Numeraire describes itself as the hardest data science tournament on the planet. With the aim of bringing decentralization to the data science field, Numerai provides an Ethereum-based platform where developers can experiment and build models that apply machine learning to predict the stock market. Numerai’s goal is to build the world’s last hedge fund and developers can stake on their models to earn cryptocurrency.

The Numeraire (NMR) token is the first cryptocurrency to be released by a hedge fund and is used to reward data scientists whose models perform well in the tournament. Throughout its history, the price of NMR has seen significant change, and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of Numeraire price – as well as the factors which influence it.

Numeraire Price History

Numeraire (NMR) hit the markets in June 2017 and surged immediately, hitting its all-time high of $168.15 on 25 June. Its price quickly fell back to $35 at the end of the month, and fell further to $17 in July, before some bullish spurts of growth took prices back to $35 at the end of August. Numeraire then declined for the next couple of months, reaching a low of under $9 in November. Prices rallied for the rest of the year and by the end of 2017 NMR had regained $33.

The surge continued into January 2018, when Numeraire reached a peak of almost $60. Prices swiftly crashed back down to $12 a month later, and despite an attempt to rally that took NMR up to $40 in March, it took a downward trajectory for the rest of the year. After setting a series of lower highs and lower lows, Numeraire finished 2018 with a value of $2.30 – a loss of 96% since its January peak.

The trend reversed at the start of 2019 and Numeraire made steady gains until it reached a high of over $12 in April. After a month of sideways movement, prices began to slump again until they dipped below $3.50 in October. The rest of the year saw prices improve to more than $6, an almost 3x return since the start of 2019.

Numeraire experienced little change in price for the first month and a half of 2020. There was a sudden spurt of growth to about $12 in February, followed by a low of under $4 after a 34% crash on a single day in March. Renewed bullish momentum then took NMR up to a peak of over $46 in May, and after three months of consolidation, another surge saw Numeraire hit a high of $68 towards the end of August. Prices mostly declined for the rest of the year, and by the end of 2020, Numeraire was trading at about $22 – a 250% improvement since the start of the year.

Numeraire began to rally once more in 2021, climbing to a peak of $91.49 in April. By that point Numeraire had a market cap of about $450 million. After falling back to $53 later in the month, another surge carried NMR up to $96 in May. A couple of days later, a crash of 35% on a single day saw Numeraire trade as low as $38.

Analyzing Numeraire Price History

Numeraire (NMR) price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves using various indicators while studying price charts in order to make sense of previous price movements. With NMR, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges.

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. Numerai founder Richard Craib has been one of Forbes 30 Under 30 and the project was backed by Union Square Ventures, the co-founder of Renaissance, and the co-founder of Coinbase. Numerai has also created one of the largest global data science tournaments. These could be good signs for the project’s fundamentals.

Broader market trends have also played a role in the price history of Numeraire. Its surges at the end of 2017 and start of 2021 weren’t unique – the entire crypto market pumped around these times. Bitcoin was in the midst of major bull runs then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

The huge single-day drop in March 2020 that Numeraire experienced came as economies and borders were closing down around the world in response to the COVID-19 pandemic. The effect of this was felt by the whole cryptocurrency sector and the entire stock market, which experienced the biggest single-day crash since 1987.

The sudden Numeraire crash in May 2021 was also market-wide, affecting every single major cryptocurrency. Various contributing factors have been suggested, including comments made by Elon Musk, a crackdown by Chinese authorities, liquidations, and a healthy market correction.

The overall price trend of Numeraire tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Numeraire (NMR)

A variety of different things can affect the price of NMR, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency and global economies.

Numeraire was initially launched with a maximum supply of 21 million NMR, but in 2018, 10 million NMR were burned to make the project more decentralized. The token now has a capped maximum supply of 11 million NMR, making it a scarce asset, like Bitcoin. NMR tokens are also burned on a weekly basis as tournament entrants who don’t win, lose their stake in the competition. This makes Numeraire deflationary and puts upward pressure on its price in the long term, potentially making it a good store of value.

The main use case of Numeraire is in Numerai’s data science tournament. Demand for the token will therefore come from data scientists who compete as they can stake NMR on their models. NMR is then rewarded to the participants whose models perform well in the tournament.

These potential winnings could incentivize data scientists to buy and stake NMR to enter the tournament. The more people there are competing, the greater demand will be for Numeraire. The Numerai hedge fund also uses the models entered in the competition to trade on the stock market. Success and publicity for the hedge fund could encourage more people to enter the tournament and boost the price of NMR.

Live Numeraire Value and Market Cap

The live Numeraire (NMR) price varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given NMR’s volatility, its live price can change by a large amount in a very short space of time. The market cap of Numeraire is equal to the price of NMR multiplied by the number of NMR in the circulating supply.

Numeraire Price FAQ

How is the price of NMR calculated?

Numeraire price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying NMR than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of NMR different on different cryptocurrency exchanges?

NMR price is based purely on trading as there is no standard global Numeraire price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affects the price.

What will NMR be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of NMR. However, the success of the Numerai hedge fund and more data scientists entering the weekly tournament could drive demand for the token and therefore boost Numeraire price.

Conclusion

NMR price has seen a lot of change throughout its history, going from highs of almost $170 shortly after launch to lows of under $2 the following year. Its journey hasn’t been a smooth one as NMR’s volatility has led to plenty of surges and crashes along the way.

Many different factors have played a role in determining the price of NMR, including the number of people entering the weekly tournament, the success and publicity of the Numerai hedge fund, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Numeraire and cryptocurrencies!