the steem blockchain did extremely well in 2017 and comfortably stayed at the top place as the world's most busiest blockchain . steem has seen so many fluctuations in price last year with an all time HIGH of $4.41 recorded on the 1st of January 2018 .
STEEM BLOCKCHAIN
The steem blockchain was temporarily replaced by ethereum to take first place some weeks ago. the replacement did not last long and i think it was during the boom of cryptokittens.
click here to know more about cryptokittens.
The replacement was because the number of transactions on ethereum blockchain increased by over 100k transaction. the overtaking didn't last long because steem later came back to its rightful place as recorded here.
STEEM MARKET CAPITALIZATION vs ETHEREUM CAPITALIZATION
STEEM can do some of the things ETHEREUM can do, but the price of STEEM is still way lower than ETH.
The price of ETHEREUM IS greatly tied to its market capitalization which is currently $75,584,475,894 and STEEM has just $1,077,571,814 of market capitalization. the market capitalization is the amount of money pumped or invested into that coin.
So the price of ethereum is gotten by : $75,584,475,894 mkt cap / 96,710,497 ETH
supply = its current price as seen below.
Calculator:
Coinmarketcap.com:
the price of STEEM is $4.40 because its market is $1,091,528,743 / 246,746,210 = $4.4.. .
So what will happen when the market capitalization of STEEM reaches that of ETHEREUM or get close to half of ETHEREUM , the calculation below explains what will happen to the price of STEEM:
When STEEM reaches the current market capitalization of ETHEREUM :
price of STEEM will be = 75,584,475,894 (m.cap of ETH) / 246,746,210 Supply of STEEM = $300 FOR 1 STEEMWhen STEEM reaches half the market capitalization of ETHEREUM :
PRICE =37792237947 (Half m.cap of ETH) / 246,746,210 Supply of STEEM = $150 FOR 1 STEEM
so is this possible ?
well,yes . but let's find out by checking the features that could make me replace ETHEREUM with STEEM .
SIMILARITY BETWEEN STEEM AND ETHEREUM
You can create new tokens with ethereum and use it for ICO. There are hundreds of ICO that was created with ethereum and most of them are doing pretty good, well the same thing can be done with STEEM, using SMART MEDIA TOKEN.
Why you should use STEEM for ICO instead
1. Fees:
Ethereum transactions can only be done with a fee, no fee, no transaction, but on steem blockchain, you can send any amount from one person to another *with no fees.
Ethereum fees: almost half a dollar.
Steem fees: No fees.
2. transaction speed:
there is actually no way i'd prefer using slow internet or slow whatever, its annoying. Even in service delivery, the faster you are, the better you are. same thing applies to transaction speed , the faster your transaction speed, the better .
So let's briefly look at the speed of these two great BLOCKCHAIN
- ETHEREUM has a transaction blocksize of 14.8 seconds and above.
- STEEM has a transaction blocksize of 3 secs
meaning STEEM will do in 3 seconds , what will take ethereum in 14 seconds to do. So we can therefore say steem is over 3 times faster than ethereum.
3. Amount of transaction handled at ease
Steem blockchain:
- Steem blockchain is currently 0.11% of its capacity
- Handling 1,379,991 transaction
- Market cap: $1.1B
- Price: $4.40
Ethereum blockchain:
- Ethereum blockchain is currently using 53% of its ability
- Handling just 915,853 transaction with 53%. imagine if it gets to 1 million transaction like STEEM, what will happen?
- Market cap: $75B
- Price: $776
with the above advantages of STEEM , we will see more use cases for steem , which will lead to increase in its marketcap. the launch of smart media token this year is going to be one of the major driving forces for this huge market cap that we all want.
thanks for watching. Please drop your comments to tell me what you think about smart media and if i have made any error in my calculation, please do well to correct me. thanks
image reference:
- blocktivity.info
- steem.global.