Greetings community,
We hope that you are all safe and healthy during this time of uncertainty and economic concern. This article is going to analyze the state of some of the most powerful and well-known Masternode coins, particularly as it pertains to the coronavirus world pandemic. Has the virus impacted the cryptocurrency space? What about the Masternode space? Was this impact for better or worse?
Though the infamous virus probably originated sometime in the Autumn of 2019, we are going to start our analysis from March 11. Though the outbreak had surely been spreading before this day, March 11 is the day that the World Health Organization officially declared a pandemic. This declaration caused a massive drop in global markets, and a bearish trend that even extended into crypto.
Here is the BTC/USD chart on a 4H timeframe, starting on March 11 with the WHO’s pandemic declaration. The markets turned extremely bloody, breaking their strong $8k support and plummeting to a low of $3901. In the time since, BTC has stabilized above the $6k level, and has been reclaiming its recent gains. It remains to be seen if the markets turn bullish, and market sentiments still remain extremely fearful, though it has slowly been moving upward.
The Crypto Fear/Greed Index as of Apr 23
So while the crypto market in general, dictated by BTC, has been bearish or neutral, what about the Masternode market? We will take a look at a large cap, medium cap, and small cap Masternode coin and analyze how the global conditions have impacted each of them.
DASH
- MARKET CAP: $765MM
- CMC RANKING: #18
- Price vs. USD
The above chart shows the price of DASH vs. USD from March 11 to present, taken from Masternodes.Online. As you can see, though it experienced some momentary drops downward, it’s actually trended upward vs. USD despite Bitcoin’s general decline in value.
That makes this next chart no surprise. If BTC is declining against USD and DASH is making gains, then DASH is making even better gains against BTC. This upward trend starts with DASH worth about 0.09 BTC per coin on March 11, and now worth about 0.11 BTC each, marking about a 22% gain in a little over one month.
The last chart we will look at for DASH is the number of Masternodes active on the network since March 11, as it is an indicator of the network strength, which is an important fundamental for any Masternode coin.
The above chart is actually a bit surprising, as the number of Masternodes on the DASH network has actually decreased by a little over 100 over the past 40 days. Perhaps some investors are cashing out their gains with the price increase, but typically a decline in node count correlates with a price decrease, since more coins are coming onto the market.
DIVI
- MARKET CAP: $15.3MM
- CMC RANKING: #163
Against USD, DIVI has been relatively stable since the pandemic started. Starting with a value of around $.007 on March 11, it experienced a slight dip on March 16, and then has stabilized between the $.009 and $.01 level over recent weeks.
Against BTC, DIVI shows a different trend. As BTC has risen after its March 11-16 crash, DIVI has held its value in USD but has lost BTC value.
DIVI is a tiered Masternode coin, so there is no single chart that shows its number of nodes over the past 40 days. Therefore, since DIVI has 5 tiers, we will look at the tier 3 node count chart as a sample for the project as a whole.
The node count for DIVI has actually increased, despite its flat price action. Over the past 40 days, the number of Gold DIVI nodes has increased 14% from 143 to 163. This means that 20M more DIVI coins have been locked into Gold tier nodes alone. Given that DIVI has a lower coin lock rate of 48%, the correlation between node count and price will be weaker, due to a higher float.
MIDAS
- MARKET CAP: $700K
- CMC RANKING: 954
Finally, our small cap Masternode coin to analyze is Midas coin itself. Let’s take a look at how the project has performed price-wise since the outbreak:
Against USD, Midas has performed wonderfully in recent weeks. Starting from a price of $.40, it has now risen to a value of $.51, which is a 27% increase!
Also against BTC, Midas has achieved nice gains. Starting from a Bitcoin value of 5k sats on March 11, it has risen to nearly 7k sats, marking a remarkable 40% gain over BTC in the allotted time.
Given Midas coin’s relatively high coin lock rate of 65.8% (as of time of writing), it is not a surprise that its rise in value correlates with node creation. Since nodes take coins off of the market, this creates less of an available supply, which increases the effect made by growing demand. The Midas network increased by a number of 57 nodes, taking an additional 142,500 coins off of the market. According to Masternodes.Online, the current supply of circulating coins is only 1,630,019 Midas, which means that in this time the locked coin % has increased by almost 9 points.
Conclusion
Despite the less-than-ideal global and economic conditions, the Masternode industry has been incredibly resilient during this time. Even as BTC falls, Masternode projects of all sizes with strong fundamentals and engaged communities have flourished. It’s important to note that there are certainly those projects that have suffered, but the trend is clear: Masternode projects with dedicated teams, working products, and strong communities have weathered the storm and grown stronger.
