I always try to deemphasize the importance of current prices in the crypto space. Yet we are sometimes faced with interesting visualizations of how things could potentially be when we experience a rebound. My focus would of course be on Hive and tokens around the Hive chain, but this may very well apply to just about any meaningful project.
We're still considered as being in bear times meaning that most projects are severely undervalued. Coins tend to follow the trajectory of Bitcoin which remains the undisputed leader and godfather of the crypto industry. There are times when a few alts will experience independent spikes depending on certain factors, and rarely (but possible) will an alt cause the entire market to spike.
The rise of Bitcoin will inevitably lead to the rise of Hive in value. This isn't even the Value driven spike most of us on the chain talk about, but rather a bonus rally from the entire market. Depending on how much Bitcoin moves, we tend to move in moderate proportion. Bitcoin generally has a way of attracting institutional interest before people start to look at other viable projects and tokens, leading to an alt rally.
Should Hive spike as a result of Bitcoin, it is inevitable that most second layer tokens will follow, just as a result of more money being available in the markets. Again the proportions are to be determined, but we can estimate that the really valuable projects will experience a bigger spike than a lot of the others. For me, as far as second layer projects are concerned, the most important are leofinance, splinterlands and sports talk, and these are the communities I am active in.
Getting to the Good Part
Now the beauty about a potential surge in Bitcoin is that it isn't just left to the imagination. There are quite a number of factors today that could cause a surge both internally within the crypto space, and externally. An economic recovery for instance will inevitably spark more interest in crypto so there are many channels where we could potentially get a break.
Then imagine if Hive chooses to spike on its own perhaps owing to a sudden realization of interest from investors. We could also spike based on interest from just about any of our second layer projects even though I really tip a handful in reality to be the main drivers of such a potential surge. There are many possibilities of a breakout scenario that could potentially increase the value of our holdings.
The chances that we could peak with a ceiling in multiples of what we currently have as value is a very real possibility. It is also quite pleasant to know that Hive is fully capable of putting destiny into its hands and not being totally reliant on a crypto market surge. We need neither Bitcoin nor manipulators to determine long term value, putting us in a position to get the best of both Worlds from the industry.