3 reasons why Constellation (DAG) price outperformed most altcoins this week

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The considerations voiced in regards to the consensus mechanisms of Bitcoin (BTC) and Ethereum (ETH) have performed a component within the sideways worth motion each belongings have seen over the previous two months, opening the door for different competing tasks to achieve consideration. 

One venture that managed to beat the sideways motion available in the market and rally to a brand new document excessive on July 10 is Constellation (DAG), a protocol that makes use of a directed acyclic graph structure to realize a consensus that’s theoretically able to infinite scaling.

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Knowledge from Cointelegraph Markets Pro and TradingView reveals that the value of DAG rallied 353% from a low of $0.037 on June 22 to a brand new document excessive at $0.17 on July 10.

DAG/USDT 4-hour chart. Supply: TradingView

Three causes for the robust displaying from DAG embrace the discharge of a functioning decentralized change, an increasing record of world companions who make the most of the Constellation community to handle knowledge and the community’s means to supply low-cost, extremely scalable transactions.

DeFi launch brings yield to stakers

The lately launched Lattice Change (LTX) is an automatic market maker-based decentralized change (DEX) that makes use of Constellation’s Hypergraph community to supply a “near-zero charge and horizontally scalable decentralized community.”

Within the path few months, the venture has added yield farming for LTX token by way of liquidity provision on Uniswap or staking the token instantly on the Lattice Change for a calculated APY of 155%.

DAG holders also can take part within the community by staking tokens on a state channel to assist improve the community’s transaction per second (TPS) functionality, or by utilizing DAG tokens to run a node on Constellation’s Hypergraph Protocol as a way to validate knowledge and transactions and obtain rewards paid in DAG.

Partnerships spotlight Constellation’s real-world software

Constellation’s rising record of ecosystem companions is one other signal of the venture’s robust fundamentals.  

Constellation ecosystem companions. Supply: Constellation Network

Notable enterprise partnerships embrace Amazon Net Providers and the United States Airforce and the venture has additionally established sector-related partnerships with Chainlink (LINK) and KuCoin change.

The introduced partnership with Liechtenstein Cryptoassets Change (LCX) was additionally a major growth for the Constellation ecosystem because the change agreed to assist the itemizing of DAG together with future tokens created utilizing the Constellation Community’s L_0 Token Normal.

Quicker transactions, decrease prices

Not too long ago, Bitcoin and Ethereum have fallen underneath elevated scrutiny for his or her environmental prices and excessive transaction charges. This led buyers and builders to shift their consideration to tasks like Solana and layer-2 options which supply sooner transaction speeds.

Just some months in the past, merchants and blockchain tasks have been crippled by excessive gasoline charges on the Ethereum community, and because of this any venture that gives safe, low charge transactions with a aggressive TPS has the chance to thrive.

The brand new ‘Stargazer’ pockets interfaces with Lattice and it helps zero-fee person-to-person transactions on the community.

DeFi platform comparability. Supply: Twitter

Because the cryptocurrency group prepares for the upcoming London laborious fork on Ethereum, the destiny of competing layer-one and layer-two options stays up within the air as customers wait to see if the improve results in a major discount in charges. If the scenario doesn’t noticeably enhance, strengthening fundamentals and the opportunity of filling a rising demand area of interest might bode properly for DAG worth sooner or later.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you must conduct your individual analysis when making a call.