of RBS can also earn RBS by paying a 3% commission and staking Steem or another cryptocurrency. On the platform, Steem's annual APR is currently reported as 200% right now.
What I wrote above is not investment advice. And, I'm not an investment expert. You better do your own research.
You can follow the developments on the subject via @robinia, the official Steemit account of the platform.
Thank you for reading.
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