Flow taps into the potential of a rather new and lucrative blockchain sector – the market of non-fungible tokens (NFTs). Flow launched in 2020 and was developed by the same dev team that created the popular blockchain game CryptoKitties. Launched as a decentralized application (Dapp) on the Ethereum blockchain in November 2017, CryptoKitties promptly became one of the most popular blockchain games on the market where users could breed, collect, buy and sell digital cats. These digital cats represented tradable assets and quickly found success. Unfortunately, the Ethereum network couldn’t scale to support a great number of users so the Dapp started to experience problems.

To solve the problem of scaling, the game developers decided to create their own blockchain network, and Flow (FLOW) was born. FLOW is the native cryptocurrency of the Flow network, which is designed for hosting NFT marketplaces and crypto games.

Despite only being on the market for a relatively short space of time, FLOW has already experienced some significant price movements and if you want to know why then you’re in the right place. We’ve compiled everything you need in order to get a better understanding of the intricacies of Flow price – and the factors that influence it.

Flow Price History

Although the Flow network was launched in 2020, its native token wasn’t created until the following year, so wasn’t affected by 2020’s market trends. FLOW started trading on the live cryptocurrency market on January 27 2021 at its ICO (initial coin offering) price and all-time low (ATL) of $0.38. Prices rose as high as $12, however, during the first day before closing at $7.39.

The year 2021 started on a bullish note for most cryptocurrencies, providing the right conditions for an upward surge with occasional dips. By the end of January, FLOW was worth $9.74, representing gains of almost 2,500% from its starting price. 

In February, FLOW recorded new highs, promptly reaching $12 again before pushing past $20 in the second half of the month. This positive momentum continued in March, sending the price of Flow even higher despite the fact that many other cryptos experienced moderate to major losses in March 2021.

Flow reached a new high above $40 in March. After a more than 30% pullback, there was a rally at the end of March which continued into the start of April, when Flow reached an all-time high (ATH) at the value of $42.95. Following its ATH, FLOW retraced and briefly dipped below $25, before ending the month at the price of $31.12 – a 28% drop from its peak value. 

Analyzing Flow Price History

The price of Flow (FLOW) went from trading at its lowest value of $0.38 to its highest price of $42.95 in a rather brief period of little more than two months, which testifies to the high volatility that seems to be omnipresent in the crypto market. 

Flow price can be analyzed with the same techniques used to examine traditional markets, one of which is technical analysis (TA). TA examines price charts and relevant market data such as trend reversals, price patterns, overall trends, and historical prices to make sense of Flow momentum. It can be used to create forecasts for the future price movement of Flow and other cryptos and as such is one of the main market analysis tools.

In combination with TA, traders and investors can use sentiment analysis and fundamental analysis to evaluate FLOW and other cryptos. Fundamental analysis examines important events and factors like the dev team activity, the value of technology, use cases of Flow, the functionality of the network, upgrades and updates, partnerships and integrations, as well as adoption and mainstream use of FLOW.

Dapper Labs is focused on the consumer space, suggesting there could be much demand for FLOW and use of the Flow network. Fundamental analysis also considers total supply to be one of the factors that may define and influence the price of FLOW, as cryptos usually have a limited total supply following the model of Bitcoin’s anti-inflation mechanism. 1.25 billion FLOW were created at genesis with a capped inflation rate that decreases as network fees increase. This incentivizes network participation while protecting FLOW from overdilution.

Sentiment analysis considers opinion data in analytics, ranking the overall sentiment in the market as neutral, negative or positive. News, events and collective market trends, hype, and bullish or bearish momentum can influence the sentiment among traders, consequently affecting Flow price. Flow price predictions can be formed with the help of sentiment analysis, although this technique is not the most reliable when used alone.  

Factors Influencing the Price of Flow

A multitude of factors can influence the price of Flow, contributing to the constant variation in its value and frequent trend reversals. Digital assets in the crypto market are more volatile than fiat currencies and other tradable assets in traditional financial markets.

The way that Dapper Labs’ Flow network operates and the use cases of Flow are some of the main factors that can influence Flow price. FLOW is used by developers and validators. It is also used to cover transaction fees, to send and receive monetary value in the form of FLOW tokens, and will be used in the future governance of the network. FLOW can additionally be used as collateral for the creation of other tokens that are hosted on the Flow network.

Other specific factors that can affect Flow price are important news and events as well as the overall value of Flow technology. The token economics  of Flow are focused on building a sustainable foundation for a new economic model within the Dapper Labs Flow network, which increases the value of the token itself. The more NFTs are hosted on the network, the higher the demand is for FLOW as the underlying token of the blockchain. The minimal inflation rate, distribution model, and a wide variety of use cases are what define the technical value of Flow, which in part determines the market price. Flow price can also follow wider economic trends, as was the case with its bullish momentum in early 2021 when the majority of cryptos were rebounding to new highs.

Flow is still a relatively new token but has already shown some promise with its impressively quick price increase.

Live Flow Value and Market Cap

The live price of Flow (FLOW) is in constant flux and may change from one moment to the next, rising or dipping by a significant percentage. The market cap is calculated by multiplying the current price of FLOW with the circulating supply of FLOW coins. The market cap determines the rank and market dominance compared with other cryptos.

Trading volume provides an insight into the buying and selling activity, while the live Flow price is determined by the balance between the buying and selling of Flow coins.

Flow Price FAQ

What is Flow (FLOW) used for?

Flow coin is a part of a broad ecosystem of NFTs and similar collectible tokens. FLOW is used as collateral for secondary tokens on the network, for sending and receiving monetary value, paying for transfer fees and is also used by developers for smart contract functions and Dapps.

Conclusion

Flow (FLOW) might be a new crypto in the market, but it appears to be promising with various strong use cases and a great potential in the sector of NFTs and digital collectibles. In addition to creating an ecosystem that could support various Dapps, NFTs, and tokens, Flow is capable of scaling without the use of sharding, which could potentially propel its native cryptocurrency FLOW to new heights.

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 Flow and cryptocurrencies!