If you constantly keep up with the cryptocurrency market, then you may have noticed a new digital currency called eCash (XEC) currently ranking 32^nd on Coinmarketcap. Although its presence might catch many by surprise and potentially even push people to YOLO into it due to FOMO, there are a few things you should know.

ECash whose ticker is XEC is a rebranded version of Bitcoin Cash ABC. However, it’s rebranding also came with a redenomination at a ratio of 1:1000,000, thus leading to a circulating supply of 18.83 trillion and a maximum supply of 21 trillion XEC coins. The inflated supply is reminiscent of Shiba Inu which begs the question of whether there will be token burns or what the project aims to achieve.

XEC is currently trading at $0.00025 and is down by 10.01% in the last 24 hours, although its weekly performance indicates that it is up by 18.65% in the last 7 days. The coin currently has a market cap of $4.75 billion. The cryptocurrency has so far delivered an interesting performance since the start of August 2021 during which it traded as low as $0.000032 before peaking at $0.00039 on September 4 right after its Binance debut. However, it has since then experienced a slight pullback likely due to traders taking profit.

Source: Binance

Should you buy XEC?

Right now might not exactly be the best time to purchase the XEC cryptocurrency for numerous reasons. Its trading volume has reduced significantly and the RSI indicator suggests that it is currently overbought. Its moving averages also indicate that it currently has a bearish outlook. The high circulating supply and maximum supply might be a red flag for many crypto traders. But what about its long-term outlook?

Can XEC continue to deliver favorable price action?

It largely depends on the use case for the cryptocurrency. One of the best things to look for when determining whether a cryptocurrency with a large circulating supply is worth anything is whether it has strong utility and token burns. The eCash project aims to facilitate the existence of sound cash thus the high circulating supply. The goal is to make sure that there are enough eCash tokens to make them accessible to the masses so that they can be used for day-to-day transactions in the future.

The project focuses on usability by providing a coin that can be accessed by anyone across the globe. The eCash protocol is powered by the Avalanche blockchain, allowing it to leverage rapid transaction speeds, and robust security without compromising decentralization. While there has been no mention of token burns, the project seems committed to becoming the digital currency that will facilitate mass usage in the online landscape.

The eCash protocol hopes to be the medium through which value will be exchanged easily and affordably in the future. While this means it is not aimed at speculation, adoption will likely lead to a higher market cap and also a potentially higher price tag. Unfortunately, other coins such as Shiba Inu have gone down that road and not much has come of it. Although it is still too early to tell whether eCash will be a success, their website suggests they are in a stage of robust infrastructure development. Perhaps it will succeed where others have failed but it does warrant caution especially to speculative investors.