NPXS, the native token of PundiX, a PoS (Cryptocurrency Point of Sale) solution provider, has seen a massive price increase over the past 48 hours.
In just two days, Binance’s NPXS price rose more than 130%, outperforming most of the major cryptocurrencies on the exchange.
There are three main reasons for the rally: the introduction of token use, the token reduction and the overall positive sentiment in the altcoin market.
Token use and fewer NPXS tokens
On March 13th, Zac Cheah, the CEO of PundiX, affirmed that the reduction and setting of tokens for NPXS will take place this month.
When the supply of a token is reduced, it immediately acts as a catalyst as it usually increases the price if the demand remains the same.
PundiX is reducing its token offer to a ratio of 1000: 1 and renaming the native token from NPXS to PUNDIX. The rebranding leads to a general surge in interest in NPXS, considering that the token has been consolidating over an extended period of time.
In addition, setting tokens further amplifies the positive effect on value, as more users are using NPXS and not selling when the token is blocked. Cheah said:
“As planned, the token reduction of $ npxs will begin at the end of March, followed by (immediately or a few days later) token use. The stake bonus is USD 100,000 + value per week for ten weeks. Someone said it was better to put our stake ‘ DeFi farming ‘. So yes, Pundi X DeFi farming is coming! “
As Cointelegraph previously reported, many cryptocurrencies have seen a major rally in the last few months after staking was introduced.
For example, Theta Network introduced the stake for the THETA token, which coincided with the price of the token, which hit a new all-time high on February 14th.
Dealers expect more “old season”
The altcoins market has seen significant rallies almost across the board as the Bitcoin price is currently consolidating between $ 56,000 and $ 59,000. In addition, the capitalization of the altcoin market has hit a new all-time high at nearly $ 730 billion, an increase of around 50% from 2017.
A pseudonymous trader called “Rekt Capital” said this was a perfect example of market cyclicality, suggesting that the overall trend remains very optimistic. He wrote:
“Altcoin Market Cap introduced new all-time highs at the same level as Altcoin Market Cap on new all-time highs in December 2017. A perfect example of market cyclicality, if there ever was one.”
Other notable rallies in altcoins include Harmony (ONE), Siacoin (SC), Terra (LUNA), and BitTorrent (BTT), all of which have increased from 40% to 140% in the past 24 hours.
Finally, the market sentiment around PundiX after the start of the test network on February 11th was generally positive, as Cointelegraph reported.
In addition, on March 20, VORTECS ™ data from Cointelegraph Markets Pro began to see an optimistic outlook for NPXS.
The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
The VORTECS ™ value for NPXS went from around $ 0.006 to up to $ 0.0082, or about 30%, from yellow to green a few hours before the price spike on March 20.
As long as the altcoin market continues to rally and consolidates Bitcoin above the USD 55,000 support area, the positive market structure of NPXS should remain intact.