What Is Chain (XCN) And Will Its Price Keep Going Up?

There are thousands of cryptocurrencies, tokens, and assets on the market today. Although not everyone is familiar with Chain, its XCN token has seen a near 85% price surge this week. Now is a good time to look into the project and figure out what may be driving its value higher. 

What Is Chain Exactly?

Although the name Chain is chosen well, it leaves much to the imagination. The project seems to focus on the Sequence cloud blockchain infrastructure enabling organizations to build better financial services. Additionally, it enables the digitization of securities, deposits, currencies, and bonds, creating an exciting entry into decentralized finance. Builders can access the features through an API, which also enables building around the Chain DAO. 

As a provider of cloud blockchain technology, Chain wants to establish cryptographic ledgers underpinning next-generation financial products and services. Chain has been around since 2014 and has secured over $40 million in funding. Moreover, Stellar acquired Chain in 2018 to build Interstellar, although both entities parted ways in 2020. 

More importantly, Chain operates under a DAO, responsible for launching the native staking and governance modules powered by XCN. Users staking XCN in the smart contract can deploy and vote on Chaim Improvement proposals, making XCN a governance token. However, it has utility through staking, for which users can claim rewards through a decentralized application. 

XCN Price Pumps Hard

The big talk this week is how Chain’s XCN token saw its value increase by roughly 85%. While all other markets have shown signs of recovery, very few assets yield any significant gains. XCN is an outlier in this regard and currently maintains a value of over $0.18. Moreover, Chain’s native asset has a market cap of over $3.1 billion, with a fully diluted valuation of $12.6 billion. 

Considering the token was valued just below $0.1 a week ago, it makes one wonder why there is such strong demand. Using XCN in staking and governance can prove appealing, although those who chase quick profits will have other ideas. The recent price uptrend seems rather solid, too, as the price has not dipped below $0.167 since. 

Why Is XCN Going Up?

That is a good question. The official Chain blog makes no specific mentions besides naming Mike Herron the new Chief Marketing Officer. Getting the right people in these crucial positions can bring much more exposure to a project, although it will not necessarily drive value to XCN. That said, staking and governance are still relatively new and seem to offer appealing benefits to those passionate about this project. 

The recent April update by the Chain team contains some juicy information. A partnership with Alameda Research is always beneficial and can drive long-term ecosystem growth. Additionally, the team discussed its roadmap in an AMA with Huobi Global, including trustless bridging of digital assets and bringing XCN to additional chains without changing the token supply. 

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