Lisk (LSK) holders are probably the most resilient investors in crypto. The project is down by over 88% this year. Lisk woes can be attributed to the overall decline in the crypto market, as well as the project itself, mainly the constant delays in achieving the project milestones.
However, things look like they are headed for a turn around. Today, the Lisk team has announced that the main net migration will happen on the 29th of this month. They have also announced the successful merging of more than 1000 pull requests. These developments seem to have excited the market enough to push the price up by over 20%.
Whether these gains are sustainable is another story all together. They have come at a time when the market is still bearish, with bitcoin dominance edging higher, and now at 53.5%. This high dominance in itself is a sign that investors are more inclined towards bitcoin (BTC), due to the increased uncertainty around altcoins. With many altcoins focused on competitive markets, there is uncertainty about their success. For instance, most altcoins focused on payments are in competition with bitcoin (BTC), and only the very best will make the cut.
Lisk on its part is focused on the smart contracts market, the same market that has Ethereum, Cardano, and several others like Zilliqa. The key selling point for Lisk is the use of side chains for scalability. But several other projects are also aiming to solve the scalability problem, including Ethereum, which makes the market quite competitive.
However, it’s still early days, since none of them has achieved success with these solutions at scale. As such, Lisk has a chance to compete in this market. The team just needs to be a little bit more aggressive in pushing the project in the market, as well as in meeting deadlines. Lisk has been in existence for several years now, and needs to move faster to stay ahead of the newer, highly competitive projects that have hit the market lately.
Other than the increased competition, another risk that Lisk faces, at least from a price perspective, is investor despair. After Lisk went quite for months, the price has taken an unproportionally higher beating than most of the major cryptos. This means that any gains the project makes may be sold off quickly as investors try to recover some of the losses they have made with this project over the last few months.
But on the bright side, these news are a sigh of relieve, at least in the short-term. It’s a welcome assurance that Lisk (LSK) as an investment will stabilize and not go to zero. If it continues to gain at the rate it has gained today, then it could rise to around $6 – $10 in the near-term.