3 Reasons Constellation (DAG) Outperformed Most Altcoins This Week
The move to DeFi, the release of new wallets, and low transaction costs resulted in a quick rally to push DAG to a new all-time high (ATH).
Bitcoin and Ethereum consensus concerns have played a role in the sideways price move both assets have seen over the past two months, which has allowed other competing projects to grab attention.
One project that weathered market moves and hit new record highs on July 10th is Constellation (DAG), a protocol that uses a directed pivot graph architecture to reach a consensus on theoretically infinitely scalable.
Data from TradingView shows that DAG price rose 353% from $ 0.037 on June 22nd to a new record high of $ 0.17 on July 10th.
DAG / USDT – 4 hour chart | Source: TradingView
The three optimistic reasons for DAG include the introduction of a decentralized exchange (DEX), a number of global partners using the Constellation network for scalable data management, and the network’s ability to offer low-cost transactions.
Introduction of DEX
The recently launched Lattice Exchange (LTX) is an automated market maker (AMM) -based DEX that leverages Constellation’s Hypergraph network to provide “near zero fees and an open decentralized network” horizontally.
“Profit farming is the perfect way for the community to interact directly with Lattice Exchange so that users can spend LTX and be rewarded at the same time.”
In a few months, the LTX-Token project has expanded to include profitable farming by providing liquidity on Uniswap or staking tokens directly on Lattice Exchange with a calculated APY of 155%.
DAG holders can also join the network by staking tokens on the state channel to increase the network’s transaction-per-second (TPS) capacity, or by using DAG tokens to establish a node on the Hypergraph protocol run by Constellation to validate data and transactions and receive rewards paid in DAG.
Constellation’s growing list of ecosystem partners is another indication of the project’s strong foundations.
Partner in the Constellation ecosystem | Source: Constellation Network
Notable business partnerships include Amazon Web Services and the United States Airforce, and the project has also built industry-related partnerships with Chainlink (LINK) and the KuCoin exchange.
The announced partnership with Liechtenstein Cryptoassets Exchange (LCX) is also a significant development for the Constellation ecosystem as the exchange agrees to support the listing of DAG alongside future tokens created using the Constellation Network’s L_0 token standard.
Faster transactions, lower costs
Recently, Bitcoin and Ethereum have come under closer scrutiny due to their high environmental costs and transaction fees. This is causing investors and developers to turn their attention to projects like Solana and Layer 2 solutions, which offer faster transaction speeds.
Just a few months ago, traders and blockchain projects were paralyzed by high gas fees on the Ethereum network, and that means any project that offers secure, low-fee transactions with competitive TPS has development opportunities.
The new “Stargazer” wallet is compatible with Lattice and supports free transactions between people in the network.
Compare DeFi. Platforms | Source: Twitter
As the crypto community prepares for the upcoming London hard fork on Ethereum, competition between Layer 1 and Layer 2 solutions continues as users wait to see if the upgrade results in significant fee reductions. Unless things improve significantly, strengthening fundamentals and the need to fill a growing niche could bode well for future DAG prices.
You can see the details of the DAG price.
According to Cointelegraph