The last decline in ETH prices is the result of a market correction, as all the first twenty altcoins have lost almost 5-10%, bringing the total capitalization to below $ 200 billion .
The cryptocurrency market entered a major correction on Monday, losing more than $ 10 billion in market capitalization. Although the market correction is widespread in all sectors, all eyes are on Ethereum which has slipped below $ 200 once again. At the time of the press, Ethereum traded at $ 197.82, losing almost 10% in the last 24 hours.
Last week, on September 12, Ethereum reached the minimum 2018 to $ 170 with a market capitalization of less than $ 20 billion. Most analysts have predicted that the fall was caused by a sharp decline in ICO activity over the last few months. Joe DiPasquale, CEO of the hedge fund cryptocurrency fund BitBull Capital, said:
"The price of Ether has been inflated earlier because of the ICO mania because people have promised Ether with ICO, the demand-supply equation has been distorted – now the ICOs have cooled down, and then the bar of arrest. "
However, the second half of last week proved to be quite interesting as Ethereum gained 35% reaching a maximum of $ 228. A huge buying interest sustained this price surge as the ETH daily trading volume reached a new record in the last 12 months. Unfortunately, this could not last long, since the second largest cryptocurrency in the world has returned below $ 200.
Ethereum is not the only digital currency that is facing the weight of the current correction of the market. Almost all twenty-twenty athletes lost on average 5-10%. Even the competitor of Ethereum and the fifth largest cryptocurrency by market capitalization – EOS – lost almost 10%. Other popular altcoins such as Litecoin, Monero, Cardano, Dash and others have lost more than 7%.
The development of Ethereum Blockchain leaps forward
Although the ETH price movement remains disappointing so far during the year, developers continue their progress on blockchain scalability. Last week at the ETH hackathon in Berlin, blockchain researcher Vlad Zamfir presented a demonstration of the Sharding protocol.
Sharding is the second-level scalability solution of Ethereum with the goal of reducing the load on the Ethereum network. Although the proof-of-concept code is currently under development, it sets a new framework for further progress on Sharding.
Also, at the beginning of this month, Rocket Pool's senior blockchain developer – Danner Langley – unveiled the roadmap for Ethereum 2.0. In the roadmap, in addition to scalability, Langley also focuses on other important issues of efficiency, sustainability and flexibility. Langley explained all the important changes going on with Ethereum 2.0 as Proof-of-Stake (PoS), eWASM and others.
Restructuring the entire infrastructure of the Ethereum network is certainly a major challenge for developers. The Ethereum network is ready for the update of Constantinople in the next month. As part of moving its consent protocol to Proof of Stake (PoS), the developers of Ethereum have previously announced their plans to reduce the 2ETH mining block premiums, and further postpone the "difficulty bomb"