What does it mean? It is a question worth answering and diving deep into. In order to determine what sustained growth is, a clear set of principles and guidelines must be established, or at the very least considered. How long does something need to trend in the right direction to be considered a “growing" trend? What percentage increases over this time period are worthy enough to be labeled as sustained in regards to the combination of time and supposed growth?
For this article, I’m going to determine these principles as the entire lifespan of the asset in question, along with a clear overview of the assets historical lows and highs, along with its higher lows and lower highs in this entire time frame. I’m considering the entire lifespan of the asset in question due to its age.
To showcase what I believe “Sustained Growth” is, I am going to talk about BSoV, which I have discussed in the past. I’m going to start by outright stating that BSoV’s 1 year chart, as of this writing, reports a 456.0% return. Returns on the token going back to launch are most likely a tad higher. But its fair to ask if BSoV has sustained this growth over its lifespan. Were going to break down why and how it has earned the title of a sustained growth digital asset.
The chart shown above, provided by CoinGecko, speaks for itself. But let’s look at what is really going on here. In the very early days, price fluctuated and seemed to be all over the place. This is common in new markets, and even more common in new assets in these markets. This also occurs in markets with a long history and rap sheet. Its what you would call price discovery. Whats interesting to note is the floor which was determined quite early in the tokens overall lifespan. (This floor was discovered on December 2nd, 2019 with the floor being $0.00134187)
The reason why it is safe to determine that $0.00134187 is BSoV’s floor is because the nearest dip was only able to reach a low of $0.00661247 on March 31st, 2020. In between the dates of 12/2/19 and 3/31/20, BSoV was able to reach a high of $0.058731, which occurred on 2/5/20. What we saw was a clear incident of a lower high and a higher low, with BSoV briefly reaching its all time high of $0.18 during price discovery. While it is an all time high, it can be deemed artificial as true intrinsic value was still being determined.
With evidence of a higher lows and lower highs backing a title of a sustained growth asset already, let’s look even further down the road, from 4/1/20 to today’s date. Shortly after the higher low mentioned above occured, an even higher low was witnessed on 4/12/20 when that resistance was looking to be tested, but held on at a slightly higher resistance level than thought, with that level being $0.00671945. After this date, BSoV never tested that resistance level again.
Price began to slowly but gradually rise. A new lower high was discovered on 7/11/2020, with a price of $0.097201. In addition to the lower high being called into the chart, a higher low was also established down the road at $0.03694029 on 8/15/2020, with price resting at a comfortable $0.072007 as of this writing (9/5/2020).
This 180 day chart shows even clearer the levels of support BSoV is enjoying at various levels. Keeping in mind that BSoV is a minable, decentralized smart contract with a deflationary mechanism built in its code, its easy to see this is natural and organic. With DeFi booming, BTC aiming for new all time highs, and Ethereums network being utilized like never before, you can say with certainty that the growth that BSoV is seeing is indeed sustained.
The real question that needs an answer is how long will this growth be sustained?