The Succinct price went parabolic today, August 6, becoming one of the best-performing cryptocurrencies. PROVE, its token, jumped to a high of $1.6043 and then pared back some of those gains to the current $1.1150.
Why Succinct Price Surge
Succinct is a new crypto project that leverages zero-knowledge (zk) technology to help developers create applications that focus on privacy. It is a competitor to Midnight, the blockchain sidechain created by Cardano’s developers.
The price of Succinct went vertical after the developers launched the Prover Network mainnet. This operates as a two-sided marketplace where applications submit proof requests and independent provers compete to fulfil them. The end goal is to help these creators build trustless applications without custom infrastructure.
The PROVE price jumped as the developers launched The Prover Network on the mainnet. It also soared after being listed by some of the top crypto exchanges, including Binance, Gate, Upbit, and MEXC.
According to CoinGecko, the majority of trading activity occurred on Binance, Upbit, and Gate. Hyperliquid, the giant player in the perpetual trading industry, also listed it.
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What Next for the PROVE Price?
The Succinct price surged after the mainnet launch and the eventual listing by the biggest crypto exchanges. This surge brought its market capitalization to over $220 million and its daily volume to over $1.1 billion.
However, there is a risk that the PROVE price rally will be short-lived. It is common for cryptocurrencies to surge after an airdrop or token-generation event and then plunge as the hype fades.
A good example of this is Pi Network, which went public in February and then surged to nearly $3. Today, the Pi crypto price has crashed by over 80% from its all-time high.
Another example of this is Internet Computer (ICP), whose token initially surged to $750 after its launch in 2021. Today, the ICP price has crashed to $5.1.
The other potential risk for the Succinct price is that it will have more supply in the future. It has a supply cap of 1 billion PROVE tokens, much higher than the current circulating supply of 195 million.
Most importantly, Succinct is a more complicated crypto project, as many retail traders don’t know what it is and what it does.
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