The price of Ethereum falls by 85% in seven months


The second glide of the largest cryptocurrency is deepening as a very high number of signals of short positions. The traders bet that the pain is not over yet.

Ether from Ethereum had an impressive rally, jumping from under $ 10 in early 2017 to $ 1,300 in January, according to CoinMarketCap. The fall was just as spectacular as the digital currency lost 85% from its peak in just seven months, drilling $ 200 on Monday, while short positions on the Bitfinex cryptocurrency trade rose to its maximum.

Regulatory uncertainty, disappointment of the traditional adoption of cryptocurrencies has been slower than expected and concern that institutional investors are becoming cold, contrary to last year's expectations of being almost ready to jump, to weigh on Ether and on the wider market. One of the differences to the token built to run the so-called Ethereum World Computer is that some of the startups who used it to raise money started to cash out.

Startups have spent 119,000 Ether in the week ending August 29, most since January, according to data compiled by the research company Santiment.

Ether Piles

Still, other analyzes show that many startups are still holding most of the funds they have collected. The research company Diar Ltd. analyzed 50 projects and found that they held 3.7 million Ether in August, slightly lower than the 4.5 million in April.

The chief analyst Diar Larry Cermak said the data show that ICOs are selling most of their Ether status exaggerated. But for some this is a negative sign because it means that startups have enough resources to potentially bring down the price.

Another source of concern for the future of Ethereum is if researchers and developers working to increase the capacity of the network will be able to do so in time to beat growing competition. Ethereum now manages about 15 transactions per second, compared to Visa 45,000.

Privileged Platform

Ethereum is the platform in which a large majority of decentralized applications are built and the ICOs to finance them have helped fuel the last year's cryptocurrency boom, while traders crowded to buy the hundreds of new coins digital sprouts. But very few of these applications have acquired traditional adoption and most have not even released a product. A report by the Satis Group at the beginning of the year said that about 80% of ICOs were final scams.

Vitalik Buterin, who wrote the original Ethereum white paper in 2013, expressed his dissatisfaction with the lack of real applications for blockchain projects, and in an interview with Bloomberg New he said that a & # 39; further growth of the cryptocurrency should derive from the actual use.

Based on Ether's prices, the market seems disappointed as Buterin.

 Worse than Bitcoin

Now read: The US judge states that ICOs are covered by the securities laws

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