Will Dash sustain its rapid growth in Q1 2023?

The cryptocurrency market reversed its downward trend in January 2023, giving hope to the crypto community and fueling speculation that new highs are around the corner. During the first month of the year, Bitcoin's price rose 39.7%, which was the biggest rise since October 2021 and the biggest January gain in a decade. The rally and a possible improvement in macroeconomic conditions have some investors hoping that crypto winter is nearly over.

As a result of Bitcoin's lead, other cryptocurrencies quickly caught on, bringing the total crypto market capitalization above $1 trillion on January 23, 2023, for the first time since September last year. Up to this point, it has not been successful in consolidating above the breakthrough.

Source: TradingView 

Dash, meanwhile, gained 43% in January and started its bull run ahead of the broader crypto market breakout.

How can this uninterrupted growth be explained? Let's check it out. 

Source: Messari.io 

Dash is a scalable alternative to Bitcoin that was forked from it in 2014. Its two-tiered structure helps to increase privacy and speed transactions. Dash's first layer, TIER1, is a peer-to-peer network of miners who add new blocks to the network. The TIER2 layer has masternodes and full network nodes that execute anonymous and instant transactions, as well as decentralized budgeting and management. It is known as the Proof of Service principle. 

Using innovations such as ChainLocks, Dash ensures that malicious parties cannot attack both the mining layer and the masternode layer.

Furthermore, Dash is the longest-running decentralized autonomous organization (DAO) with a history dating back to 2015. It built up a treasury financed by 10% of the block reward, which is a combination of network transaction fees and newly minted Dash that miners receive for securing the network. 

Recently, the Dash coin has seen an explosion in transaction volume, indicating buyers have taken long positions amid expectations of further gains. The transaction volume spiked by 125.73% within the last month, coming in at $14.06 million as of this writing.

Source: Messari.io 

The reason could be the impending mainnet release of Dash Platform, which is due to be released on the testnet soon. This Web3 technology stack allows developers to create decentralized applications by integrating architectural components such as Drive, a storage component for consensus-based data validation, and DAPI, a decentralized HTTP API that converts Dash's P2P network into a cloud-based system. In the platform's mainnet release, there will be a smart contracts virtual machine, inter-blockchain communication, support for fungible tokens and NFTs. 

There are 11,123,882 DASH coins in circulation. The total supply will be reached by the end of 2025. At the time of this writing, DASH has a market cap of $666 million and is trading at $59.99, up 134.55% from its cycle low.

It can be confirmed that an upward trend is underway by looking at the Accumulation/Distribution technical analysis indicator. A potential resistance level for DASH lies around $67.8, above which the cryptocurrency will likely achieve its next local high.

Source: TradingView 

DASH has beaten Bitcoin by 24.83% in three months, and by 18.35% in a single week.

Source: IntoTheBlock