Whats going on with the price of steem and is its downwards trend likely to end .
I logged onto steemit this afternoon to find out another 5th has disappeared off the value of my wallet contents. Seems every day the value is slowly vanishing . I then looked on the market to find for the first time absolutely no one is buying steem and many are dumping it as fast as they can. This seems to becoming a trend that i m not certain is going to change any time soon . Is the dream of steemit just a fantasy ? I hope not as i love steemit but for how long can the price just keep dropping and dropping ? and is it still considered a good investment for the future ?
It went up too fast in July - it was a pump and it is inevitable that the price should fall back.
IMO we'll need some "news" to bump the price back up. Perhaps we might surpass bitcoin in the number of transactions per 24 hour period, that should get the attention of everyone.
Monero will surpass Steem before that happens
There appears to be two things which are hitting STEEM at the same time. Based upon the metrics, it would appear that disillusioned minnows are either not participating or are abandoning the site faster than new accounts are generated (churn). I wrote an article about it and two proposed solutions https://steemit.com/steemit/@lpfaust/an-open-letter-to-the-steemit-powers-that-be
The other issue is the drop in the value of STEEM. There was a really solid fundamental analysis by @hisnameisollie which explains why the drop is happening and he termed it the Push Pull effect https://steemit.com/steem-help/@hisnameisolllie/the-push-and-pull-effect-of-steem-power-incentives-why-the-of-steem-held-in-steem-power-will-tend-to-90-overtime
Hope those two article s provide some answers.
The coin supply is expanding by 1 million coins every couple days.
Inflation