What happened
One of the only cryptocurrencies to have recently made new yearly highs is Quant (QNT +1.24%). Despite dipping 6.2% over the past 24 hours, as of 1 p.m. ET today, this token is actually up 11.7% year to date at the time of writing. That's a rather incredible feat, considering most tokens are down considerably (50% or more) on a year-to-date basis.
CRYPTO: QNT
Key Data Points
Quant's surge appears to be tied to interest in this project's Overledger technology, the first-ever operating system designed to allow blockchains to speak to each other. This technology is reportedly being looked at by central banks as useful for central bank digital currency (CBDC) development, a key hot-button topic right now. In fact, Quant wrote about Overledger's potential to be used in CBDCs in a detailed research paper on the topic.
Today's downside move is one we haven't seen in some time. For now, it looks as though this token is taking a breather after relatively consistent moves higher in recent weeks.
So what
Interoperability is a big buzzword in the crypto realm. In layman's terms, interoperability is really the ability for various blockchain technologies to communicate with each other. With each crypto project taking on unique code and methodologies, developing a way for these siloed technologies to interact is something that's been a very difficult problem to solve.
Quant's Overledger tech is groundbreaking in many ways. However, it hasn't really taken a hold of investors until recently. Continuous headlines about more and more central banks exploring the possibility of a CBDC and going so far as to run pilots suggest Quant's technology could become very valuable to governments looking to enter the crypto space.
Now what
The question of how to value cryptocurrencies, as representative of the value of their underlying technology, is one that will continue to rage on. Whether Overledger ultimately gets approached to be bought by one or more central banks or simply comes to terms with central banks on fees charged to integrate this technology with future CBDCs, it's likely to be a lucrative future for this project. At least, that's what the market is pricing in right now.
I think Quant is certainly a token worth watching as governments around the world consider the potential for digital currencies. Crypto is going mainstream, and Quant may be the key technology that allows for mass adoption of digital currencies after all.
