After rallying 1.510% in 2021, QTUM price hit an all-time high of $ 35.70 on May 7th. This relatively dark altcoin, launched in September 2017, is a junction of the Bitcoin Core 0.13 version, but also integrates the Ethereum virtual machine (EVM) and intelligent contract execution capability.
After Bitcoin (BTC) crashed to USD 47,500 on April 23, QTUM suffered a 52% correction in 4 days before bottoming out at USD 10. However, the situation for the altcoin improved on May 5th, when QTUM rallied 160% within two days and hit the high of $ 35.70.
QTUM price at Binance, USDT. Source: TradingView
Qtum combines Bitcoin's transaction model with Ethereum's smart contracts
The main goal of the open source platform is to provide simple tools that anyone can use to create decentralized applications (dApps) while maintaining a high level of network security. The project decided to use a slightly different version of POS (Proof of Stake) to prevent malicious nodes. A certain number of blocks are required for the stakeout tokens to be valid.
The Qtum blockchain supports intelligent programming languages for contracts beyond Solidity and has a decentralized governance protocol in the chain. Token holders vote on network parameters such as block size and base gas fee.
While the Qtum blockchain has an on-chain governance system, it also has an off-chain process for approving and handling more important protocol changes. The protocol recently set decentralized funding (DeFi) as the focus and steps to attract new projects.
This strategy finally seems to be paying off as the number of daily network transactions peaked on May 6th.
Qtum blockchain transactions per day. Source: qtum.info
Layout improvements and DeFi Pivot increase the Qtum price
Offline staking was implemented in August 2020 and has grown to more than half of the staking activity on the Qtum blockchain. Investors who do not want to deal with their own nodes can make non-custodial delegation for their coins.
On March 17, Value Network announced plans to migrate away from Ethereum due to network congestion and high costs. The company is now moving to the Qtum smart contract and DApp platform and has received a development grant to help expedite the transition.
On March 31, Qtum founder Patrick Dai said the protocol was working to enable smart contracts for Filecoin (FIL) over the Qtum network.
The network switched over a hard fork on April 30 from a 128-second block average to a 32-second block average. The average four weeks it took for an average sized staker to become valid has been reduced to one week.
Ethereum compatibility means increased interoperability
Interoperability is another reason for QTUM's recent rally. The team is developing Neutron, an agnostic interface that allows virtual machines to run on multiple blockchains. Additionally, users can build DeFi applications with their own DEX called QiSwap and provide liquidity on top of the Qtum blockchain.
VORTECS ™ data from Cointelegraph Markets Pro identified an optimistic outlook for QTUM on May 5th ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS ™ Score vs. QTUM Price (white). Source: Cointelegraph Markets Pro
As can be seen in the graph above, the VORTECS ™ Score began to rise on May 5th, reaching a high of 71. It is worth noting that the VORTECS ™ Score resumed approximately 24 hours before the price increased by 100% All time high hit $ 35.70.
Qtum wants to compete with some serious competitors like Cardano (ADA), Polkadot (DOT), VeChain (VET) and Solana (SOL). The project has an impressive market cap of $ 2.74 billion.
However, in order for QTUM to increase its valuation, investors will likely want more decentralized applications and Total Value Locked (TVL) on the network.
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