Why is Steem's Trading Volume so Low?
When I get up in the morning, the first thing I do is check the daily cryptocurrency charts on Coinmarketcap. The past couple of weeks, I haven't been too happy when I scroll down to see how Steem is doing.
If I compare Steem's trading volume to other, way less functional forms of cryptocurrency, it saddens me to see that Steem only hovers around 600k USD daily trading volume.
What's up with that? We're with thousands of people who use this platform daily, yet we can't even break 1 million US Dollars of volume per day. This post isn't meant as a complaint, more of a call to ask people about possible reasons for this.
Steem Advertises Itself?
With the amount of content published on Steemit.com, this cryptocurrency should just advertise itself without any problems. Which other cryptocurrency could generate such huge amounts of organic traffic, just by existing?
This is something that does bother me a bit, people should be so excited that a platform like this exists. With the recent issues for publishers on other social media networks, it would seem like a no-brainer to at least try out Steemit. Yet, we do not see the huge rush that we're all hoping for.
I'm coming late to this, as I've been away for a few days.
Even with Steem as low as it is now, by investing just a few hundred dollars in Steem, even if you never post or curate, you can earn more passive income than you would with most bank accounts. So I think the reason for the trading doldrums is due to the "ignorance of the masses". Sorry if that seems patronising, but I think it's true - where finances are concerned. Most people don't invest in anything until they see it start to boom, by which time the big gains have already been made. Few people try to learn anything about a company or crypto before they invest in it.
I invested in Ethereum in the crowdsale (unfortunately I sold out too early!). I just thought it sounded amazing, and I told all my friends and family, blogged, tweeted and Facebooked about it. But no one took the slightest bit of interest. When it suddenly exploded, a couple of people said to me, "Hey - have you heard about this Ethereum thing? I'm going to invest in it!"
Even today, people sometimes say to me, "What do you think of this Budcon thing?"
It's frustrating, but we are really really early adopters of Steem. In general, markets do not follow logic or rationality. There are no guarantees. But I think Steem's time will come.
Luckily this isn't a thing any more. Check out my newer article ;- )
Binance's Steem volume has been amazing these past couple of days.
Great news! This is what happens when I go away from the internet for a few days... :)
If people are just powering up and not actually purchasing Steem would it show up as trading volume? Rewards are pretty low right now compared to several months ago, so maybe people are just holding on to their SBD. The conversion rate is highly advantageous right now though, so I don't know why you wouldn't power up. It's also a great time to buy when you can pick up over 1 STEEM for less than a US dollar!
FOR TSE: I point to the serious lack of strong leadership, the lack of aggressive marketing and publicity of Steem, the continuing problems on the platform -- the ones we all complain about, the huge disparity in wealth between the majority (of virtually impoverished accounts) and the teeny-tiny minority (of whales -- most of whom pre-mined their stake) and the absence of a strong middle class (of dolphins) -- all resulting in a serious lack of morale on the platform and very tepid enthusiasm about it on the outside. (The HF20 crash for a solid week probably didn't do our reputation much good either.)
Steemit has fabulous potential -- it's a truly terrific idea. But seriously, why should anyone be excited about it in its present state? The 8% retention rate tells a terrible story, and no one seems to be doing one single thing to address that.
That is a very valid question I don't know enough about the markets, but am surprised Steem is trading so low
Wouldn't most steem be tied up by being powered up on steemit? That significantly reduces the market cap available for trading...
I'm wondering if most people use blocktrades to directly convert to other crypto?
Good point, but doesn't Blocktrades get it through the Bittrex api?
Ah, I didn't know that!
Although, you have got me thinking... why would people in general buy Steem? Apart from the hopeful investor, is it really something that people would buy, to increase their stake in the allocation of the reward pool?
I'm talking about ordinary people, not Steem die-hards!
it all comes down to money. when i still see people who circle jerk votes for what i consider shit content and make 5-10x as much as i do per post, it doesn't make me want to invest in the platform. when i hear that we have reached the bottom after constantly going down, i begin to question the value of investing. as long as we allow the abusers to abuse, there is no rationale for throwing more money to them.
We have to keep fighting and having a hope to a better price of steem. Keep steem on.
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