Have you ever been looking for a cryptocurrency that is fast and at the same time offers cero transaction fees? You probably have not been the only one. What seems to be an impossible combination at the current stage of blockchain technology is precisely what Nano promises to achieve. Therefore it has developed its own proprietary approach that is only similar to IOTA among the other major cryptocurrencies. The underlying technology is called DAG (Directed Acyclic Graph) and enables a larger scalability. While DAG counts with a number of advantages over conventional cryptocurrencies it also has its own set of vulnerabilities. Nano’s approach to decentralization possesses its own risks for securing the blockchain and ensuring decentralization. Nano requires a sufficiently high transaction volume to remain stable and in general it is hard for DAG based systems to ensure decentralization.
However, despite the potential shortcomings , the value proposition of Nano is to deliver sound electronic money. In this objective Nano competes with nothing less than Bitcoin itself, the first cryptocurrency invented. Whereas the native for Bitcoin has shifted in the last years from being digital money to being digital gold Nano is still keen on delivering the world’s best electronic money.
Nano initially started off as Raiblocks and rebranded to Nano in January 2018. Nano’s ride so far has not always been smooth. Due to zero transaction fees it remains vulnerable to spam attacks. Furthermore, the Nano community suffered a massive theft of funds due to a large hack of an exchange in 2018 in which particularity funds in Nano were stolen. Despite the hack beeing not associated with Nano itself it caused significant irritation among the Nano community.
Fundamental price analysis
The price of Nano derives its value from the adoption of Nano as a payment system. At the current point in time and given the early stage of the industry the value of Nano is mostly speculative.
Nano is fundamentally different from platform currencies such as Ethereum where investors will be able to stake their coins and achieve a return. Nano does not offer smart contracts nor other types of programmable money. Eventually the objective of the community is that Nano will replace current fiat money. This is a very bold objective which makes the potential market capitalization of Nano massive in the case of a successful implementation of this vision. However, should Nano fail to deliver its promises this will leave the currency behind without any value attached.
Historic price analysis
The price performance of Nano during the 2017 bull run which peaked in January 2018 was excessive. The cryptocurrency went from a price of less than 1 Cent of a USD to more than 34 USD in less than a year. That was an increase by a factor of more than 3000. Thereafter Nano bottomed out in December 2018 at well beyond one USD. That was a decrease of more than 97% from it’s all time high. This incredible gains and losses make Nano one of the most volatile assets among the top 50 cryptocurrencies by market capitalization.
As the bear trend has stopped at the beginning of 2019 Nano consolidated in the range between 1 USD and 2 USD in the second quarter of 2019. It failed to outperform BTC so far in 2019 as many other altcoins did.
Nano price prediction by end of 2019
The exchange hack in 2018 with the subsequent theft of Nano had a strong toll on the community and the price in the previous year. Today this is an event of the past that does not diminish Nano’s value proposition. The developers and the community continue to be engaged which preservers Nano’s possibilities for a bright future.
In case the BTC upward trends continues and the leading cryptocurrency consolidates between 10,000 USD and its previous all time high we expect Nano to finish the year 2019 around 6 USD.
However, in case BTC remains stagnant or even declines in the second half of 2019 it is likely that we will continue to see Nano oscillating in the range between 1 USD and 3 USD.
Nano price prediction by end of 2020
The year 2020 in the cryptocurrency industry will be dominated by Bitcoin’s halvening which is scheduled to occur in May 2020. Bitcoin market dominance describes the share that Bitcoin has of the overall cryptocurrency market. As long as Bitcoin market dominance is around 50% the price of Bitcoin will be the dominant influence factor for the price of fellow cryptocurrencies. Based on these assumptions the mid term price prediction for Nano will heavily depend on the price of Bitcoin.
In case the previous halvening patterns for Bitcoin continue in 2020 and the overall market sentiment will be bullish we expect that Nano will reach half of its previous all time high which would be around 17 USD. This would yield a market capitalization for Nano of more than 2 billion USD. In this event we consider it as very likely that Nano will find its way again into the top 30 cryptocurrencies valued by market capitalization. However, should the overall market performance of the cryptocurrency market and Bitcoin only be moderate then we don’t expect the price of Nano to surpass 10 USD in 2019.
Nano distinguishes itself from the other cryptocurrencies by its unique approach to scalability and its underlying technology. It is one of the few cryptocurrencies that is first and foremost designed to be used as money without any strings attached. Nano counts with an enthusiastic and engaged community. The cryptocurrency is particularly interesting for micropayments due to its free and instantaneous transactions. Since it is has corrected strongly from its previous all time high it has a lot of room to climb in the event of another bull market. Therefore we are optimistic that Nano can outperform the overall cryptocurrency market in 2019 and 2020 in case the most recent bullish trend continues.