Yesterday we saw that HIVE coin made a strong pump with the price rising around 40% and staying at that level for quite some time. However the price started to drop again. As I mentioned in yesterday’s post if the volume had gone above 35 million it could have been a true pump and potentially led to a bullish trend reversal.
But since the volume didn’t reach that level and due to continuous fake pumping the price had to cool down. At the time of writing HIVE’s price has come back down to around 0.067 which is almost 33% down from its peak.
At this point many HIVE users likely took advantage by selling while others converted their HIVE into HBD. Now the question is why are users converting HIVE into HBD?
The main reason is its staking APR. Currently according to the witnesses decision the APR is set at 12%. This is still much better and more profitable than traditional banks. If you keep your HBD in savings you earn around 12% annually which is quite impressive.
As you can see from the witness page I showed the average APR among the top 14 witnesses for HBD is around 12% which is why the current rate is set at this level. So if you stake your HBD you continue to earn profits at this 12% APR.
On the other hand if you keep HIVE you can earn around 12–14% APR but only if you are actively curating properly. If you simply hold HIVE without curation you will only earn about 4% APR on staking. However if you use it effectively your profit can reach 12–14%.
In my opinion the APR returns for HIVE and HBD are now almost equal with no major difference. Whether users stay in HIVE or HBD both seem relatively safe. I think this was a great decision by the witnesses to reduce HBD APR from 20% to 12% so that users don’t abandon HIVE entirely.
Previously users preferred HBD because of the 20% APR but now that the rate is lower people are less interested in HBD and prefer staying in HIVE.
One major advantage of staying in HIVE is the potential for capital gains along with trading opportunities due to its volatility. HIVE’s price can pump 40–50% at any time giving a great opportunity for profit taking.
Another thing I have noticed in the HIVE ecosystem is that whenever HIVE’s price increases other tokens like COLONY, ZING, HELIOS and others also rise in value. Their staking APRs increase as well.
This is another positive aspect if you want to invest some amount in #Hive-Engine tokens. Just keep in mind that after every pump these tokens also tend to get a boost.
What do you people think, is it better to stay in HIVE or move into HBD at this point? Share your thoughts. Will be glad to see your answers in the comment section.
I hope you find this post useful and informative.. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also remember to upvote which will help me financially and grow my account.
IMAGE TAKEN FROM HIVE-ENGINE PEAKD CANVA
Thank You!
Best Wishes.