Finally, Hive Has Passed Steem! What Really Happened?

_{Charts by TradingView}

After nearly overtaking Steem several times, finally yesterday, Hive was actually able to reliably overtake Steem at a price of $0.62.

Then, even for a brief moment, HIVE reached a price of $0.87 and STEEM reached a price of $0.76.

What happened to HIVE? How did it manage to surpass Steem in such a convincing manner?

There are two very different things that could have caused Hive's price to surpass Steem.

1. HBD Stablecoin

As you may know, since the last hard fork of the Hive blockchain, HBD has officially become a stablecoin, or more precisely, an algorithmic stablecoin.

HBD is pegged to a price of $1 USD using the following algorithm.

• If the price is less than $1, 1 HBD can be converted directly on the blockchain into HIVE worth of $1.
• If the price is greater than $1, then HIVE worth of $1 can be converted directly on the blockchain to 1 HBD.

Recently, along with the bullish Bitcoin, the HBD price has been rising. As a result, people are flocking to convert HIVE to HBD, use it to buy HIVE again, and convert it to HBD again, and so on.

And this has put selling pressure on HBD, pushing the price back to $1. On the other hand, this puts buying pressure on HIVE, pushing the price up.

In addition, there are rumors that stablecoins will be regulated, and investors who do not like regulation will turn to decentralized stablecoins. Eventually, some of them allegedly moved to HBD, which is truly decentralized.

2. HIVE Blockchain Technologies

I don't mean the Hive coin blockchain, but HIVE Blockchain Technologies Ltd that is a well-known cryptocurrency mining company.

Yes, that's right, the name of this company is exactly the same as the name of Hive coin blockchain. However, they are two completely different entities. They have nothing to do with each other.

This company is one of the largest bitcoin mining companies in the world. It was already established before Hive coin. And it is already much more famous than Hive coin.

Because of the same name, investors are likely to think that this Hive coin is also part of HIVE Blockchain Technologies Ltd. So they are "wrongly" buying Hive coin which has nothing to do with it.

Whatever it is, the fact is that the price of HIVE has very convincingly outperformed STEEM. And up to now, Hive still maintains its leadership.

Will Hive continue to top Steem in the future? Or will Steem come back to take over the leadership?

Only time will tell. Let's see how it develops in the future.