Evolve will pair Dash against the USD, according to their blog post announcing the integration. Evolve Markets allows traders to leverage up to 50:1 of their cryptocurrency accounts at very low fees and provides very fast withdraws. Evolve Markets also feature advanced security measures such as “securing all incoming Bitcoin deposits in cold storage, never exposing its private keys to the internet, and reviewing/processing all Bitcoin withdrawals manually”, as well as data encryption and Google Authenticator for extra withdraw security. They attribute their advantages over other trading platforms due to their proprietary algorithms and operation on the Metatrader 5 platform.
Evolve Markets was founded in late 2016 by early cryptocurrency adopters and financial veterans. The platform provides an expansion opportunity for traditional traders since the platform also offers traditional fiat, commodity, and index trading. In addition to Dash, the platform currently offers trading in Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Zcash, Monero, Ripple, and EOS.
Increasing the robustness of Dash
The fact that Dash is joining Evolve Markets and other cryptocurrency exchanges shows that trader demand for Dash is contentiously growing despite its exclusion from mainstream cryptocurrency outlets like Coinbase. Larger trading demand for Dash provides more volume to the Dash network, which in turn, helps Dash’s price discovery. This smooths out Dash’s volatility since market makers are constantly assessing the underlying and future value of Dash. In addition, trading platforms also allow merchants to more easily diversify, which further encourages larger Dash adoption and decreases Dash’s exchange price volatility since the usage and velocity of Dash increases.
However, as Dash Force News previously covered, leveraged trading is not always ideal since the margin market could become larger than the actual cryptocurrency market and incentivize manipulation of the underlying market. A hedge against this potential manipulation is properly structured incentives and strong merchant and consumer adoption. The more real world use cases and everyday transactions that cryptocurrency experiences, the less of an effect that leveraged trades can have on the entire network. This highlights how Dash has focused on merchant and consumer adoption in addition to regular code improvements to make Dash usable in everyday transactions by average consumers.
Dash expands usage on multiple fronts
The Dash community has focused on expanding Dash in multiple areas to increases overall adoption, whether that includes exchanges, trading platforms, physical or online merchant adoption, ATMs, or consumer adoption. This strategy allows Dash to diversify so its vested parties are not too concentrated in one economic sector and thus have perverse incentives to develop and/or influence the coin in a certain way. The incentives built into Dash’s DAO have focused development on the original goal of cryptocurrency to be a peer-to-peer digital currency for the average consumer through consistently low transaction fees, fast confirmation times, security, and user friendly interfaces.
Dash transactions have been on the rise for overall use, which plays a key role in assessing the underlying value of Dash. When evaluated on actual use, Dash ranks very high because of how many merchants accept Dash and how often it is used by consumers for everyday purchases. This not only encourages increasing platform adoption, but also aids in smoothing volatility since traders are better able to separate current use from speculative future use. As a result, this encourages more user and merchant adoption since they can have greater confidence in the reliability of Dash, which then begins a virtuous circle reinforcing the stability and adoption of Dash.