Akash Network (AKT) has recently appeared in the list of the worst performers in the crypto market losing 4%. 1% drop in value of this virtual currency over the past 1 day or 24 hours. Currently priced at $2. 37, However, it is possible to note that by evaluating the market of Akash Network there are several factors that can explain this decline. The smaller capitalization ranking WHO at 89 had a market cap of almost 589 million means that the recent decline has raised tones among its investors.
Currently, the trading volume of Akash Network in the last one day has had about $7. The youngest is 96 million years old and is a month older than the previous one which is 13. 53% decrease. This reduction in trading volume coupled by the fact that the volume to market capitalization ratio equals one. 35%, suggesting a decline in trading and perhaps declining shareholders ’ interest in the short term. This stage, therefore, gives a “no movement” indication and repeats; if this trading pattern continues, the price of the stock will start dropping. This volume of trading is also bearish in that fewer people exist willing to trade, and this may be mainly due to such factors as uncertainty or negative market information.
As per the information available in the present context, circulating supply of Akash Network’s token AKT is 248,285,795 AKT which is approximately 63%. Aluminum has managed to reduce its Energy-Intensity of its total supply by 90%. The total quantity of AKT circulation is slightly more in number, equal to $ 248,285,801 while the maximum circulation remains limited at 388,539,008 AKT only. The current supply indicators reveal that the majority of the total and max supply is circulating supplying and can contribute to prices instabilities. In this scenario if there are new AKT tokens launched in the market and the external conditions are not ripe, then there are higher chances of the tokens reducing in value.
To carry out the calculation of the fully diluted market capitalization it will be $ 922. 25 million, it implies if all the max supply of AKT were in circulation will give better market capitalization figure. Nevertheless, the difference and the current market cap and the fully diluted market cap point out at possible further fluctuations, specifically in case of an embodiment of the large number of tokens.
There could be many reasons behind this trend, which is apparently not so favorable for Akash Network. Firstly, the macroeconomic factors of the overall cryptocurrency market, may be in operation here Second, the speculative nature of cryptocurrency might be irresistible to some investors. Such corrections are usually even heavier on small and mid-cap tokens, and Akash Network is no exception here. Perhaps investors are divesting from the riskier stocks and going for safer ones hence decreasing on its worth.
Secondly, the state of project-specific developments or the absence of such developments within investing markets can either contribute to the growth of a positive period or exert pressure and result in changes in the market sentiment. If there is an indication that the activity is slowing down, less updates or less partnership, then this is an indication for the holders to sell. On the other hand, regulatory news or worse news updates from the broader decentralised finance space might well be a reason affecting its investor sentiment.
Last but not the least; there might be some technical factors that might also reduce the value of the financial instruments. Its prices can be volatile because traders use technical analysis the predict the prices and when a certain support level is breached, ‘sell-stop orders’ are initiated causing the prices for securities to drop lower.
Thus, despite the recent decline of Akash Network, we have to take into account certain overall factors for this market and the particular developments regarding the project into account. With regard to its current and potential volatility, it is recommended that the investors pay attention to trading volume, supply factors and market sentiment when forecasting future changes in AKT price. The cryptocurrency market is known to be very unsteady, and despite the fact that today’s downturn is relatively significant and could be viewed as a possible long-term investment opportunity.
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