(LSK) may come off as just another altcoin but it is a lot more than that. In fact, it is a smart contracts platform just like Ethereum
(ETH). However, it has not performed quite like Ethereum (ETH). In fact, it has had one of the worst corrections among all cryptocurrencies, having fallen 86% from its all time high. RSI is also down in the oversold range and its market valuation is far below $1 billion. Many investors would have found Lisk (LSK) undervalued even at a billion dollars valuation, given the cryptocurrency’s strong fundamentals and competent team.
Lisk (LSK) is also seen to be very active on social media and has done a great job at attending trade shows, conferences and seminars. However, members of the crypto community lack the expected enthusiasm. Recently, Lisk (LSK) announced a test net launch which was expected to receive a lot of attention from the crypto community. However, nothing of the sort reflected in the price. In fact, the price of Lisk (LSK) kept falling until it broke below $5. Currently it is trading at $4.8 but will likely settle near $4 in the next few days to test the bottom of the bullish channel.
Test net launches have been seen to get a lot of attention from the crypto community in the past which has reflected in the past. However, this time the circumstances are different. One reason why much exuberance was not seen with Lisk’s test net launch was the overall bearish outlook of the crypto markets and the prevalent negative sentiment. Another reason that better explains the lack of interest is that most cryptocurrency investors believe that Lisk (LSK) does not deserve such a high valuation without an SDK release. A bearish sentiment alone cannot be a justification as we have seen coins like Ethereum Classic
(ETC) and Zilliqa (ZIL) perform better on positive news even in an overall bear market. While the Lisk (LSK) community is an active one, comprising mostly of competent individuals who are go getters and seem committed to the project, Lisk (LSK) will have to do more to justify its inclusion in the top 20 club.
On the technical side, Lisk (LSK) appears no different than Ripple (XRP). The price of Lisk (LSK) appears to have reached rock bottom against both Bitcoin (BTC) and the US Dollar (USD). It is undervalued the same way as Ripple (XRP) and has potential for similar expected return on investment. The difference is that Lisk (LSK) has better fundamentals. Lisk (LSK) has a better chance at a multi billion dollars valuation and can yield lucrative gains, but not before a working model. Projects like Ethereum (ETH) and Ripple (XRP) have proven use cases, effective or not, which is why they have been successful in having more people invest in those cryptocurrencies. The challenge for Lisk (LSK) team is to come up with a working model that can be used by the general public, before competitors like Tron (TRX), EOS (EOS) or Cardano (ADA) beat Lisk (LSK) to it.