They lasted 24 hours for all coins in crypto-markets. The King of Crypto, also known as Bitcoin (BTC), has lost 5% and is currently trading at $ 6.059. Its dominance increased to 54.5% as the total capitalization of the encrypted market fell to under $ 200 billion at current levels of $ 191 billion.
A notable victim of the current decline was Ethereum (ETH). The pioneer of Smart Contracts fell to levels below $ 300 and currently trades at $ 256. The last time ETH was at this level was again in September last year. ETH fell 82% from its peak of $ 1,400 in January this year.
Even more turbulence?
Ethereum World News sought a comment from Investing.com's Senior Analyst, Clement Thibault, which summarized current events as follows:
I think we are only witnessing the continuation of the cryptocurrency bear market. This is not the first or the last cyclic element to behave this way. Bitcoin itself has seen a bearish market of 80% in the past, so it is not new even for cryptocurrency standards.
Looking to the future, I do not think we are still at the end of the cycle, and I can see bitcoins and other cryptocurrencies that continue to decline before a significant return.
So what will increase ETH in the markets?
There is only one thing that can help with the price of Ethereum (ETH) now and in the near future. There must be an agreement and the implementation of a kind of solution to the problems of scaling on the platform to further increase its usability in the blockchain world. There are also security vulnerabilities that have persecuted Ethereum from the Parity incident. These must also be corrected to prevent projects such as EOS, Tron (TRX) and Zilliqa (ZIL) from gaining ground in terms of attracting DApp developers and investors to their currencies.
The scaling solutions that are on the table for the Ethereum network include:
- Sharding – which allows splitting nodes and transactions into smaller groups
- Raiden – resizing ETH off-chain using state-channel technology
- Plasma – using a series of smart contracts to create hierarchical sidechain trees on the ETH network
One thing we should remember is that the same Ethereum platform has been the launch pad for the Tron, EOS and Zilliqa projects that are now all part of its competition. Maybe it's time for the ETH to evolve and try again who is the King of Smart Contracts.
Disclaimer: This article is not intended to provide financial advice. Any opinion here should be taken as well as it is. Perform your research before investing in one of the many cryptocurrencies available.