NEM Price Prediction 2020: What Will Follow?
One thing we all like to do is speculate on the price of your favorite cryptocurrency. Today, we’ll have a look at NEM, the New Economy Movement. The project launched back in 2015 and is now known as a dual-layer blockchain written in Java. Ever since the beginning, the NEM project has been on top of the charts in terms of Market Cap. A quote from their introduction video: “Where others cloned others’ blockchain designs, we’ve built an entirely new code base”. Let’s see what the project has done in the past and where the price could be going in the future.
What is NEM (XEM)
The original idea for NEM was posted on one of the most popular forum for blockchain back in the days, arguably it still is, Bitcointalk. There were discussions on starting a blockchain that would be suitable for more than simply hosting financial transactions, the idea was to revolutionize a whole set of different industries. From that point, there were two options, either fork from an existing blockchain, in this case, the NXT blockchain, or built from the ground up. The creators decided to go for the second option and on June 25, 2014, the alpha-version was released, written in Java. After 9 months a stable version of the blockchain was released. Ever since the project has focused on increasing its blockchain to stand on the forefront of the blockchain revolution.
The unique feature of the NEM blockchain is the Smart Asset System. It’s a system that can utilize and deliver dozens of simple, but powerful API calls. This means that the decentralized nature of the network is facilitating the network of NEM Nodes to function as API Gateway for the platform. This might sound complicated, but it does make it extremely customizable for each individual solution. These solutions in most cases right now are dApps that are running on the NEM blockchain.
Another unique part of the NEM blockchain is their consensus mechanism. One of the more common forms is the Proof-of-work form, the form that is currently being used by Bitcoin and Ethereum. NEM, however, has the Proof-Of-Importance mechanism. It allows users to participate in securing the network by assigning each node with an importance score. This score is based on how often a node can harvest or collect XEM token rewards. In a sense, it’s similar to the Proof-Of-Stake mechanism but the time-period one stakes are of higher importance. Whether there are enough people to keep NEM ready and available to develop the upcoming years and prepare themselves for the revolution they are foreseeing, that’s what we’ll find out today.
NEM (XEM) Price Prediction 2018
Back in 2018, people were calling for NEM to reach tens of dollars per token. In reality, this has never happened. The all-time-high for NEM was $2.06 that was reached in the peak of the bull run. Ever since, these incredible prices were never reached again. In fact, the price went down just like any other project in 2018. It turned out that the fundamentals for NEM were enough to spark a lot of interest, but not enough to keep the price afloat. This could also be due to an enormous hack that happened in 2018.
In January 2018, an exchange called Coincheck was breached and a lot of funds were stolen. Mainly, XEM tokens were stolen. Around 523 million XEM tokens were stolen, worth around $530 million at the time. In all honesty, this does not say anything about the security for the NEM blockchain, moreso about the security of the exchange. The exchange, Coincheckup, has announced they will refund anyone that was affected during the back. One thing to note is that the all-time-high was reached before the hack had occurred.
NEM (XEM) Price Prediction 2020
When we look at the future for NEM, we have to look at their Roadmap. Once you open up their website you are immediately drawn towards the ‘foundation roadmap’. On there, you will find only one core product that is being promoted. It’s called ‘Catapult’. It’s an upgrade to the core engine of the NEM blockchain that will go by the name of ‘Catapult’. Representing the industry’s most practical and secure blockchain for any kind of business data, NEM is really reaching for the enterprise solution on this one. Catapult should be bringing new features like;
- Aggregated transactions
- Multi-layer multi-signature accounts
- Native public and permissioned interaction
The product is described, but it is unclear when it should be ready. Sources say the technology has been announced back in 2017 and should have been released in 2018. It’s unclear to say what is going on behind closed doors for this company. One thing that is clear is the change of team in the foundation. In December 2018, a new team was elected that have announced to have plans to come up with new ways of leading the company. There have not been too many announcements yet, so we will have to keep waiting and see where the development is headed. 2020 might not be the year for NEM, but the future could have more in store.
NEM (XEM) Price Prediction 2021
To look further into the future we have to start making some assumptions. We have to rely on the team that is behind NEM, the NEM Foundation. This foundations consists of many different levels; An executive committee, council, global team, and country leaders. The problem here is, the main developers are not part of these boards. In 2018, the developers criticized the team for not contributing enough to the Catapult update that was set to release. The newly-elected team then asked for extra funding, $8 million of extra funding to be precise. The request was accepted by the community but it’s unclear what this says about the future. When looking at the current market cap, we might know more.
Market Cap: $359.042.568 USD
Circulating supply: 8.999.999.999 XEM
Total Supply: 8.999.999.999 XEM
In these numbers, you can see that the current market cap of NEM is still really high. It went down to a lower spot on the ranking, but there are still tons of investors. The supply for XEM is non-inflationary. The amount is fixed and up till this date, there have not been any plans to burn or create any tokens. This high amount of tokens can insinuate the probability of the prices reaching high prices again. There’s a lot of money necessary in order to get the project back to where it once was. The all-time-high, that might never be reached again.
NEM (XEM) Price Prediction 2025
In 2025, NEM will probably have released their technological updates and might have even developed more than what they have currently announced. However, the core part of the company is broken at this point. In 2018, the NEM Foundation was not managed in the right way. With the prices falling down, the lack of transparency became evident and the issues started growing. If NEM wants to succeed, it’s important to have a proper team running the project. Especially with their competitors showing stronger teams and partnerships. Just a strong technology does not cut it these days. As a funny comparison, let’s see what happens if NEM would follow the same pattern as some other companies have done before.
- If NEM has the average YoY growth that the Internet went through by amount of users (in its adoption phase 1995 / march 2017 = $0.1847
- If NEM has the average YoY growth that Facebook went through (in its adoption phase 2004 / 2016) = $4.75
- If NEM has the average YoY growth that the Mobile Phone went through (in its adoption phase 1993 / 2013) = $0.1755
As you can see, the only way for NEM to succeed is to follow the same pattern as Facebook did. Well, they could succeed in many different ways, but if the investors would want a good return, this might be necessary. One thing we can all learn from this example, always do proper research. Whenever the technology is looking bright, make sure you do check who is in charge of this technology. As we have seen here, an unstable team can cause a project to slowly go down the drain, so always be careful when investing!
*This price prediction is based on the data collected from various sources. The information presented in this article should not be considered as any sort of investing advice and the reader should do their own research before taking any actions.