[ad_1]
Ethereum (ETH), one of the most considered cryptocurrencies on the market, reached new lows in the solar year 2018. The last time ETH was at a price level lower than $ 215 was in August 2017.
Ethereum tests new price lows
Wednesday, the value of Ethereum fell to $ 211 dollars. This has not happened since July 2017. Along with ETH, other currencies also saw the lows of the year: Cardano (ADA), for example.
In the last two days, the market has rebounded. The total market capitalization is now $ 204 billion. Bitcoin (BTC), the most important virtual currency in the market, is trading around $ 6,480 dollars.
Ethereum is one of the worst hit virtual currencies after this market decline. Furthermore, ETH has lost most of the gains earned during the bull run in recent years. From its historical maximum, the situation seems even worse. In January, the famous cryptocurrency recorded a record of $ 1,350 dollars. Since then, ETH has lost 84%.
What is creating this situation in Ethereum? One of the main reasons is related to the fact that Initial Coin Offerings (ICOs) and other projects are selling their tokens to invest in personnel and development. While the market is awaiting positive news (as perhaps on a futures market ), the Ethereum team has kept the focus on the milestones and not on the trading price.
At the end of the last year and at the beginning of this one, the number of ICO has increased substantially. Next, the projects must sell their tokens and have dollars to pay their salaries and other responsibilities. And there was not the race of the ICO this year as if it were the last time, so new money does not seem to flow into the market.
Previously, we wrote about Goldman Sachs and his decision to suspend a cryptocurrency trading desk . This situation created a massive sell-off that brought down the price of Bitcoin. In fact, BTC lost $ 900 dollars in just a few hours.
Prior to this situation, the market had a capitalization of nearly $ 240 billion. In January, this number was close to $ 800 billion. Several people were already talking about a $ 1 trillion dollar market capitalization.
The market now seems to be closer to a free fall, and ETH enthusiasts are waiting for good news to demonstrate the true value of the token.
Carlos is an international relations analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other major cryptocurrency sites; with over 2,000 published articles.
[ad_2]
Source link
