With the crypto market seemingly rebounding from a painful year of downtrends and scandals, speculation is rife about new highs and the end of crypto winter. During the first month of the year, Bitcoin’s price increased by 39.7%, the largest increase since October 2021. Also, Bitcoin had its best January since 2013. The lead set by Bitcoin prompted other cryptocurrencies to quickly follow, bringing the total crypto market capitalization above $1 trillion for the first time since September 2022. Nevertheless, it has not been able to consolidate above the threshold level up to this point.
Dash, meanwhile, soared by 43% in January, outpacing the broader cryptocurrency market. Why is this kind of growth possible? It’s worth taking a look at.
A scalable alternative to Bitcoin, Dash was forked from it in 2014. The two-tiered structure of the blockchain increases privacy and speeds up transactions. The first layer of the network, TIER1, is a peer-to-peer network of miners adding new blocks. Masternodes and full network nodes in TIER2 execute anonymous and instant transactions, as well as provide decentralized budgeting and management functions.
Using innovative technologies such as ChainLocks, Dash protects both its mining layer and its master node layer against malicious attacks.
Moreover, Dash is the longest-standing decentralized autonomous organization (DAO) established in 2015. The Dash network has a treasury funded by 10% of block rewards, a combination of network transaction fees, and newly minted Dash that miners receive in return for helping secure the network.
In recent months, the transaction volume of Dash has skyrocketed, suggesting buyers have taken long positions anticipating future gains. The transaction volume spiked by 125.73% within the last month, coming in at $14.06 million as of this writing.
Newly created addresses receiving their first Dash deposit and active addresses making one or more on-chain transactions are also increasing, up 17.25% and 17.84% respectively for the past seven days.
Furthermore, it’s interesting to see a breakdown of demand for Dash over the past month, showing that the majority is for Payments – transactions with merchants and unidentified addresses, followed by Mixing transactions – which combine inputs and distribute them for anonymizing future private transactions within the same block, and other types of transactions, as shown in the chart below.
Trading transactions refer to those occurring in addresses labeled as belonging to an exchange. A Block Reward/Fee (Coinbase) transaction is the first one in a block, created by a miner and used to allocate the block reward. These are originally referred to simply as Coinbase transactions but are unrelated to the crypto exchange of the same name. Denomination refers to transactions that are sent to a master node to participate in a mixing session. Private Send refers to the anonymous transactions sent between addresses after the process of mixing. Lastly, a CollateralPayment transaction is a fee randomly charged in 10% of mixing sessions to prevent spam attacks.
Growing demand for Dash could be a result of the upcoming Dash Platform test net release. It’s a Web3 technology stack for creating decentralized applications. The platform includes various innovations, such as Drive, a consensus-based storage component, and DAPI, a decentralized HTTP API that converts Dash’s P2P network into a cloud-based one.
There are 11,124,004 DASH coins in circulation. The total supply will be reached by the end of 2025. DASH, with a market cap of $659 million, is currently trading at $60.77, up 131.72% from its cycle low.
The Accumulation/Distribution technical analysis indicator confirms upward momentum.
This article does not provide investment advice. The information provided here is for informational and educational purposes only and should not be used for investment purposes.