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In the last 24 hours, the cryptography market added $ 5 billion to its valuation, showing a slight recovery from $ 106 billion to $ 111 billion. Despite the recovery of the market, Ethereum (ETH) and Bitcoin Cash (BCH) continue to lose value, both registering a decline of three percent compared to the US dollar.
On December 9th, the price of Ethereum fell about 3% from $ 97 to $ 93, failing to sustain the short-term momentum obtained by an unexpected recovery that took place on Saturday. From its daily peak, Ethereum has declined more than six percent from the US dollar, from $ 100 to $ 93.
Bitcoin Cash also showed a weakness in its short-term price evolution, losing nearly half its value over a two-week period. Since November 6, the cash price of Bitcoin has declined from $ 200 to $ 100, exactly 50 percent.
Why is Ethereum and Bitcoin going down so quickly?
The gap between Ethereum and Ripple, which recently detected Ethereum as the world's second largest cryptocurrency, has risen to more than $ 3 billion within a three-week period.
Technical indicators show oversold conditions, but the sheer intensity of the price reduction of the two cryptocurrencies has created a difficult environment for the recovery of the two assets or even the maintenance of a low price range.
It is possible that, as investors in the cryptocurrency market resort to fundamentals, cryptocurrencies that have struggled to see a significant increase in accessibility, adoption and usability are becoming more difficult than Bitcoin.
For example, as in the case of ConsenSys, the largest blockchain software company in the world, Ethereum has succeeded in creating an efficient infrastructure for decentralized applications (dApps) to a certain extent, but has struggled to see many progress in plasma, Sharding and Casper, the projects three major solutions for scaling.
The ERC20 tokens, most of which are based on Ethereum, given its dominant position in the field of smart procurement, have failed to show products that can be effectively used by casual users and the mainstream.
Seeing a clear lack of adoption of dApp and decentralized systems, Joseph Lubin, a co-creator of Ethereum and the founder of ConsenSys, said that the company will move forward and begin to focus on developing products that can be used by users in the ecosystem. .
Lubin said in an e-mail sent to the company's employees:
"ConsenSys 2.0 requires us to evaluate our efforts more rigorously, and we will try to execute leaner projects because often the best decisions are made in a context of more limited resources: scarcity sharpens the senses and forces discernment in decision making. plentitude, while perhaps a noble goal in many circumstances, should be hard won, otherwise it leads to complacency and dullness. "
Bitcoin Cash, a cryptocurrency with a large transaction capacity, has seen limited adoption by merchants who sought when it was first launched in August.
Bitcoin will survive better in the bear market
With large-scale financial institutions such as Nasdaq, NYSE, ICE and Fidelity promising to build infrastructure around Bitcoin, it is expected that the dominant cryptocurrency will continue to outperform both the major digital assets and the small cryptocurrencies capitalized in the bear market.
Shutterstock foreground image. TradingView Charts.
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