Flare (FLR) has recently suffered a 4. Cutting the value of its stock by 25%, and at the time of writing this paper the price is at $0. 01518. Currently, Flare is among the 79th digital currencies by market cap and the market capitalization of Flare is now $705. 48 million, similar to the lowering of the total number of infections in Michigan for the last 24hours. This downturn presents questions to Flare constituents as to the causes of this recent burst in performance and what such a future might imply for investors.

A distinguishing feature of Flare’s market activity is a sharp decline in the turnover of products. The purchases and sales frequency has been down by 14 per cent in the last 24 hours. 337 billion of their clientele’s revenue from card not present transactions, 03% or approximately $3. 22 million. As it can be noted, the volume-to-market cap ratio is only 0. Thus, it has been considered as relatively low turnover ratio below average of 46%.

This is an indication that there is low market activity, a factor which prevents higher rates of trading and compels investors to reduce their activity in the markets, resulting in a low trading volume which could lead to a decline in prices. It is also found that while lower volume of trading takes place, the price tends to be more volatile since the prices tend to move up or down as a result of even a small number of shares trading.

The current circulation supply of Flare is 46,460,964,200 FLR which makes it a significant part of total Flare supply which is 102,492,735,745 FLR. Most of the tokens are already in circulation, meaning that if demand for FLR is not adequate, this may bring about worries with inflation. Also, with no upper bound on the new supply of FLR tokens in the base sense, there is also no definitive limit to the total number of tokens that could exist, which also created more volatility to the market.

An example, Flare’s fully diluted market cap stands at $1. 56 billion, see how our market cap if the entire total supply of 100 billion was floating around. This figure also shows that with more tokens the market capitalization could easily expand even further. The big gap observed between the current value and the value when all tokens are included, suggests that the possibility of further dilution effects when the remaining tokens get sold in the market without companionship of demand is very high.

There could be several reasons for Flare’s recent drop in valuation Some of them are as follows: More often, changes in price of cryptocurrencies depend on other market flares and macroeconomic aspects. The market volatility has been rising and Flare like all other tokens in the market is also not immune from such volatility. Any change of mood in the investors, new decisions in the legislative area or just the overall fluctuations of the market also affect the price decreases.

There is also incumbency cost factors that may affect the performance of Flare regarding its projects. Being a blockchain platform with the goal of providing Smart Contract functionality across multiple networks, this is a threat because prolonged time, technological problems or competitive pressures can erode investor confidence. The decrease in trading volumes within the recent days could also be attributed by low interest or uncertainty about the project in the short-run.

For this reason, the overly high CS/TS ratio indicates that fluctuations in market factors should have a tangible influence on the price level. Most of the tokens are in circulation, and thus, any changes in the market including new developments or news can have a huge impact on FLR.

In conclusion, the current and succeeding financiaments of Flare are, in sum, a recent four. In short, reduction of up to 25% is probably the result of both general factors affecting the market and peculiarities of particular projects. Specifically, the decreasing number of transactions and massive supply may create issues regarding the liquidity and sentiment of the market. There are market factors that one has to consider besides following the progress of projects that will help investors manage their expectations and the volatility of Flare’s price in the future. Although the lower position in the current rating is quite logical, it may also be a good chance for the audience who has faith in the platform’s future growth and applicability of Flare.