Brilliance may have come out of the second biggest cryptocurrency in the world, but as Ethereum leads markets to the lowest levels this year, important mainstream developments mean that there remains still optimism for the long-term future of the crypt.
Ethereum The ETH token lost 26% the week after falling to $ 170 on Wednesday, the lowest level since July 2017. At the time of writing the ETH had recovered marginally and had traded around the band of $ 190. From its all-time high of around $ 1,400 in January, Ethereum has touched 86% of its current level.
The decline was largely attributed to initial offers of coins (ICO) who raised funds this year in the ; ETH. These funds are now cashed, which has seen the flooded market of Ethereum, which has lost value. In more general terms, this was also the result of the general crunching of the cryptographic market which also lost more than 75% from its January peak.
Ethereum is different from Bitcoin because it is more a software platform than a direct currency. Touted as a world computer, Ethereum allows decentralized applications (dApps) to work on its blockchain using smart contracts. These are programmable digital contracts that are immutable and untrustworthy. Applications for technology are unlimited, but current market conditions fail to reflect it.
The bitcoin on the other hand is a pure reserve of value. It is no stranger to these huge booms and busts that have had over 80% of accidents during their ten-year duration and recovery from all of them. Bitcoin is currently overcoming the storm, while its dominant market position continues to rise at the expense of Ethereum and other altcoins.
A number of mainstream media have compared the crypto crumble of this year with the point-com crash of 2000. In fact, a lot of money was lost then but they also generated the new technology giants that are now worth billion.
Crypto is an embryonic industry that will surely have to go through many other periods of extreme volatility before it can become a commonplace as the internet is today Several key recent developments have been positive for the industry, however, despite speculators and economic operators appear to be on the market only for one dollar.
Wall Street is paying attention with Citigroup and NASDAQ seeking to launch cryptography and product tools. The Gemini exchange based in the United States, owned by the Winkelvoss brothers, has become fully authorized and will launch its own stablecoin.
The EU commission stated that cryptography is here to stay, the Ethereum futures and the exchanged funds markets could be launched early and in particular, these incidents have happened before. Crypto is thus starting a boom year followed by a year of bankruptcy
It may not be ready to be taken into account for traditional adoption and daily use, but many in the industry say that these developments show that time is approaching.