@Benzenoid PulseChain is an analogue and hard fork of Ethereum.

Question

@Benzenoid PulseChain is an analogue and hard fork of Ethereum.

We have seen many price performances from "Ethereum like chains" on their 1st Cycle which are impressive when there is decent user growth. PLS and HEX value is effected by its network effect and buy/sell dynamics. HEX "liquid supply" dynamics are not only HEX sellers but also depended on the staker class which is unique and can be positive because less available supply if people stake. A negative to me is that HEX will be in its 2nd Crypto Cycle and Bitcoin halving these Cryptos have usually less exponential user and price growth consider Metcalfe's law for long term value appreciation of the next Cycle with probably less exponential growth rates starting with more users. Do you have a % allocation in mind for PLS vs HEX once you anticipate the low?

#cryptocurrency #english #hex-crypto

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07.09.2023

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T.C. no dm Автор вопроса

I am looking for the best performing asset in this ecosystem. My investment thesis for price performance in Crypto finds its foundation in user growth rates in a Cycle. Your point with liquidity through PulseChain is worrying me for HEX's performance because HEX's primary liquidity pair is PLS right now if there is alot of liquidity between HEX/PLS we might not see a similar price performance to HEX's 1st Cycle because of thicker liquidity which was not the case in its 1st Cycle. Now consider the expected user growth rates PLS vs HEX from above for value growth rates. I am still not sure which is better if I take everything we mentioned into account. Do you think the changed liquidity dynamics because of HEX/PLS pair is a negative or positive knowing that a lack of liquid HEX drove prices up in 1st Cycle?

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07.09.2023

Nenad [I won't dm you]

T.C. no dm
I am looking for the best performing asset in this...

If you mean the AMM liquidity of HEX, it currently isn't bigger than it used to be 2 years ago. It is actually quite low for a 4 year old asset, which is good for price appreciation in bull market, and useful in the bear market to reduce exit liquidity for dumpers (at the cost of less bid support and thus deeper dips). What I meant with liquidity was actual liquidity, not just AMM liquidity. As PLS is a network utility token, it inevitably has thicker actual liquidity (in the sense that everyone using the network can dump it at any given time, which isn't the case with HEX). And inevitably it is being in way more AMM pools as a liquidity providing coin.

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07.09.2023

T.C. no dm Автор вопроса

Nenad [I won't dm you]
If you mean the AMM liquidity of HEX, it currently...

I was assuming that actual liquidity of HEX is higher now compared to current HEX prices in the past before PulseChain HEX/PLS pair existed and saw that as a headwind capturing buy pressure and hindering a replication of price performance that HEX did in its 1st Cycle. I also suspect actual liquidity for HEX will continue to be higher in the coming Cycle because PulseChain exists. I see what you mean with PLS being the utility token that it is a headwind that it can be sold constantly but was thinking that exponential user growth would offset that in its 1st Cycle. I am buying once I see a bottom in the stock market and offset my risk that way. I think both are fundamentally sound investments I am just trying to maximise profit with my allocation.

0

07.09.2023

Nenad [I won't dm you] · Accepted Answer

Nenad [I won't dm you]

I look at PLS more for its network utility token role and its liquidity providing role. I don't really look at it as a particularly good speculative instrument or investment opportunity. It is too liquid for my taste to be used as speculative / investment vehicle. But then there are people who prefer to invest in highly liquid assets. It is a matter of taste / strategy.

0

07.09.2023

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@Benzenoid PulseChain is an analogue and hard fork of Ethereum.

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