Steem Bursts to All-Time High, Predictions of $10 to Materialize?

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For months, Steem (STEEM) looked like a niche coin, related mostly to the use of a single social media site. But in the past week, STEEM burst to all-time highs, and has taken the spot of yet another speculative digital asset.

STEEM retreated a little from the peaks above $6. At the same time, a curious phenomenon is happening to Steem Dollars. The digital asset that was supposed to be tied to the US dollar by algorithm-based interventions, has risen toward $10.

At one point, Steem Dollars reached a peak around $12, while STEEM remained depressed, with a recent low around $0.80 before the sudden recovery.

The new rise in Steem may create buying demand on Bittrex and Poloniex, and test the community's willingness to hold the coins, or invest long-term. Some believe the current price spike would be short-lived, and hurt those buyers who enter near the all-time high.

"Don't get into$STEEMhype. A super inflating coin with a community of longterm bag holders sitting there to dump on you. The only reason for these price movements is because of the fact that#STEEMhas many locked coins but tones of them waiting to be dumped ASAP— Elliptic Investor (@ellpinv)January 2, 2018"

Some, however, believe a price of $10 is doable in the short term, while the Steem coin remains an asset to put some funds into for 2018.

However, STEEM has not by any stretch reached a true recovery against Bitcoin, and may sink again if Bitcoin gains traction. STEEM mostly relies on trading on Bittrex and Poloniex, and the current rally may be short-lived.

But at the moment, STEEM remains very volatile, only touching briefly a peak at $6.45, to sink back again to lower levels.