Concerns about the consensus mechanisms of Bitcoin (BTC) and Ethereum (ETH) have contributed to the sideways price movement of both assets over the past two months, opening the door for other competing projects to attract attention.
One project that managed to break the sideways movement of the market and hit a new record high on July 10th is Constellation (DAG), a protocol that uses directed acyclic graph architecture to achieve a consensus that is theoretically infinite can be scaled.
Data from Cointelegraph Markets Pro and TradingView show that DAG’s price rose 353% from a low of $ 0.037 on June 22nd to a new record high of $ 0.17 on July 10th.
Three reasons for DAG’s strong performance are the release of a functioning decentralized exchange, a growing list of global partners using the Constellation network for data management, and the network’s ability to offer low-cost, highly scalable transactions.
DeFi-Start brings income for stakers
The recently launched Lattice Exchange (LTX) is an automated market maker-based decentralized exchange (DEX) that leverages Constellation’s Hypergraph network to offer a “near zero fee and horizontally scalable decentralized network”.
#YieldFarming is the perfect way for the community to get in direct contact with @LatticeExchange so that users can use $ LTX and be rewarded at the same time.
Read more about liquidity provision and staking in our latest blog post https://t.co/usZLdkbNMS#DEX #DeFi #LatticeExchange
– Lattice Exchange (@LattieExchange) April 16, 2021
In recent months, the project has added yield farming for LTX tokens via liquidity provision on Uniswap or staking the token directly on the Lattice Exchange for a calculated APY of 155%.
DAG holders can also join the network by staking tokens on a state channel to increase the network’s transaction capacity per second (TPS), or by using DAG tokens to map a node on Constellation’s Hypergraph protocol operate to validate data and transactions and receive rewards paid in DAG.
Partnerships highlight the practical application of Constellation
Constellation’s growing list of ecosystem partners is another sign of the project’s strong foundations.
Notable business partnerships include Amazon Web Services and the United States Airforce. The project has also established industry-related partnerships with Chainlink (LINK) and KuCoin Exchange.
The announced partnership with Liechtenstein Cryptoassets Exchange (LCX) was also a significant development for the Constellation ecosystem as the exchange agreed to support the listing of DAG along with future tokens created using the Constellation Network’s L_0 Token Standard.
Faster transactions, lower costs
Recently, Bitcoin and Ethereum have come under increasing scrutiny because of their environmental costs and high transaction fees. This prompted investors and developers to turn their attention to projects like Solana and Layer 2 solutions, which offer faster transaction speeds.
Just a few months ago, traders and blockchain projects were crippled by high gas fees on the Ethereum network, and that means any project that offers secure, low-cost transactions with a competitive TPS has a chance to succeed.
The new “Stargazer” wallet is connected to Lattice and supports free person-to-person transactions in the network.
As the cryptocurrency community prepares for the upcoming London hard fork on Ethereum, the fate of competing Layer-One and Layer-Two solutions remains in the air as users wait to see if the upgrade results in a significant reduction in fees. Unless the situation improves noticeably, the strengthening of fundamentals and the opportunity to fill a growing demand niche could bode well for the DAG price in the future.
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