Why is Ample’s Price So Volatile?

One of the recurring questions people have about Ample is: Why is its price so volatile? Isn’t Ample supposed to be a stablecoin?

Well, first, Ample is not a stablecoin (as the video below explains).

Second, while Ample will eventually — as its market cap expands, — stabilize around its peg of the 2019 U.S. dollar, at this point in its life cycle Ample is meant to serve as a speculative asset, and have periods where it expands and contracts in supply.

However, as additional use cases for Ample come online, Ample will eventually stabilize in price. One of the goals of the AmpleSense DAO is to help to accelerate the development of products, services and applications for Ample, increasing organic demand for the asset, and tilting use cases away from pure speculation (see image below).

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