MARKNetwork Blockchain: Masternode performance

Why Masternodes ecosystem kept growing in the bearish market?

Short summary of the article:

“Do not get left behind”

»The Masternodes changed the way crypto enthusiasts participate in the ecosystem. Despite the crypto winters, the number of Masternodes and Masternode coins kept growing. How did it happen?«


The bear market made it difficult for the crypto miners to sustain in 2018, the decreasing rate of crypto assets made many miners go offline. Hundreds and millions of dollars were lost by miners across the globe. The ripple effect leads to struggling existence of mining equipment providers like Bitmain which suffered a loss of $740 Million in Q3 of 2018.

Masternode owners were lucky enough as they did not have to deal with electricity cost which turned mining unprofitable. They proved to be a great hedge for crypto asset owners against the market volatility of 2018.

Time to talk numbers!

As per 2018-CoinGecko-Report the number of masternodes and masternode coins have significantly grown from Jan 2018 to Dec 2018. Jan 2018 started with 57 Masternode coins which went up to 536 by end of 2018 while the number of masternode coins inflated from 35,780 to 250,307. Let us take a closer look at the quarter wise growth.

Quarter 1

Increase in number of Masternode Coins +258%

Increase in number of Masternodes +188%

Quarter 2

Increase in number of Masternode Coins +79%

Increase in number of Masternodes +84%

Quarter 3

Increase in number of Masternode Coins +32%

Increase in number of Masternodes +25%

Quarter 4

Increase in number of Masternode Coins +11%

Increase in number of Masternodes +4%

While the number of Masternode Coins and Masternode saw a significant leap, the market cap witnessed a notable drop because the crypto market was bearish. Despite the double-digit drop, no Masternode owners faced operations shut down like what happened in case of crypto mining.

Masternodes that performed the best

From the market capitalization perspective, the top 10 performers in Masternode coins are:

  1. Dash
  2. PIVX
  3. ZCoin
  4. Horizen
  5. SmartCash
  6. Syscoin
  7. Swarm
  8. EtherZero
  9. Wagerr
  10. Energi(MARKMining supports full and shared Masternode hosting)

Best Guide to Evaluate a Masternodes

While the market is bearish, it is the ripe time to begin hosting Masternodes. The best part about the Masternode ecosystem is that it is full of promising teams and projects all we need to do is dig them out. MARKMining platform does not directly encourage participation in any particular masternode but we do bring you the due diligence advice from experts:

Token Utility

Dash was the first masternode coin that proved successful for its participants. At peak of crypto summer, setting up a Dash masternode required $1.5 million. The model got copied very quickly, scammers started entering the ecosystem. To differentiator between the legitimate project and a scammer is the availability of a utility token always.

Countless copies of Dash coin came up with proposals of ROI but lagged the utility token which means the effort that goes into protecting a network of nodes must be worth it. When we look at the top 10 performing coins of 2018, it is worth noticing that each coin has a utility like Dash is a privacy-based digital currency, PIVX, ZCoin and Horizen are privacy coins, Syscoin is a medium for business trading and Energi is a smart contracts platform.

The utility defined around the project must be realistic enough, it may not require to be unique but must be achievable.

Visibility of the team

The first place to check out the team is the Masternode official website or whitepaper. These projects have legitimate and active groups on Discord, Slack or Telegram to keep in touch with the users. The team actively communicates with the participants and updates them about the bugs, collaborations, and announcements. If the whitepaper and website do not say anything about the team, the project might not be worth participating. Before you even decide to participate in the Masternode, you can join the Discord group and keep a check on the activity level like how quickly are the queries being addressed.

Roadmap reliability

Checking out the roadmap of the project is the ideal way to find out the integrity. Generally speaking, the project would have laid out the future steps very clearly. The step could be releasing a platform, a wallet, listing on exchanges and websites like coinmarketcap and more. If the project is more than a year old, it becomes essential to have a fungible product in the market and at the same time in adherence with the roadmap. Some projects spend a lot in creating hype around the project and spend almost nothing on building products. If such projects promise returns for participation, they might not be able to keep up with the promise.

Participation reward frequency

Every Masternode project that allows participation had a reward structure in place. It is important for you to understand how the block reward structure will evolve, how frequently will the masternodes be added and what is the block schedule.

Some of the masternode rewards may decline over time as the block height keeps increasing. As the network of Masternodes increases, the frequency may also diminish impacting the return of participation. If a project offers very high returns, it becomes a must to check the future of the reward structure looks like.

Team holdings

It is important to know how much pre-mine the team is holding. A higher pre-mine percentage holding is not a positive sign as the team may dump the tokens which will negatively impact the returns for active Masternode participants.

Product layout Guide

Despite the active team, it is vital for the project to present themselves in an acceptable manner. The website performance, the social media presence, and community management are the most important parameters to determine the success of the project. A well put whitepaper, a good project guide, a product roadmap which gives you a clear idea of how the project is progressing is the must for indicating a promising project.

Volumes and liquidity

Check out the reliable exchanges where the tokens of these Masternode projects are listing. The figures you need to keep an eye on are the volume and liquidity of the tokens. The liquid able projects are the best ones so that the participants can exchange the tokens with cryptos like BTC, ETH or fiat.

Open Source code

Is it possible for you to check the code that supports the project? Well, yes it is quite easy as the code developed is mostly open source and present in Github that hosts the public code in different repositories. It stores all the information with a time stamp like the project releases, the bug fixes, the upcoming updates and more. Keeping an eye on the progress here is quite an assurance that the mill is grinding in the back.

If you see the project code is not moving or changing since long, it may mean the developers might have stalled the working which is not a good sign. If a team has spent time enough time on development, the chances are less than they might desert the project. An exit of developers may indicate the project will be doomed soon.

To wrap

Your Masternode deciding journey may lead you to better projects if you do exhaustive research on the basis of measuring steps we advised you. With our MARKMining platform, we bring you a near instant set-up experience of participating in 15 different masternodes as full or shared masternodes.

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