The crypto-asset, which is ranked 211th by market capitalization, experienced a price explosion of more than 360% last week.
A little-known crypto asset Bitcoin Standard Hashrate Token (BTCST)rallied to $75.23, up 368.43% from a weekly low of $16.06 last Thursday.
According to CoinGecko, the crypto asset has since lost some of its gains. The token, which fell more than 40 percent from its weekly high, reached as high as $ 42.26.
BTCST is a token backed by standard Bitcoin mining power. The aim of the project is to create a market for Bitcoin mining and increase liquidity so that traders and investors can profit from BTC mining without having to buy expensive BTC mining equipment.
The purpose of the crypto asset is stated in the Token’s White Paper:
“By standardizing and tokenizing mining power to BTCST and listing the token for exchange trading, we can bring FX-level liquidity to the mining power market while meeting traders’ need for mining exposure.”
Staking a BTCST token on-chain also allows holders to earn Bitcoin mining rewards. According to the project’s website, the total value locked in BTCST corresponds to $237.23 million distributed across 10,933 addresses.
According to Blockchain.com, the Bitcoin hash rate (a measure of the processing power of the Bitcoin network), impacted by China’s sweeping restrictions on Bitcoin miners in late June, has since seen a massive recovery.
This price increase in BTCST is thought to be due to the steady rise of Bitcoin price this week. According to CoinGecko, BTC is trading at $57,366 at the time of writing, an increase of about 16% it has experienced in the last seven days.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.