STEEM Plummets 42.84% in 24 Hours Amid Volatile Weekly Gains

On June 4, 2025, STEEM experienced extreme volatility, plummeting 42.84% over 24 hours to trade at $0.14165. Despite the sharp decline, the cryptocurrency showed significant upward momentum in prior periods, rising 649.1% in seven days and 410.6% in 30 days. However, its year-to-date performance remains deeply negative, with a 4,722.8% drop since June 2024.

Market Volatility Intensifies

STEEM’s intra-day decline followed a period of rapid gains, underscoring the asset’s high sensitivity to market shifts. While short-term traders capitalized on its 649% weekly surge, the 24-hour drop reversed nearly half of those gains. Analysts noted the disconnect between its short-term resilience and long-term trajectory, with price swings reflecting ongoing uncertainty in decentralized finance (DeFi) markets.

Short-Term Gains Contrast with Long-Term Decline

The cryptocurrency’s month-on-month performance highlighted divergent trends. A 410.6% increase over 30 days contrasted starkly with its annual decline, which far exceeded typical market volatility metrics. This dichotomy suggests speculative activity may be driving short-term price movements, while broader structural challenges persist.

Analysts Weigh In on STEEM’s Trajectory

Analysts project continued instability for STEEM, citing technical indicators and liquidity constraints. One noted, “The asset’s extreme weekly gains were likely fueled by low liquidity, making it prone to sharp corrections.” Another emphasized that the 24-hour drop aligns with historical patterns of overbought conditions in niche cryptocurrencies.

Regulatory and Structural Challenges Loom

STEEM’s long-term decline has been attributed to regulatory pressures and competition within the blockchain ecosystem. While the cryptocurrency’s protocol upgrades were cited as a catalyst for short-term optimism, sustained growth requires overcoming scalability and adoption hurdles.

Trading Activity Reflects Market Sentiment

The sharp 24-hour decline coincided with reduced trading activity, suggesting diminished investor confidence. Volume metrics indicate a pullback in speculative positioning, though open interest in derivative markets remains elevated compared to earlier this year.

STEEM’s performance underscores the risks of investing in highly volatile assets. While short-term gains captured attention, its year-to-date losses reflect deeper challenges in sustaining value amid evolving market dynamics.