My sentiments regarding Arweave are a blend of positive thoughts and lingering reservations. On one hand, Arweave manages to tick several boxes that align with my investment criteria, yet on the other hand, there are noteworthy aspects that trigger a sense of caution.
What I find appealing about considering Arweave as a potential investment:
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Growth Potential in a Thriving Space for the Future: Arweave operates within a sector poised for sustained growth, the ever-increasing demand for data storage services gives the project a promising outlook.
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Proven Service: The fact that Arweave already has a functional and operational service is a definite positive. This indicates they've crossed the initial hurdles and can focus on refining and scaling their offerings.
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Market cap in Comparison to Biggest Competitor: A key indicator of potential growth the project could achieve is the substantial disparity in market capitalization between Arweave and its primary competitor, Filecoin. The significant valuation gap implies room for Arweave to expand and capture a larger share of the market.
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Long-Term Interest from a Technical Analysis Perspective: From a high time frame perspective, the substantial depreciation it has had, amounting to over 95% from its highs make me definitely interested at the current support levels it is at for long term buys.
However, there are reasons giving me pause before making a decision:
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Persistent Downtrend on Yearly Chart: A concerning factor is the consistent downward trajectory seen on Arweave's yearly chart. This trend persists despite the broader crypto market experiencing a relative bullish phase, which has included positive movements in major cryptos like BTC, ETH, + other promising altcoins.
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Permanence of Stored Data: An aspect highlighted by another analyst that raises apprehension is the concept of permanent data storage without the option for deletion. This feature could potentially deter users who value control over their stored information.
In conclusion Arweave presents a tricky investment proposition. Its alignment with a growing market, existing operational prowess, and significant growth potential are enticing. However, the ongoing downtrend on the yearly chart with lack of relative strength shown and concerns about data permanence warrant careful consideration. I think I will just stay on the fence for now. Show Less
