This week seems to have been quite busy with the US senate issuing warnings and directives to Facebook to halt/explain in further details what their libra coin means.
The US government seems to be scared about the prospect of Facebook being the first entity to succeed in creating a global coin/currency.
This has somewhat affected bitcoin positively from my view, afterall, "what the feds are afraid of, must be good for the masses" right?
With so much attention being turned to the US and all, it's hard not to lose sight of steemit and steem. Especially since it now sits at the 77 position on coinmarketcap.com, a long way from the top 15 position it held in 2017.
In all this though, I have been saddened by the utterances by supposedly learned individuals on steemit who see it dropping down the ranks and assume it means steemit is losing value.
I am not happy, neither am I excited about the continuous drop in ranking, but that shouldn't really bother anyone.
See, when it comes to cryptocurrency ranking, one metric ranks above all other, and that is market cap.
There are two ways a coin's market cap can be affected on the website coinmarketcap.com. Either a coin is losing value and so bleeds market cap, or other cryptocurrencies simply rise higher than it in market cap, hence making that other coin drop.
In the case of steem, the market cap has been relatively stable around $120-150m.
While not impressive, especially considering that it has $1b at one point in time, it is not as bad as others make it seem.
What this simple means is that steem itself isn't losing value per say, but rather other coins have shot up in value.
This relatively new stability of steem isn't so welcoming and it gives steem a stagnant out look. Investors are avoiding steem due to many circumstances that I can't include here, but a bleeding steem isn't one of them.
If steem had started bleeding market cap, it would have been on the bottom half of page 2 on coinmarketcap by now
While this isn't a failure, it isn't a victory either. No one knows the psychological effects steem falling below top 100 could have.
It's going to be a big shame as well.