Many factors, but I'd say the largest being the market size. Comparably it is a very small market and we are comparing it to well established markets. so it seems very volatile..
The below quote from a Coinbase article on Bitcoin applies to Steem as well I think:
Bitcoin’s value can be volatile when compared to more established currencies and commodities. This can be attributed to its relatively small market size, and it means that a smaller amount of money can move the Bitcoin price more significantly. This discrepancy will decrease naturally over time as the currency matures and the market size increases.
We are also having more news from Steemit.inc lately, hadforks and such,in a market of this size any news is going to move the market; one way or another..
Many factors, but I'd say the largest being the market size. Comparably it is a very small market and we are comparing it to well established markets. so it seems very volatile..
The below quote from a Coinbase article on Bitcoin applies to Steem as well I think:
Bitcoin’s value can be volatile when compared to more established currencies and commodities. This can be attributed to its relatively small market size, and it means that a smaller amount of money can move the Bitcoin price more significantly. This discrepancy will decrease naturally over time as the currency matures and the market size increases.We are also having more news from Steemit.inc lately, hadforks and such,in a market of this size any news is going to move the market; one way or another..