Why Is Steemit Price Dropping Day by Day? Will It Ever Go Up Again? Deep Dive & Recent Update

hamzayousafzai (74)in #steemexclusive • 15 days ago

Hello everyone I hope you all are doing well and enjoying your life. Today I want to talks about a very imporant topic many Steemian and crypto enthusiasts is concerned about:

Why has Steemit / STEEM been droping in value over the years and is tere a realitic chance that the price could o up again?

The drop is not caused by just one mistake or factor its the result of multiple interinked issues: structural flaws ecosystem stgnation commnity ailure maret wide declines and a loss of trust. Below is a detailed analysis combining old history and recen data (2024–2025).

Hstorical Prolems Fondatns of the Decline

Launch Hyp and Crash

Steemit was launched in 2016 as the first major social meia built on blockchain. Its native token STEEM was meant to reward content creators and curators. en.wikipedia.org
In its early days STEEenjoyed hype and relatively high value. But with the 20182019 crypto bear market the broader downtur hit Steemi hard. TechCrunch
Because of financial prstructure. TechCrunch
That downsizing signaled a sharp redction in development resources a crippling blow for any platform that needs constant maintenance innovation and communit support. SiliconANGLE

Structural & Governance Issues: Why the Platform Never Fully Recovered

The platform uses a delgated proof of stake (DPoS) model: votes and rewards depend heavily on stake (Steem Power). But academic studies have shown that in practice decentraliation was weak: a relatively smallnumber of large stakeholders (sometimes “whales”) had disproportionate influence. arXiv
This led to prolems like “vote bots ” artificially boosted upvotes and reward manipulation. In fact researchers found that a significant portion of the reward and curation distribution was directed to account suspecte to be bot. arXiv
As a result many real uers creators and curators lost faith because content and reward fairness eroded. People saw that it was “pay to win” rather than “merit based content creation.”

These early failures massiv layoffs governance flaws reward manipulation weakened the foundation of trust growth and decentralization for Steemit.

Continued Weakness User Declin & Ecosystem Stagnation

User Growth & Onbarding Problems

After the early crash and layoffs Steemt never manged to regain the “critical mass” of active uses that had been anticipted. As hype died down user griowth stgnated. CryptoSlate
New signup issues account-creation friction low enggement lack of guiance thse have persisted (as many longtime users complain).

Lack of New Development / Platform Innovation

Post-2018 the development pace slowed considerably. With fewer staff and decreasing resources Steemit’s ability to release major upgrades or new features was heavily limited. This hurt long-term competitiveness vs. newer Web3 / Social-Fi platforms. CoinCodex
Over time many content creators and usrs drifted away due to frustration over unfair reward distribution lack of updates bots and low visibility.

Weak Marketing & Visibility

Compared to other crypto projects/platforms Steemit received little marking push almost no big parnrships and limted outeach. As blockhain and crpto spae grw Seemit stayed almost invisible hrdly attracing new crpto-intrested users or ontentcreators.
Lack of external visibity in social media crypto news or influencer coverage meant demand for STEEM stayed low (fewer buyers fewer investors).

Large Supply Selling Pressure & Liquidity Issues

Over the years many STEEM holders (especially large ones) have “powered down” or sold tokens. This created consistent downward pressure: more suppl on exchange fewer buyers and dropping price.
Liquidity has been weak meaning small demand changes (sell offs) tend to hit price hard.

Recent State (2024–2025): Whats Happening Now Mixed Signal

Even in 2025 Steemit still exists but its prolems remain deep. New data shows both some attempt at revival and continuing structural issues.

