It seems that this year’s crypto market has run out of stories. As the prices of Bitcoin and Ethereum continue to fluctuate, the market seems to have returned to what it used to be in 2018. The difference between today’s market and what it was in 2018 is that the Fed, determined to turn off the faucet, has been pushing hard to raise interest rates. According to the data released by U.S. authorities in September, the numbers have indeed started to fall, but the prices of goods remain at a high level, and the general public still suffers from stagflation.

There has never been a shortage of macro-level analyses of the crypto market, and many folks predict that the current bear market will last until 2024 or 2025. Of course, we can still profit from the market during the period. In the crypto market, supply reduction is always a predictable cycle. It drives growth in a bull market and facilitates recovery in a bear market.

In 2023, DASH will once again cut its supply. Many investors have started preparing for the supply reduction because, on the one hand, reduced supply will drive up the DASH price within the short term, and, on the other hand, the market desperately needs new stories.

DASH was issued in January 2014, with a total supply of 18.90 million. At its peak, the coin ranked as one of the top 20 cryptos in the market. DASH, together with XMR and ZEC, used to be the three major anonymous coins. According to CoinEx’s ranking, DASH now ranks 74th among all cryptos. Additionally, DASH’s issuance rate is cut by about 7.14% every 210,240 blocks (about 383.25 days).

Miners are probably the group that’s most concerned with supply reduction, and their top concerns include the impact of supply reduction on hashing difficulty and crypto price.

According to public data, the DASH hashrate peaked in August 2020 and then plummeted by 22.52% the following day. Subsequently, in late June 2021, the figure plunged by nearly 50% in 24 hours. After the bear market started, the DASH hashrate dropped further. The most recent three supply reductions, which took place on April 28, 2020, May 16, 2021, and June 30, 2022, seem to have failed to influence the DASH hashrate in meaningful ways.

ViaBTC records 10 models of DASH mining machines in the current market, of which only StrongU U6 and FusionSilicon X7 yield profits, though the daily rate of return is less than 50%.

Apart from that, the mining difficulty of DASH, which affects the mining revenue, has also plummeted since the bear market kicked off. Next, let’s turn to the impact of DASH’s supply reductions on its network difficulty over the past three years. On April 28, 2020, DASH reduced its supply, and the mining difficulty soared; prior to the reduction on May 16, 2021, the mining difficulty went up; on June 30, 2022, DASH announced another supply reduction, but according to the statistics, the mining difficulty wasn’t much affected.

In light of the market background, the supply reductions in 2020 and 2022 both happened under bearish conditions; though the 2021 supply reduction happened in a bull market, the bull was at an early stage, so the mining difficulty wasn’t much affected.

Let’s now look at the DASH price. Generally speaking, supply reduction is one of the best stories a project can tell. As each reduction is predictable, the DASH price fluctuates before each cut, but, as mentioned earlier, a supply reduction cannot directly drive up the price, and whether the price can rise and the extent of such a price growth depend on the crypto’s global liquidity.

Despite that, according to CoinEx, the DASH price edged up before the 2020 supply reduction. In 2021, the bullish market condition and the supply reduction doubled the DASH price. However, by 2022, the figure dropped slightly during the supply reduction.

It should be noted that strictly speaking, DASH has more than one consensus mechanism: It maintains the network through PoW and also introduced PoS. Once you become a main node after staking 1,000 DASH, you’ll be able to send transactions via InstantSend or PrivateSend. Some say that InstantSend is done through a transaction locking command within a wallet or client that displays an intention to lock funds from a specific input to a specific output.

The PrivateSend function is more like a coin mixer. When a user sends assets, PrivateSend mixes the assets to be sent in a random order so as to hide the original address. That said, in a world where centralized corporations and institutions dominate the vast majority of resources, privacy coins face tough challenges. This year, coin mixer Tornado Cash was also sanctioned by the United States. As a result, its source code was deleted, and some of the Tornado developers were arrested.



That said, compared with other altcoins, DASH, born in 2014, offers more extensive application scenarios. Plus, the DASH team said that its vision is to become a cryptocurrency for payments, instead of privacy. Finally, in the market that lacks “stories”, we might as well wait for issuance reduction, which happens every year. Go to the ViaBTC website for more details about DASH mining: https://www.viabtc.com/tools/miner?lang=en_US

Disclaimer: This article offers no investment advice, and all statistics mentioned herein are for reference only. The information provided herein may not be relied upon for investment decisions, for which you will be fully liable.