Qtum (QTUM) is an open-source public blockchain platform that aims to combine the benefits of both Bitcoin and Ethereum. The protocol leverages the security of Bitcoin’s UTXO transaction model while enabling multiple virtual machines, including the Ethereum Virtual Machine (EVM). The Qtum blockchain uses a proof-of-stake (PoS) consensus mechanism and has pioneered a Decentralized Governance Protocol (DGP) system which allows specific settings to be modified through smart contracts. Qtum’s aim is to enable companies to create decentralized applications (dApps) that can integrate with existing ecosystems including mobile devices.

The blockchain’s utility token QTUM is used by businesses and developers to access services on the platform and is required to pay gas (transaction) fees. Its price has been through some major changes since its launch in 2017, and if you want to know why then you’re in the right place. We’ve compiled everything you need to know about QTUM price – as well as the factors which influence it.

Qtum Price History

QTUM hit the crypto market in May of 2017 trading at around $6.70. It had a volatile start, falling to just over $4 within a couple of days before reaching $16.61 only a month later. Prices dipped to below $4 in July again, before climbing to about $19.50 by the end of August – when Qtum’s market cap exceeded $1 billion for the first time. QTUM soon fell to less than half that value and mostly traded in the $8 to $14 range for the next three months. The first major surge for QTUM came in December when its price increased by 410% in one week to peak at around $70. After a pullback the uptrend resumed and QTUM finished 2017 with a value of $60.12, representing gains of almost 800% since launch.

The rally wasn’t over though, and in the first week of 2018, QTUM surged to its all-time high of $89.54 with a market cap of over $6.6 billion. This was followed by a crash and 10 days later prices had fallen by about 70% to dip below $30. The rest of the year saw further declines and by the end of 2018 QTUM was worth just $2.12 – a more than 96% loss since the start of the year.

The first half of 2019 was more optimistic. After falling to $1.70 in February, the next few months saw an uptrend which culminated in a peak of $5.98 towards the end of June. This wasn’t sustained for long, and the rest of the year took a downward trajectory with QTUM closing 2019 lower than the year’s opening with a price of $1.61.

2020 began positively and QTUM had broken $3 by the middle of February. Prices subsequently fell to a low of $0.71 following a crash of more than 46% in a single day in March. The next five months showed an upward trajectory with QTUM peaking at $5.47 in August. After a sharp retracement, the coin was worth less than half of that around the start of September, and QTUM consolidated for the rest of the year, ending 2020 with a value of $2.22.

In 2021, QTUM saw renewed growth. Its price had quadrupled by the middle of February and continued climbing until it reached a high of over $21 on 19 April. This represented year-to-date gains of almost 850% but prices halved over the next few days.

Analyzing Qtum Price History

QTUM’s 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 QTUM, 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. Qtum managed to raise $15 million during its initial coin offering and the team brings together experience from Bitcoin, Ethereum, NASDAQ, and Alibaba – which could suggest strong fundamentals for the company.

Broader market trends have also played a role in QTUM’s price history. Its surges at the end of 2017 and the 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.

QTUM’s huge single-day drop in March 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 overall price trend of QTUM 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 Qtum (QTUM)

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

QTUM was launched with an initial supply of 100 million coins and an annual inflation rate of 1%. The number of new tokens issued per block halves every four years until QTUM reaches a max supply of 107,822,406 coins in 2045. As the inflation rate is conservative and QTUM is already fairly close to being fully diluted, the future growth of supply is unlikely to have a significant effect on QTUM’s price. As such, any meaningful change in demand for QTUM will likely impact the token’s price.

As QTUM is required for paying gas fees when using the platform’s smart contracts, a major source of demand for the coin will be from developers and businesses building on Qtum. Thus, the value of QTUM is likely to increase directly in line with the level of adoption the blockchain sees and the number of decentralized applications built upon it.

Another source for QTUM demand is the staking rewards it offers. Anyone can stake their QTUM to earn a share of block rewards, transaction fees from QTUM transactions, and gas fees from smart contracts. These rewards could encourage more people to buy QTUM for staking, and while it is staked, that QTUM is effectively removed from the circulating supply.

Live Qtum Value and Market Cap

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

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

Qtum Price FAQ

How is the price of QTUM calculated?

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

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

QTUM’s price is based purely on trading as there is no standard global QTUM 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 QTUM 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 QTUM. However, if the number of businesses building dapps on Qtum’s platform increases in the future, it’s likely that the price of QTUM will also rise.

Conclusion

The price of QTUM has seen some major changes, from being worth less than $7 shortly after its launch to reaching an all-time high of almost $90 in 2018. The price history of the coin hasn’t been smooth as QTUM’s volatility has led to plenty of surges and crashes.

Many different factors have played a role in determining the price of QTUM, including the number of applications being built on the platform, demand for staking rewards, 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 Qtum and cryptocurrencies!