Some Community Driven Efforts & Activity

As of November 2025 the Steem community launched challenge competitions (e.g. “Season 28”) and events that encourage content creation engagement and curation. AInvest
These contests sometimes produce short-term bumps: more posts more interactions slightly increased token circulation. For example recent analysis notes that a small uptick in price (e.g. 4.5% over 24h) was partly triggered by renewed engagement and community-driven content activity. CoinMarketCap

But Underlying Problems Still Persist and Keep the Price Down

According to 2025 price analysis STEEM remains weak technically: prices are often below key support levels trading volume is low and downward pressure persists. CoinMarketCap
The same problems that crippled Steemit earlier still haunt the platform: dominance of “whales” or large stake-holders potential bot-driven content/curation low liquidity and no major new features or ecosystem growth. CoinMarketCap
The overall sentiment remains mixed: while some user-driven curatio and contests keep activity many wonde whether this is enough to attract new users or rebuild investor trust. CoinMarketCap

Henc the platform is still “alive ” but the funamentals remain fragile.

Why the Price Drop Is Not Just Temporar Its Structural

Putting all together:

The early crash severely weakened the company behind Steemit (mass layoffs cut in resources).
Governance and reward distribution flaws (whales bots vote-manipulation) discouraged genuine users and creators.
Lack of resources halted meaningful developmen no major upgrade no new features no “innovation draw.”
Poor marketing and lack of outreach kept the platform invisible to most of the crypto or content-creator world.
Large circulating supply + continuous sell pressure + low liquidity meant price declines were likely to persist.
Even today (2025) only small community-driven efforts (like contests) try to revive engagement but they are not sufficient to fix core probles.

All these point to systemic decline not just a temporary slum.

What Could Potentially Bring Steemit / STEEM Back Solutions & What Should Change

If Steemit wants to revive it needs major structural improvements not just minor tweaks. Here are what it needs

1. Revamped Onboarding & User Growth Campaign

Fix signup/verification issues make onboardng simple and reliable (OTP smooth account creation).
Introduce onboarding greters or mentors fonew users.
Launch marketing camaigns partnerships with influencers crypto-media outreach to bring in fresh users from outside the existing Steem community.

2. New Development & Platform Innovation

Build new features: e.g. better UI/UX mobile apps NFT marketplac decentralized apps (dApps) on top of Stee integration with Web3 something beyond “just blogging.”
Publish a transparent and detailed develpment roadmap so investors/users see a future.

3. Fair Governance & Reward Distribution Reduce Whale/Bot Dominance

Introduce more democratic reward systems that favo genuine content quality over stake size.
Penalize bots auto-voters or vote manipulation. Maybe implement stricter curation rules.
Encourage community-based moderation & curator decentralize content curation genuinel.

4. Active Marketing & Community Revival

Promote Steemit aggressively via social media crypto medi outlets conten-creator networks.
Encourage diversity: global users different languages niches (art education travel tec).
Bring in new content creators not just crypto-native to widen user base beyond crypto-circle.

5. Reduce Supply Pressure & Improve Liquidity

Introduce incentives for “holding” rather than forcin powerdowns.
Perhaps a staking / lock-up incentive scheme to reduce sell pressure.
Encourage real use-cases for STEEM maybe as payment in dApps marketplace or service to increase demand.

Can STEEM's Price Really Go Up Again? My View

Yes but only if Steemit undergoes a major transformation.

If the platform rebuilds properly with innovatio fair governance real marketin new users and transparen roadmap there is potential: a loyal core blockchain history and existing infrastructure might help revive value.

However without those changes STEEM may stay stuck or even decline further. Small community contests and sporadic activity are insufficient to sustain long-term growth and widespread confidence.

Recent & Historic References

TechCrunch: Steemit laid off 70% of staff in 2018 due to crypto market crash. TechCrunch
CryptoSlate: The platfor didn’t achieve expected user growth hype subsided structural reorganization followed. CryptoSlate
CoinCodex / company statements: Operatin costs toke sell returns blockchain node costs forced deep cus. CoinCodex
Academic studies: Real decentralization in Steem was far lower than ideal significant portion of rewards were captured by bots or large stakeholders undermining trust. arXiv
2025 price analysis & community reports Recent small bumps due to contests bu overall technical and liquidity outlook remains weak. CoinMarketCap