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The capitalization of cryptocurrency is reduced to $ 186 billion

Wednesday, the collective market threshold for all cryptocurrencies has fallen to $ 186 billion – the lowest level this year, and the lowest since November 2017.

This is a long, painful decline for the crypted market from the January peak of $ 831 billion, and while everything is possible in the crypt, currently there is no end in sight.

Bitcoin, the largest cryptocurrency by market capitalization, is actually holding up well, priced at $ 6,281 at the time of writing, representing a loss of 1.91% in the last 24 hours according to CoinMarketCap. This is also far from its January peak of over $ 19,800, but Bitcoin has stubbornly refused to fall below $ 6,000 this year, bouncing from that level on several occasions.

But other cryptocurrencies, notably Ethereum, the second largest currency by market capitalization, are losing value at a tremendous rate. At $ 172, down 11.6% in the last 24 hours, Ethereum has reached a new low this year. Just a month ago, the price of an ETH was almost double; two months ago it was almost three times that amount.

  The long and painful fall of Ethereum.

The long and painful fall of Ethereum.

The reasons for the decline in prices have not changed much since last week: institutional investors, banks and regulators are still wary of cryptocurrencies, perhaps more so in recent months. And many start-ups that have raised a lot of money through an ICO (initial offer of coins) on the Ethereum platform, are now selling it for legal tender, which creates a price pressure.

This list, compiled by Diar, shows some of the best known startups funded by ICO and the amount of ETH still in their portfolios. Lately it has shrunk to an increased pace, but there is still a lot to sell. The authors estimate the total to around 3.5 million ETHs, which are worth just over $ 600 million, but the actual number is larger, as numerous successful startups funded by ICO are not included in the list.

Vitalik Buterin, the co-founder of Ethereum, was recently quoted by Bloomberg in saying that there is a "ceiling in sight" for cryptocurrencies and that "there is no" opportunity " for another 1,000-fold growth in something in space anymore. "This may have contributed to the general negative sentiment towards Ethereum. Buterin later clarified his comments on Twitter, saying that his words were misinterpreted.

Other major cryptocurrencies are not doing well today: Ripple drops to $ 0.26, down 3.7%; Bitcoin liquidity trades at $ 422, a 10.4% decrease, while EOS is at $ 4.86, down 2.6%. The coin club with a market capitalization of more than $ 10 billion has shrunk to three (there were more than ten at various points in the history of encryption): Bitcoin, Ethereum and Ripple, with the last to be on the point to abandon.

Accordingly, the "dominance" of Bitcoin, ie the percentage that it represents in the total cap of the market, has jumped to 57.8% according to CoinMarketCap. In March 2017, before the strong rise in the price of Ethereum and other alts (ie coins that are not Bitcoin), this number was higher than 85%, but then other cryptocurrencies started to rise and push down the Bitcoin domain. At this time, although the entire cryptography market is shrinking, Bitcoin is effectively re-establishing its dominance over all other currencies.

The future for Bitcoin, Ethereum and the rest of the cryptographic market is uncertain. The downward trend could end if the SEC decides positively on some proposed Bitcoin ETFs; a negative decision or a further postponement (the decision is currently scheduled at the end of September) would probably mean a further drop in the price.

Disclosure: The author of this text has or has recently owned a number of cryptocurrencies, including BTC and ETH.

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