XinFin Network is an open-source hybrid blockchain consortium, connecting global enterprises with local businesses, to invest in and develop emerging economies. With the recent Bitcoin rally, XinFin has experienced a significant price drop. This article will go through some of the factors that are affecting the price of XinFin Network resulting in a longer trend downwards.
The first reason can be traced to the general sentiment in the crypto market. The recent Bitcoin rally has led to a lot of uncertainty and confusion in the market, leading many investors to sell off their altcoin holdings in fear of being caught in a dump. XinFin is one of those affected by this trend.
Secondly, XinFin Network has been increasingly losing its stronghold over its market space as competitor IOTA manages to incorporate blockchain technology into the internet-of-things (IoT). This development may mean that XinFin will have a tough time impressing institutional investors who are not well versed with blockchain technology and do not see value in tokenization.
Bitcoin Rally:
As mentioned in earlier articles, XinFin Network has a buy-back program which is funded by the block rewards. The recent rally in the price of Bitcoin has made it so that not enough BTC are available to buy back XDC every month. This results in XDC remaining on exchanges and the price dropping significantly. In addition to this, since XinFin acts as a reserve currency for its ecosystem, many people who want to use the ecosystem will first purchase some XDC, instead of USDT or BTC that would be used in other ecosystems such as Ethereum. Thus, the lack of BTC for buy-back has further amplified the drop.
XinFin Network Price Prediction: Why $0.05 is a Possibility https://t.co/cNv4r9HSuw pic.twitter.com/TTadJmU6QA
— InvestingCube (@investing_cube) August 17, 2022
Limited Liquidity:
The recent rally in the price of Bitcoin has affected the trading volumes of XinFin, which creates a vicious circle where there are not enough people using XinFin to make it liquid, and as a result, even less people use it. In addition to this, BTC is used as a reserve currency by many people in XinFin’s ecosystem and further reduces the overall liquidity. This results in a further decrease in volume and price.
Recent News on XinFin Network
In the last few days, the XinFin website has been down and in addition to this, there was a price drop that lasted for over 24 hours. This has caused many people to believe that the recent rally had been reversed. Another thing that should be noted is that during this time of value decline, there were very few announcements released by the organization itself, which led many people to believe that it was because of an internal issue within XinFin. Current Price of XinFin Network
XinFin Network Price Prediction
XinFin Network had a significant price drop during the recent Bitcoin rally, and it has also been affected by the overall sentiment in the crypto market. It is also losing its stronghold over its market space as IOTA brings blockchain technology to IoT. In addition to this, there hasn’t been much news or announcements made by XinFin in the recent days which led many people to believe that it is because of internal issues. There are a lot of factors that are affecting the long-term value of XinFin Network, making it difficult to make any sort of prognosis on where they will be at the end of 2022.
The price of XinFin Network has seen a significant drop in the past few weeks, which means that it is highly likely that a long-term trend downward will prevail.
Conclusion:
While the XinFin Network has had good growth recently, the current dip in price could indicate that the crypto market is beginning to consolidate and turn bearish bull market. On top of this, it is also experiencing increased competition from IOTA and other projects which would further contribute to its slow down in growth. This means that we should expect them to continue facing a lot of turmoil leading up to 2022.
