After all the tension following the announcement that Verge would cut the rewards it hands out to miners in half today, the cryptocurrency finally achieved its goal.
https://twitter.com/vergecurrency/status/994217486429184000
Despite the obvious implications for miners, Verge’s halving means that the circulating supply of the coin will also grow at half the rate, essentially making it a more scarce resource. If there’s anything we’ve learned from Bitcoin, it’s that scarcity has the potential to provide value.
The slow-down in coins trickling to miners could also help stabilize the cryptocurrency as it dampens the effect of large miners dumping their supply into the market to cash out on their “winnings.
About an hour or so after the announcement by Verge, its value spiked up from $0.07 to $0.076. Immediately after the spike, its total trading volume nearly doubled from $55 million to $99 million, and increased again to $130 million as the price settled down from all the speculative activity.
These sorts of events are usually chaotic. Almost predictably, the mining difficulty for Verge went down from its 24-hour average of 224,220.173 to a low of 144,184.681, signaling the possibility that some miners may have given up on the network after they found out they’re not getting as many coins as they would have liked.
After Verge’s partnership with Pornhub, the cryptocurrency saw a steep drop from $0.112 to $0.06, giving the impression that its rise to glory is over. However, the “little coin that could” brushed off the wounds and started a gradual climb to a stable value, hovering between $0.06 and $0.09.
We may expect activity on the market to continue rising as individuals carry hopes that the lowered block reward could provide more stability to their investments.
This article appeared first on Cryptovest
