Lisk (LSK): Can This Asset Regain Its Appeal

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Lisk (LSK) is making another attempt to extend its price action and break out of the recent lows. The project, which achieved significant influence during the bull market in 2017, has fallen from mainstream attention, displaced by more active trends. The past months established significant LSK rallies, showing there is still interest in trading the asset and possibly tracking the project for longer-term success.

LSK is a network that attempted to solve some of the problems of Ethereum (ETH), mostly in terms of expensive transactions and unpredictable network congestions. The Lisk platform wanted to create a decentralized environment to build distributed apps. The other advantage of Lisk is that it allows the creation of JavaScript apps, accessing a wider talent pool of developers. 

LSK Breaks Out in the Short Term

LSK recently extended its short-term breakout, to stand above $4. During the 2021 bull market, LSK managed to climb to $9, after hovering sideways at around $1 for more than a year. 

LSK has achieved its peak price in late 2017, before the protracted bear market, and reached $34. Previous predictions envisioned LSK going to triple-digit prices, with the possibility to compete with ETH. 

The recent breakout extends the week-long attempt to move to a higher range, and now LSK is in the midst of an active rally. LSK is expected to continue the trend for a while, though in the past prices have backtracked just as fast. 

BTW, $LSK was $3 during this post.
It is near $4 now.

Thats 33% in 2 days or so. https://t.co/zx1YL6eLqg

— Joseph Gainez (@cryptowithjoe) August 6, 2021

For LSK, a $5 target is seen as possible. However, the project is now more obscure, hanging even outside the top 100 of coins where previously it made top 20 in terms of market capitalization. 

Is Lisk Still Innovative

The Lisk project is one of the platforms that failed to attract the attention of distributed app builders. Despite the attempts to displace ETH, most dApp creators still chose the older and wider network. 

LSK was attractive for its potential to stake the coins, as well as for large-scale owners to become super-delegates. At one point, the network received criticism for always keeping in place the same list of top delegates. 

But the Lisk project may be entering another phase, as it announced a network reboot. This is not unusual for older networks, which aim to become more agile and gain a piece of new project building in DeFi and collectible token sales. 

The Lisk project set the date for its 3.0 version launch, pulling the deadline closer to August 21. A network reboot may boost the attention for LSK and affect prices in the days running up to the release. 

📣 Anticipating the Lisk Mainnet v3 Migration

🚀 21st of August, 10am CEST
🚀 Block height 16,270,292

We recently announced the estimated date and block height of the biggest update to a running production blockchain ever. Now, it’s happening even sooner. 🔥

Are you ready? 👨‍🚀

— Lisk (@LiskHQ) August 5, 2021

For LSK owners and traders, the Mainnet 3.0 migration will cause some inconveniences. On the day of the migration, the network will extend a 201 block grace period to ensure security and no double-spending. Coins sent during that grace period will not be reflected in Mainnet 3.0 balances. 

LSK owners should then make sure not to send coins on the day of the hard fork. Additionally, the Mainnet 3.0 will only come with desktop wallet support, disabling the current LSK mobile wallets. 

The biggest change for Lisk is that its tokens and transactions will now have chain interoperability technology, allowing LSK to move to different networks and possibly participate in DeFi projects and other sources of passive income. 

LSK Still Has to Build Liquidity

The trading of LSK reaches just around $200M per day, a fraction of the activity of more popular assets. 

LSK has highly liquid pairs on the Binance exchange, with relatively high liquidity score and some potential to avoid slippage. Still, drops of 20% in a single day are not unusual for the asset. 

LSK is also open to EU-based traders, offering direct fiat access through the Kraken market. The Lisk project remains connected to the EU, as it is based in Berlin and is one of the few cryptocurrency projects with transparent operations and actual physical offices. 

Lisk Holds onto Significant Funding

The Lisk project started with an ICO in 2016, raising about $6M equivalent. The platform, however, picked a moment when BTC prices had not gone through the bull market of 2017. 

Thus, despite raising a modest $6M, the Lisk project is actually sitting on more significant reserves. The startup also issues regular reports on its selling operations, and has preserved most of its BTC haul. The Lisk project holds a 1,898 BTC wallet, along with other reserves in USDT and LSK. 

Lisk also has about 6.3M EUR in liquid cash, with the potential to support innovation. The Lisk platform shows a higher level of GitHub commit activity. Yet despite all this, the Lisk brand is yet to re-establish itself and regain its reputation in crypto space.

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