3 reasons why Constellation (DAG) price outperformed most altcoins this week

The issues voiced in regards to the consensus mechanisms of Bitcoin (BTC) and Ethereum (ETH) have performed an element within the sideways price motion each property have seen over the previous two months, opening the door for different competing initiatives to realize consideration. 

One undertaking that managed to beat the sideways motion out there and rally to a brand new report excessive on July 10 is Constellation (DAG), a protocol that makes use of a directed acyclic graph structure to realize a consensus that’s theoretically able to infinite scaling.

Data from Cointelegraph Markets Pro and TradingView exhibits that the price of DAG rallied 353% from a low of $0.037 on June 22 to a brand new report excessive at $0.17 on July 10.

DAG/USDT 4-hour chart. Source: TradingView

Three reasons for the robust exhibiting from DAG embody the discharge of a functioning decentralized alternate, an increasing record of world companions who make the most of the Constellation community to handle knowledge and the community’s capability to supply low-cost, extremely scalable transactions.

DeFi launch brings yield to stakers

The lately launched Lattice Exchange (LTX) is an automatic market maker-based decentralized alternate (DEX) that makes use of Constellation’s Hypergraph community to supply a “near-zero payment and horizontally scalable decentralized community.”

In the trail few months, the undertaking has added yield farming for LTX token by way of liquidity provision on Uniswap or staking the token instantly on the Lattice Exchange for a calculated APY of 155%.

DAG holders also can take part within the community by staking tokens on a state channel to assist improve the community’s transaction per second (TPS) functionality, or by utilizing DAG tokens to run a node on Constellation’s Hypergraph Protocol to be able to validate knowledge and transactions and obtain rewards paid in DAG.

Partnerships spotlight Constellation’s real-world software

Constellation’s rising record of ecosystem companions is one other signal of the undertaking’s robust fundamentals.  

Constellation ecosystem companions. Source: Constellation Network

Notable enterprise partnerships embody Amazon Web Services and the United States Airforce and the undertaking has additionally established sector-related partnerships with Chainlink (LINK) and KuCoin alternate.

The introduced partnership with Liechtenstein Cryptoassets Exchange (LCX) was additionally a major improvement for the Constellation ecosystem because the alternate agreed to assist the itemizing of DAG together with future tokens created utilizing the Constellation Network’s L_0 Token Standard.

Faster transactions, decrease prices

Recently, Bitcoin and Ethereum have fallen beneath elevated scrutiny for his or her environmental prices and excessive transaction charges. This led buyers and builders to shift their consideration to initiatives like Solana and layer-2 options which supply quicker transaction speeds.

Just a number of months in the past, merchants and blockchain initiatives had been crippled by excessive gasoline charges on the Ethereum community, and this signifies that any undertaking that gives safe, low payment transactions with a aggressive TPS has the chance to thrive.

The new ‘Stargazer’ pockets interfaces with Lattice and it helps zero-fee person-to-person transactions on the community.

DeFi platform comparability. Source: Twitter

As the cryptocurrency neighborhood prepares for the upcoming London arduous fork on Ethereum, the destiny of competing layer-one and layer-two options stays up within the air as customers wait to see if the improve results in a major discount in charges. If the state of affairs doesn’t noticeably enhance, strengthening fundamentals and the opportunity of filling a rising demand area of interest may bode nicely for DAG price sooner or later.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer includes threat, it is best to conduct your individual analysis when making a call.