The link between Hive and Leo is actually inverse. If Hive is going up, Leo, in theory should be heading down since it is priced in Hive.
The reason why wLEO benefits from the run up in price of ETH is because of the liquidity pool. When ETH increases, it makes the pool more valuable, meaning the price of wLEO in the pool increases since they are tied together.
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Thanks for the clarification, so as long as ETH is running up, and wleo follows behind, Leo too will balance out after them. Sweet!
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So is it the reason why Leo declined in price because Hive surged?
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According to Tasky and Bitcoinfloods comment, it seems so
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This you have told me before lol when I had the same thoughts with a high Hive price relating to the tribe tokens. I always thought that if Hive was $10 and your token you held was at 0.2 and suddenly dropped back to 0.02 due to the price hike you still held more value because it was backed by Hive.
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Well, we are about to watch it live now, we'll see how that goes. I'm excited either ways
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I don't think HIVE and LEO are in any way tied. LEO has had days in a row when it appreciated and HIVE barely moved. Now you have both of them performing for a good amount of time. It's clear though that LEO is following ETH.
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nice insight
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