The market-wide sell-off on May 19 sparked a 55% drop in the price of Bitcoin (BTC) and altcoins were hit even harder, with some tokens seeing a drop of up to 90%.
One project whose price for native tokens has apparently bottomed out after falling 87% from its all-time high is Verasity, an esports-focused blockchain protocol that focuses on increasing engagement and ad revenue for video publishers concentrated.
Data from Cointelegraph Markets Pro and TradingView show that after falling from a high of $ 0.0558 on April 17 to a low of $ 0.0073 on July 20, the price of Verasity’s VRA token rose 230% to a Intraday high at $ 0.024 on August 17th. 24-hour trading volume is steadily increasing.
Three reasons the price of VRA could rise after its recent low is an active community, the inclusion of the NFT language in the Proof-of-View patent of the fraud prevention protocol, and attractive staking rewards offered by token holders encourage them to withdraw their coins from circulation.
Community activity adds a use case
An active community of supporters is one of the best assets a cryptocurrency project can have as they can help drive significant integrations and attract new partnerships to the ecosystem.
The Verasity community recently voted to include VRA as a form of payment on Shopping.io, a crypto e-commerce website that allows users to shop at numerous online retailers such as Amazon and eBay.
Congratulations VERASITY on winning the Coin of Operation coinmaker $ VRA is integrated as a means of payment on https://t.co/evdeNNkkr7!
Verasity owners can purchase items from Amazon, eBay, Walmart, and Etsy using the $ VRA token! #SPI #GSPI #CryptoEcommerce pic.twitter.com/AzTcXiJUqE
– Shopping.io (@shopping_io) August 3, 2021
Now, content creators who earn VRA can spend their earnings on their favorite ecommerce sites instead of having to exchange them for another currency first.
This adds a new use case to the VRA token and helps increase the token speed.
NFTs are built into the proof-of-view protocol
Another significant development by Verasity was the Proof-of-View Protocol, which was originally developed to allow users to differentiate between real and fake views on the blockchain, and which was subsequently granted a US patent.
Since its inception, use cases for proof-of-view have increased, and the Verasity team expanded the original patent to include non-fungible tokens (NFT), one of the fastest growing sectors in the financial technology sector.
#NFT sales exceeded $ 250 million in the past 12 months.
The market capitalization growth of NFTs surpassed 1.785% in 2021 as demand explodes.
Who Wants To Prevent Fraud? We are with #ProofOfView
Learn how: https://t.co/vd1KLYGIiD#Blockchain #crypto #NFTCommunity pic.twitter.com/1KoC8CDdxA
– Verasity (@verasitytech) July 23, 2021
Adding NFTs to the proof-of-view protocol has the potential to bring a new level of fraud prevention to the popular sector and bring new users to the Verasity platform.
Related: NFTs are a game changer for independent artists and musicians
Staking options reduce the circulating supply of VRA
A third factor that positively affects the price of VRA is the attractive staking rewards offered to users who tie their tokens to the protocol.
Verasity offers more than just great #staking rewards. Verasity offers publishers and advertisers an innovative solution to avoid fraud and fake views. Verasity has large-scale partnerships with names like #HUYA and #RiotGames with @ EsFightClub.https: //t.co/pvLtbhfCUy pic.twitter.com/c7OByhexCV
– Verasity (@verasitytech) July 31, 2021
Staking tokens on the network is a benefit to the protocol as they are used as part of the consensus mechanism that helps the network function properly. Similar to most staking platforms, stakers receive rewards in exchange for removing tokens from the circulating supply.
VRA holders can currently get a daily return of 0.07% which equates to an annual return of 25.55% when using their tokens on the network. The current reward capacity is 2,500,000,000 VRA or 24% of the total circulating supply.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk and you should do your own research when making a decision.