Shimmer (SMR): What’s actually going on with the IOTA side project?

Since September last year, the IOTA side project Shimmer (SMR) has been traded on crypto exchanges. But the current look at the market situation does not bode well for the hopes placed in Shimmer.

Flashback: At the end of September 2022, the IOTA side project Shimmer (SMR) went live and the initial listing at the crypto exchange Bitforex was celebrated by the community. This was because many IOTA investors had participated in a staking program for SMR in advance and could now trade their free allocated Shimmer for cash. But the market situation in June 2023 of Shimmer cannot reflect the advance laurels, the data for example from CoinMarketCap paint a clear picture:

1. in U.S. dollar terms, the price curve from Summer never really gained momentum except for the early days, and SMR is stuck where the journey began with its current price of around $0.50.

2. The cryptocurrency Bitcoin (BTC) has seen about a 50 percent gain over the same period from late September 2022 to the present. So Shimmer was also unable to ride the momentum of the overall market.

In the internationally oriented markets, Shimmer has only a second trading venue besides its listing on Bitforex, Bitfinex. For those who want to trade SMR in Euros, Bitpanda has been an option since this March.

If you take trading volumes as a typical indication of interest in a cryptocurrency, Shimmer’s performance is poor. That’s because CMC’s data names Bitforex as responsible for 75 percent of SMR’s turnover. The catch: Bitforex is known for wash trading, or fake sales. Data services such as CMC or Coingecko therefore explicitly identify Bitforex as untrustworthy.

In reality, Shimmer has only one reputable trading center in US dollars, Bitfinex, where daily turnover is only around 60,000 US dollars. This low liquidity also leads to the fact that the price curve of Shimmer can already be influenced noticeably with an order of 1,000 US dollars. Critics would probably also use the word “manipulate”.

Conclusion: Bleak prospects for Shimmer and IOTA

We also summarized the current situation with IOTA a week ago, and all that really needs to be added to that is that the price curve of IOTA against Bitcoin has reached another all-time low. Those who have now shifted their preferences from IOTA to Shimmer have had little hope so far. Shimmer is also lagging behind promises in terms of technological development and is waiting for the introduction of the Ethereum Virtual Machine (EVM) and, moreover, the abolition of the central coordinator in the mainnet. Even die-hard IOTA supporters often no longer know from where a turnaround is to be heralded here at SMR.

Be the first to comment

Leave a Reply

Your email address will not be published.