3 reasons why Constellation (DAG) outperformed most altcoins this week

Concern about consensus mechanisms of Bitcoin (BTC) Yes Ethereum (ETH) They have played a role in the relatively flat price action both assets have seen over the past two months and have opened the door for other competing projects to grab investor attention.

One of the projects that managed to overcome the lateral movements of the market and hit a new high on July 10th is Constellation (DAG), a protocol that uses an acyclic directed graph architecture to achieve consensus that can theoretically be infinitely scaled.

Data from Cointelegraph Markets Pro Yes TradingView show that DAG’s price rose 353% from a low of 0.037 on June 22nd to a new high of $ 0.17 on July 10th.

4-hour chart of the DAG / USDT pair. Fountain: TradingView
3 reasons why Constellation (DAG) outperformed most altcoins this week
3 reasons why Constellation (DAG) outperformed most altcoins this week

The three reasons DAG performs well include: the introduction of a functional decentralized exchange, a growing list of global partners who use the Constellation network to manage data and provide highly scalable, low-cost transactions.

The introduction of DeFi opportunities brings profit for the stakeholders

The recently released Grid replacement (LTX) it is decentralized exchange (DEX) based on an automated market maker that creates the Hypergraph network Constellation to offer a “Decentralized network with almost nonexistent charges and horizontally scalable”.

In the last few months The project added yield farming for the LTX token by providing liquidity on Uniswap or by blocking the token directly on the Lattice Exchange to generate a calculated APY of 155%.

DAG holders can also join the network by placing tokens in a. lock State Channel to increase the TPS capacity of the network, or by using DAG tokens to run a node on Constellation’s Hypergraph protocol to validate data and transactions and get rewards paid in DAG.

Associations highlight the use of the constellation in the real world

The growing list of partners in the Constellation ecosystem is another sign of the project’s strong foundations.

Partner of the Constellation Ecosystem. Fountain: Constellation network

Among the best-known business associations Amazon web services and the United States Air Force, and the project also has partnerships related to the crypto sector with Chain link (LINK) Yes KuCoin.

The advertised partnership with Liechtenstein Cryptocurrency Exchange (LCX) it was also a major event for the Constellation ecosystem, when the exchange agreed to include DAG along with future tokens created using the network’s L_0 token standard.

Faster transactions = lower costs

Recently, Bitcoin and Ethereum have been increasingly targeted because of their environmental costs and high transaction fees. This has led investors and developers to turn their attention to projects like Solana and second-layer solutions, which offer faster transaction speeds.

Just a few months ago Taders and blockchain projects have been crippled by high gas fees on the Ethereum network, and that means any project that offers low-cost, secure transactions with a competitive TPS has a chance to succeed.

The new wallet “Stargazer” iIt interacts with Lattice and supports person-to-person transactions with no commissions over the network.

Comparison of the DeFi platform. Source: Twitter

As the crypto community prepares for the upcoming London fork in Ethereum, the fate of competing first and second tier solutions remains in the air as users wait to see if the upgrade results in a significant fee reduction. If the situation does not improve noticeably, the strengthening of the fundamentals and the possibility of occupying a niche with growing demand could bode well for the course of the DAG in the future.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you will need to do your own research when making a decision.

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