Last Friday, the price of Grin, the coin fuelling the MimbleWimble ecosystem was $4.15 and increased by over 217% through the weekend. On Monday, the cryptocurrency started trading at $13.17.
Why the Sudden Price Rise?
The price increase is quite dazzling to observers in the crypto space who have seen major price drops in the price of major cryptocurrencies these past days. Those in the crypto space have different opinions on the positive change in the price of the Grin coin. Some are theorizing that it is simply a pump and dump of the relatively new coin. Others are pointing out that since the coin was listed on the crypto data analysis website, CoinMarketCap and also on one of the major digital asset exchanges, KuCoin, there was bound to be a price increase.
One poster on Reddit, however, spoke about the price rise of Grin coin relative to other new coins. He said that the trend seen in Grin coin currently is a frequent happening in the charts of new coins that are being mined.
Grin coin was also listed on Hotbit exchange, on which it got its highest trading volume. The total volume of Grin coin traded on Saturday, January 26th was about $9.2 million. The massive price increase in the privacy coin in a short period has been attributed to a smooth build in the price of the coin after Grin’s price slumped immediately after its launch. The price dip was surprising to many who felt that the coin was worth more than the price it was trading at, a 98% down from its launch price. From the price dip, Grin has been up to over 300%.
What’s the Deal with Grin?
Grin coin is one of the newly launched applications of the MimbleWimble protocol. The other launched application of the protocol is Beam. The MimbleWimble protocol is a style of creating a very private blockchain that is very competent when it comes to its storing magnitude. A MimbleWimble blockchain is quite different from the traditional blockchain in the sense that it doesn’t make use of public addresses for its transactions.
Grin has generated a lot of attention in the crypto space particularly because of the electricity needed to mine the digital currency. It has surpassed Ethereum Classic’s mining power as of this period in time.