It must be spring because markets are turning green again. Many top coins marked double-digit gains, but today we’re going to talk about yesterday’s biggest winner: Ark. What is it and why is it rising?
ARK Crypto Fundamentals
ARK’s value rose by over a third on Sunday, drawing attention back to the scalable smart contract platform. So what is it? ARK is a platform for scalable smart contracts, similar to Ethereum. But there’s one key difference: ARK is designed to bridge different blockchains, allowing smart contracts from ARK to interact with Ethereum or any other protocol. That could be big news for decentralized exchanges or any project that wants to run its own blockchain.
- Low Energy Costs
- Scalable smart contracts
- Smart Bridges connecting multiple blockchains
Ark uses a delegated proof of stake consensus algorithm, meaning there’s no mining. Instead of competing to form new blocks, users use their tokens to “Vote” for a delegate, who takes turns creating blocks. There are 51 delegates, and they usually distribute block rewards among their voters.
- dPOS Could have severe governance issues.
- ARK could be eclipsed by newer projects like EOS and TRON
That makes Ark a lot faster than Bitcoin or Ethereum, but it comes with some downsides. Some critics say DPOS is too centralized, making it too easy for delegates to hold onto power. And, although Ark was pretty impressive when it launched in 2016, it’s currently no match for TRON or EOS which have millions of transactions per second. There’s also no virtual machine, meaning it can’t run smart contracts.
Does that make ARK a historical relic? Not necessarily. There’s still a need for an efficient cross-blockchain protocol, it’s just not clear which blockchain is going to deliver it.
ARK’s Price Action Analysis
Looking at ARK’s price action on the charts, the token corrected most of the gains on Sunday. However, it did manage to break above the Ichimoku Cloud for the first time since November 2018. But this time in a very strong bullish sentiment.
If history is any indication of future market behavior, we could expect ARK to reach the pivot level of $1.16 after it’s finished with the pullback. That is precisely how the Ichimoku strategy could work for traders of this token. However, looking at IDDA’s third point, we’d need a much stronger bullish sentiment for it to reach the highs of last May at $4.00.
Now I’d like to hear from you and your thoughts on ARK’s protocol and recent gains. Head over to the comment section and let me know if you think the ARK’s bulls strong enough to keep the price going up, and if you think ARK has got what it takes to compete with TRON andEOS..
Remember that a s the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.
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