Steem (STEEM) crypto surges 60%, volume explodes. What is driving this rally?

Highlights

• According to CoinMarketCap, the last 24 hours' trading volume in STEEM crypto was US$1.13 billion, up by 6,317%.

• This volume is 4.78 times STEEM crypto’s current market capitalisation of US$237 million.

• Steemit is Steem's prime social media platform based on the Steem blockchain.

Steem (STEEM) crypto, a community-focused blockchain, which is the underlying chain for social media platform Steemit, saw a massive jump on Friday (22 April). At the time of drafting this article, STEEM was trading at US$0.5976 per token, 53% higher compared to its price at the same time Thursday. Trading volume in this token has exploded. According to CoinMarketCap, the last 24 hours' trading volume in the token was US$1.13 billion, up by 6,317%. This volume is 4.78 times its current market capitalisation of US$237 million. So, what is behind this huge volume surge in STEEM crypto?

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The sudden jump in STEEM can be attributed to the announcement made by the Binance exchange that it was adding STEEM/USDT and seven other trading pairs on its platform at 10:00 (UTC) today. Listing on Binance holds significance for any altcoin as it is one of the biggest crypto exchanges in the world with a customer base of nearly 29 million.

How high can STEEM go?
Despite today's rally, STEEM is 93% away from its all-time high of US$8.57 seen on 3 January 2018. In the last 24 hours, this crypto has made a high of US$0.6224, according to CoinMarketcap. With today's jump in price, STEEM crypto has broken out of its resisting trendline and has led technical analysts to predict this crypto might touch levels of US$72- US$75 soon. However, one needs to understand that this crypto is extremely overbought now as its Relative Strength Index (RSI) is above the 80 mark. For the uninitiated, RSI is a momentum indicator that evaluates overbought or oversold conditions. An RSI reading above 70 for a stock/crypto indicates it is in the overbought zone and may correct soon.

What is Steem?
Steem combines social media and cryptocurrency to create a new type of platform where anybody may produce, distribute or upvote/downvote content. Based on their performance/posts on the Steem network, users can earn cryptocurrency tokens.

Steemit is Steem's prime social media platform based on the Steem blockchain. It functions in a similar way to other popular content-driven social media platforms such as Reddit and Medium. But the only difference is that it pays users with cryptocurrency for their participation.

How it works
On the Steemit platform, the money that a user will get for their post will depend on the value that the content delivers to the community. This is decided through voting by users, leading to the creation of content hierarchy. The more upvotes a particular post receives, the more tokens it earns. The Steemit platform also supports downvotes, allowing users more options when it comes to voting. Worth mentioning here is that users with more currency can vote with more clout. Other than STEEM, the ecosystem of Steemit comprises two other digital tokens -- Steem Power (SP) and STEEM Dollar.

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STEEM Tokenomics
STEEM is the primary token of the protocol and unlike other blockchains where coins are created through mining, Steem distributes the majority of its coin--STEEM--to the reward pool. The pool then distributes the token to users based on their participation. New blocks are added to the Steem Blockchain every three seconds by witnesses or block-creating accounts. At present, 395 million STEEM tokens are in circulation.

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