DASH is one of the older privacy coins that have brought a lot of features over the past few years. It’s fast, it’s cheap, and it has a privacy option. DASH is perhaps one of the better coins when it comes to older blockchain generation. It also has a good adoption rate in developing countries such as Venezuela.
However, is it truly a good investment? Now, this is something that we still need to talk about as things have changed since years ago after the Ethereum and smart contract revolution.
The perfect combination of speed and privacy
DASH was launched in 2014 as a privacy coin. It was a fork of Litecoin, but the core team quickly added the privacy feature into the coin. DASH quickly grabbed the attention of crypto enthusiasts. Its PrivateSend feature can help DASH users to conceal their transaction flow from the public eye.
DASH quickly rose to the top of the privacy coins list, and it directly competed toe-to-toe against ZCash (ZEC) and Monero (XMR). However, even though it was known as a privacy coin, it had extra benefits compared to its competitors. It’s fast.
After several years, DASH decided to rebrand itself to a fast coin. It tries to tell people that using DASH to move money is fast and would cost much less money compared to fiat transfer. It still has the PrivateSend, but it tries to push its InstantSend feature as something more appealing for its user base.
With the perfect combination of speed and privacy, DASH quickly became more popular than ever. There are plenty of retail stores accepting DASH, mostly in developing countries like Colombia and Venezuela. DASH maintained its position in the top 15 crypto rankings for quite some time because of its high adoption rate.
Is DASH still a good investment?
However, even though DASH used to be promising, it fell from the top 15 rankings. When this post was written, DASH was still sitting on the top 30 crypto rankings, but it is definitely not as popular as it used to be. DASH also rarely made it to the crypto headlines anymore. The crypto media is all about DeFi at the moment, and DASH is missing in action for that particular department.
This is because DASH doesn’t have the capability to write smart contracts or support blockchain interoperability. It’s an old blockchain with one function: transferring DASH coin from one wallet to another. That’s it.
Compared to newer altcoins from 2017 and above, DASH looks like it’s outdated and doesn’t look strong anymore. Yes, it’s still fast and still provides privacy, but most people are not in crypto for transferring their money through DASH. And therefore, it might take a lot of time before DASH can see mainstream adoption (if ever).
The thing about crypto space is that it’s moving at a very rapid pace. What was trending in 2017 is not trending anymore. What’s currently trending in 2020 might not trend anymore in 2021. And for this exact reason, it might be hard for DASH to make a comeback next year. It’s still a top coin with a large market cap, but DeFi coins and other platforms will gradually replace it as time goes by as if it doesn’t make any radical change.
DASH is great but not what crypto people want
While DASH provides a great alternative when it comes to transaction speed and privacy, it’s still not what people want. Eventually, people want something more than a simple “moving money from point A to point B.” They want to interact with DeFi protocols like how you provide liquidity to Curve or yearn pools.
DASH, at the moment, is becoming irrelevant because it’s unable to do so. However, in another perspective, DASH remains an attractive coin, especially for those who want some privacy in moving their money within a short period. It might not become another Ethereum killer as it doesn’t have smart contract capabilities, but it is still a coin with good potential.