Dash Price Rises Exponentially, But Is it a Bubble?

The cryptocurrency Dash has seen a significant price spike over the past couple of weeks. Dash even acquired the cryptocurrency market capitalization top three position, and is priced over US$46 at the time of writing. Some cryptocurrency enthusiasts have applauded the significant rise for various reasons, while others believe the pump just doesn’t add up.

Dash Sees Significant Price Rise and Infrastructure Support

Dash Price Rises Exponentially, But Is it a Bubble?The cryptocurrency Dash (formally known as Darkcoin) has increased in value exponentially. Dash community members attribute the increase to the currency’s features such as quick confirmation times, low fees, a built in tumbler, and a governance system that uses masternodes. Since the upgrade, Dash has experienced a price increase of 295 percent, peaking at $60 USD per coin on March 2.

Many cryptocurrency infrastructure providers have been adding Dash to their repertoire. Hardware wallet manufacturers Trezor and Keepkey have added Dash support to their devices while exchanges like Wall of Coins, and Bitfinex have integrated the altcoin. Bitfinex Chief Strategy Officer Phil Potter details, “Dash is currently experiencing its breakout moment right now, and we want to be able to provide our growing customer base with seamless access to one of the rising stars in our space.”

The cryptocurrency Dash has seen its share of ups and downs over the years, receiving its first significant rise during the inception of the masternodes. The price per Dash rose to a high of $15, but subsequently dropped to a low of $5. Dash has also had to dodge rumors of an initial insta-mine and masternode centralization while appreciating over the course of 2016 and into 2017.

Dash Price Rises Exponentially, But Is it a Bubble?
Dash trading volumes have increased quite a bit.

Criticism From Ark Invest Analyst Chris Burniske

Meanwhile, the latest Dash price spike has received criticism, as well. Two weeks ago Ark Invest senior analyst Chris Burniske did some research on Dash and states, “some things still aren’t adding up.” The pumping price has caused Burniske to remain skeptical of the Dash rise as he reviews the currency’s average transaction value, daily transactions, and masternodes.

Dash Price Rises Exponentially, But Is it a Bubble?
Dash transactions hover at around 1,500-2,500 per day.

“For one, the average transaction value is extremely high,” explains Burniske. “For example, data from 2/21/2017 implies average txn value > $4K, which is 4X bitcoin. I would have to imagine this is largely masternodes / miners moving around their Dash? Such a hypothesis would jibe with the fact that the number of transactions per day using Dash has gone nowhere since launch. It’s stuck between 1500-2500.

Similarly, the number of Dash transacted/day has also gone nowhere. Again, a flat pattern from launch implies to me this equals masternode/miner activity. The only thing for Dash that has gone up is the trading volume, which jibes with a pumping price. But that only works for so long…

When Burniske publicly stated his opinion, Dash supporters disagreed with his analysis. So far Dash has continued to hold its high price point and its leading market capitalization of $329 million just below Ethereum. Others have also speculated some of the Dash price increase is also due to the current Bitcoin network congestion, as Dash may give people the opportunity to transact faster and with lower fees.

What do you think about the Dash price spike? Let us know in the comments below.


Images courtesy of Shutterstock, Chris Burniske Twitter, and Dash.org. 


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  • sandwich

    “Others have also speculated some of the Dash price increase is also due to the current Bitcoin network congestion, as Dash may give people the opportunity to transact faster and with lower fees.” If that were the case, there would be a noticeable spike in transaction volume.

    • Joshus Light

      Bitcoin my not be sustainable. Dash has much more potential

      • Bitcoins and Gravy

        That is incorrect sir. But you are free to believe anything you want!

        • Joshus Light

          Why not? Bitcoin transactions are starting to take longer and cost more. So what makes it more substainable? Dash has active marketing and speed.

    • qwizzie

      just google Roger Ver and Dash, it seems like people are testing Dash with regards to transaction time and fees.

    • Bitcoins and Gravy

      Exactly.
      : )

  • Joshus Light

    My big question is whether Dash might start rivaling bitcoin

    • Bitcoins and Gravy

      I can answer that for you Joshus. No Dash will not “start rivaling bitcoin”
      Sorry to disappoint you old sport.
      : /

    • Dalmazio

      It’s possible, but more as a decent diversifier than as a direct competitor, at least in the short-term. Especially given that Bitcoin’s transaction delay problems and congestion issues continue to exist, as only about 25-30% of nodes have adopted SegWit which paves the way for the Lightning network which solves many other Bitcoin technical issues. With that level of lack-luster adoption of SegWit many Bitcoin holders might seek to diversify at least some of their coins into other coins, fearing a hard fork between proponents of SegWit vs. BU in the not-to-distant future.

      • Lachlan Sean C

        I think you mean 25% of miners. Its more like 80% of nodes have adopted SW. UASF is coming for ya Jihan and Ver.

  • qwizzie

    I think the recent price increase is a combination of Dash having successfully hard forked into update v0.12.1 through its spork technology, its ability to engage and establish partnerships with companies like Wall of Coins and several hardware wallet providers that add value directly to Dash and also of anticipation that is slowly building up towards Dash next large update named Dash Evolution that has been bumped up with regards to its release.

    • Bitcoins and Gravy

      Where are the transactions, the merchant adoption and the use cases? I think Dash has potential, but jeez guys calm down a bit ok? It could take 3 to 6 years for merchants to even learn about Dash.

  • Thanks for posting. I like reading about Dash. I don’t follow many altcoins (I’m mainly into Bitcoin) but I do follow the following altcoins –

    (1) Dash

    (2) Filecoin

    (3) Namecoin

    • Bitcoins and Gravy

      Hmmm

  • Bitcoins and Gravy

    Nice article Jamie!

    “The only thing for Dash that has gone up is the trading volume, which jibes with a pumping price.”

  • Bitcoins and Gravy

    The best use case for Bitcoin is not necessarily moving money or purchases. The Blockchain tech is much more elegant than most people realize.

  • Robert Louis

    This is kind of The pot calling the kettle black.

    “Oho!” said the pot to the kettle;
    “You are dirty and ugly and black!
    Sure no one would think you were metal,
    Except when you’re given a crack.”

    “Not so! not so!” kettle said to the pot;
    “‘Tis your own dirty image you see;
    For I am so clean – without blemish or blot –
    That your blackness is mirrored in me.”