ETH-based altcoin Ampleforth AMPL surged by 5000% over the past month as we are reading more in the latest altcoin news today.
From the price perspective, the best-performing crypto assets of the past two months were Chainlink’s LINK, Cardano’s ADA, and Synthetix Network Token but Ampleforth AMPL is now officially the best-performing crypto asset. If you look at the market data this could not seem clear as the asset increased by about 100 percent in the past month showing strong performance but still falling short of the parabolic gains seen in other cryptocurrencies. If you look at the market capitalization of the coin, it increased by 5000 in the past 30 days.
— Amber Group (@ambergroup_io) July 22, 2020
Ampleforth is not an average stablecoin as its protocol uses a rebasing system that changes the circulating supply every day in both directions to try and stabilize the price around the dollar, as per the website’s explanations:
“The AMPL protocol automatically adjusts supply in response to demand. When price is high, wallet balances increase. When price is low, wallet balances decrease.”
There’s no US dollars or other assets that are backing the coin which is why the cryptocurrency saw huge deviations from its dollar peg while the demand got huge volatility during the recent altcoin craze. With the strong demand over the past few weeks, AMPL’s market cap exploded higher and at recent heights, the altcoin traded at $4.00 with its market cap reaching $400 million. What’s impressive about these numbers is not the fact that AMPL was trading hands for the 300 percent above the peg while the market cap of the cryptocurrency increased to about 5000 percent in the past month.
Due to Ampleforth’s rebasing system, it means that everyone that bought AMPL a month ago got a 5000% return on their investment. Some even believe that the asset has plenty of room to go up. Amber Group, the cryptocurrency finance firm said:
“Staggering resilience in $AMPL. If prices remain at current levels with the current rate of supply expansion –> top 10 market cap in ~2 weeks time, top 3 in ~3 weeks time.”
Qiao Wang also commented:
“Not sure what to make of AMPL. Think December 31st 2020 it will either surpass Bitcoin by marketcap or go to zero. Either way it will be remembered as one of the craziest experiments in DeFi aka Degen Finance.”
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