Ampleforth (AMPL) has been one of the top-performing cryptocurrencies over the past month. The asset, whose long-term price performance is measured by its market capitalization rather than its nominal price, gained ~5,000% in July.\nThe asset has seen a steep correction over the past week as the focus of crypto investors has been on Bitcoin and Ethereum.\nAfter a recovery, AMPL is dropping once again.\nThis drop comes in spite of positive on-chain and social media signs, according to blockchain analytics firm Santiment.\nAmpleforth Drops 20% Despite On-Chain Data Indicating Accumulation\nAccording to TradingView data, Ampleforth (AMPL) has dropped 20% in the past 24 hours as it has also been impacted by the flash crash in Bitcoin.\nAmpleforth is an algorithmic stable coin that attempts to stabilize its price on the U.S. dollar in the long term. It responds to supply and demand by daily \u201crebasements,\u201d which means that long-term holders of the token will have their balance change each day to try and center the price around a dollar. This latest price drop may be a byproduct of Bitcoin\u2019s flash crash, coupled with an increase in the supply of AMPL.\n\nChart of Ampleforth's price action over the past few days from TradingView.com. Depicted is the price action of the Ethereum-based coin on FTX.
\nPrice action may differ from exchange-to-exchange due to inefficiencies in this new(er) market and price action on futures vs. the actual coin.\nThis price drop in the price of AMPL comes in spite of positive on-chain and social trends, according to Santiment.\nThe blockchain analytics firm shared the chart below on July 31st. It shows that the weighted social media sentiment of messages regarding Ampleforth has hit a level above 3; a social media sentiment at such a positive reading suggests an extreme number of bulls as opposed to bears.\n\nSantiment added that per their data, \u201cwhales are accumulating\u201d AMPL. Though, seeing the recent price action, it isn\u2019t clear if they are having a big enough effect on the Ethereum-based token\u2019s market.\nHow AMPL Succeeding Could Boost Ethereum\nThe recent price action has neither confirmed nor denied Ampleforth\u2019s long-term goals to be a unique form of money. Thus, analysts have commented on what long-term effect this experiment could have Ethereum and the broader cryptocurrency space.\nRyan Sean Adams, the founder of Mythos Capital, says that he thinks Ampleforth succeeding will be \u201cunbelievably bullish for\u201d ETH.\nThis is because Amples becoming widely adopted as money will drive record demand for Ethereum transactions, forcing up the price of ETH. Ampleforth\u2019s success will also trigger other innovations in money and other facets of society on the network, further driving demand for ETH.\n\u201cBCH, ZEC, XMR, BTC, ETH, DOGE, AMPL. Base monies. M0s all competing w\/ each other. AMPL is the only one w\/o its own chain. It settles on Ethereum. If the AmpleForth experiment is successful, we\u2019ll see a rush of M0 monies competing on Ethereum.\u201d\n\nBCH, ZEC, XMR, BTC, ETH, DOGE, AMPL\nBase monies. M0s all competing w\/ each other.\nAMPL is the only one w\/o its own chain. It settles on Ethereum.\nIf the AmpleForth experiment is successful, we'll see a rush of M0 monies competing on Ethereum.\nThis is unbelievably bullish ETH.\n\u2014 Ryan Sean Adams \u2013 rsa.eth (@RyanSAdams) July 28, 2020\nhttps:\/\/platform.twitter.com\/widgets.js\nAdams notably did not comment on whether or not he thinks Ampleforth will succeed or fail as a project. He did, though, call it an \u201cexperiment.\u201d\nFeatured Image from Shutterstock
\nPrice tags: ethusd, ethbtc, amplusd
\nCharts from TradingView.com
\nEthereum DeFi's Ampleforth (AMPL) Drops 20% Despite "Whale" Accumulation