The last few days have been surprisingly strong for altcoin projects like Audius and Solana. In fact, while major cryptos like Bitcoin and Ethereum are performing well, other lesser-known alternatives have been getting a lot of attention lately. According to experts, the question is: Are these altcoins the right choice for investment? When it comes to Audius, its future may not be what you expect.
Music giant’s altcoin project Audius records 326% increase
Audius is a crypto-powered music streaming service that launched its token AUDIO in October 2020. Since its listing, the bottom has exploded in price and value, trading at the intraday high at $3.32.
Over the past few months, it has risen almost 1,705%, with a one-day high of 70% on Monday. In fact, after the latest uptrend, AUDIO is up 326% since the last week of July.
A major factor behind this rally is the news that made it popular beyond just the crypto market. Audius announced its collaboration with TikTok on Monday. This collaboration will allow users to share audio tracks from Audius directly on TikTok. This is a huge improvement, especially since TikTok banned any kind of crypto-related promotional content on the platform in July. Beyond all the news, what is the real value of the network?
Is it worth investing in this altcoin project?
Looking at the data on the chain might give us a better idea. This altcoin, unsurprisingly, is not a coin that bounced off the market movement. Rising thanks to its influencers, Dogecoin has a much higher value than the likes. In fact, AUDIO has strong development activity behind it and the same momentum has continued since June. On average, DOGE has only 2 developers, while AUDIO has about 8 developers.
Audius correlates stronger with Bitcoin than Cardano
Not only that, it also has a higher strong correlation with Bitcoin than Cardano. Additionally, the average balance an address had was $110,798. Reason? The network’s low address count was only 16.2 thousand at the time of writing. Even so, high volumes of $825 million have been seen in the last 24 hours alone.
Simply put, AUDIO is primarily a whale icon. This means that whales dominate the entire circulating supply, with more than 91% of it in their wallets. Such dominance makes the coin susceptible to whale sales. This coupled with the volatility of AUDIO, the price could drop at any time without warning. This is simple math. If its price can go up 70% in one day, it can drop just as much, if not more.