In the world of cryptocurrency trading, you may notice that it can become chaotic, especially if you are a newcomer to the party. The good news is that the smart contract SMARDex market maker is now available to make it easier to track market performance of one or more specific cryptocurrencies. Let’s find out more about SMARDex and how it can assist in price prediction of a specific token or coin.
What Is SMARDex?
As mentioned, SMARDex is defined as an “automated market maker”. This smart contract automated market maker is meant to serve as a decentralized software whose key attraction is its potential ability to minimize “Impermanent Loss” while making “Impermanent Gain” more likely to happen.
But this market maker is also not biased or prejudiced for or against any specific cryptocurrency. This neutral status makes it valuable for any trader.
“Impermanent Loss” in return can be described as the financial loss that may happen during a trade since not every exchange listed on the market maker can list the same price of a particular token or coin as every other exchange. Inevitably, a loss can occur just because there is no one overriding price for a token or coin for the entire market.
On the other hand, an “Impermanent Gain” is considered to have been achieved when the trade results in the trader gaining a higher price for the token or coin being traded.
Both are considered “impermanent” or temporary until such time that the trade is finalized then the loss or gain is then considered “permanent” or final.
Why Is SMARDex Necessary?
The advantage of having a smart contract automated market maker like SMARDex is that a trade can be initiated even after regular office hours in any country. There is no favoritism for a particular transaction.
This kind of objectivity is important so the market data cannot be skewed for any third party. It is then unlikely that the price of a token or coin will be significantly affected by a particular trade which is why Impermanent Gain becomes more possible.
The other advantage of SMARDex is that it is an open-source technology meaning you can easily use it without fear that you will have to pay any amount of fees to use it.
This makes it less expensive than relying on middlemen (meaning individuals and/or companies) who will charge their own fees that, in turn, make crypto transactions more expensive.
This also means that the automated market maker is more reliable and factually accurate so human error is no longer a factor. Plus there will not be any centralized over-all authority to scrutinize the transactions, keeping it true to the philosophy of cryptocurrency trading which is decentralized freedom of trade.
Lastly, a market maker is valued because it can increase the liquidity in the market. This is the bottom line of maintaining the cryptocurrency market itself. Liquidity refers to the ability and speed of converting a cryptocurrency stash into fiat currency or cash.
The more liquid a crypto asset is, the less likely it will be to pose problems for any trader. Using SMARDEX means that a trader can buy or sell ERC20 tokens in a decentralized manner meaning there is more freedom and privacy.
Why is SMARDex Preferable to Other DEXs?
One research paper entitled “The SMARDex Protocol: A Novel Solution to Impermanent Loss in Decentralized Finance” describes the SMARDex advantage this way: “The positive outcomes of the simulations strongly suggest that SMARDEX provides a superior trading experience compared to other DEXs”.
It also goes on to say that “Based on the various scenarios presented, it seems clear that the technology works and that old-generation DEXs…will quickly become obsolete.”
This indicates that SMARDex can possibly help a trader like you become more profitable in crypto trading. However, this does not mean that you will derive “Impermanent Gain” each and every time you trade in crypto using SMARDex.
It’s not a solution to secure Impermanent Gain 100% of the time. It just makes it more likely that the small traders can compete against the big fish who can influence market price by acquiring huge volumes of crypto during a trading period.
Is Now a Good Time to Buy the SMARDex?
Based on the Coincodex.com price prediction status, SMARDex (traded as SDEX) is not listed as a “good buy” for 2023. This is because the technical indicators show that the market is too “bearish” for SMARDex, despite the positive intrinsic advantages of the automated market maker.
The current price of SMARDex on Coincodex.com is placed at 0.008923 USD which may improve to 0.009228 USD within the next month. For year 2024 up to year 2030, here is the table of Coincodex.com for the SMARDex data (as of August 21, 2023):
However, some may consider buying SMARDex anyway since the automated market maker is projected to be priced at $ 0.009228 for a gain of 22.21% on February 17, 2024. The changes in price can be influenced by large players who tend to acquire large volumes of the SMARDex (or SDEX) thus changing the buy or sell price significantly over time.
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Conclusion
Since SMARDex itself has many favorable intrinsic qualities that make it an attractive smart contract automated market maker, it is puzzling why the market price doesn’t seem very favorable at the moment. However, this may improve by the year 2024, as the data showed.
It is suggested that you may use this time to study SMARDex in finer detail to see if its natural attributes will make it a good deal to invest in for the next years up to year 2030.
Meanwhile, enjoy the cryptocurrency trading space as you gain more knowledge, experience, and insight regarding SMARDex and cryptocurrency trading in particular.
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