Here’s Why Ardor (ARDR) Is Gaining So Much Strength Right Now

Back at the start of November, Ardor (ARDR) was trading for a less than $0.20 a piece. This week, the coin is riding high at $1.70 and looks set to run further into the end of the year. Exactly how far the current run can take it remains to be seen but – if we look at the more traditional metrics – it could be substantially so. Volume over the last twenty-four hours came in at more than $33 million ARDR changing hands, against a market cap of $1.6 billion. This is more than 25 times the average daily volume seen throughout September and November this year.

ARDR Daily Chart

We think this influx of interest is a sign of strength and one that justifies a trader or investor keeping an eye for any short-term corrections and – in turn – jumping on said corrections as a potential entry opportunity in advance of a long-term return to the overarching upside momentum.

What have we got to support this statement?

Well, for anyone new to this one, Ardor is a blockchain-as-a-service platform that will allow people to utilize the blockchain technology of another cryptocurrency, NXT, through the use of child chains. This seems a bit jargony right off the bat but it’s actually pretty simple. NXT was initially billed as the next big thing and the technology that underpins it (i.e. its blockchain and the protocol built into said chain) is incredibly smart and smooth running. Only a handful of heavy-hitting holders took part in the ICO, however, and this led to some criticism around security issues for anyone that wanted to take advantage of NXT.

When these concerns arose, NEM was born out of the same chain, and has since become incredibly successful. It’s basically the same but with a more even distribution of tokens.

What does this have to do with Ardor?

Ardor is basically NXT 2.0. It’s based on NXT but it leverages child chain technology, meaning users can take advantage of the technology that underpins NXT but they don’t have to expose themselves to the centralized holding nature of the blockchain to which they are linking via side chains.

What all this means, then, is that blockchain as a service (i.e. the concept that NXT was originally set up to spearhead) is a real possibility through Ardor.

The reason that this one is gaining so much attention right now is that there was just a successful hard fork of the NXT chain and, alongside this fork, an airdrop of what’s called IGNIS to holders.

Based on this fork and airdrop, buyers are rushing in to pick up an exposure to the fork and that’s what’s pushing up the price of ARDR at the moment.

So where do things go from here?

The thing to recognize here is that this is just the beginning of what could be an incredible rush of adoption for the technology that underpins Ardor. NXT is brilliant but the original structure (i.e. the concentrated holdings) turned potential developers off to the platform. The ability to harness the power of NXT, however, through the Ardor side chains, means that NXT (and in turn ARDR) is free to grow unrestrained by market concerns surrounding concentration.

And as the platform grows in popularity, so will the value of the coins that underpin it.

Keep in mind that there’s a near-term correction risk, as outlined in the introduction to this piece. There’s likely a bunch of shorter-term operators in the markets right now that are poised to take profits on the run that’s come over the last few days and weeks and – when they sell out – price will likely take a hit.

This dip, however, could be a great opportunity to pick up some cheap coins.

We will be updating our subscribers as soon as we know more. For the latest on ARDR, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Ardor.