Will the collapse of Ethereum continue?



At the time of writing this article, cryptography markets are undergoing the usual decline as we move from weekend to week. The weekends are historically known for their low trading volume, so it was a surprise when Ethereum (ETH) managed to dig out a hole from his Wednesday level of $ 171. The weekend was supposed to cause a further drop dell & # 39; ETH. But he survived the weekend just to start falling yesterday, Monday, September 17.

The King of Smart contracts are currently valued at $ 199 and once again appears to retest more levels under $ 200 with the additional FUD that the ICO were collecting their funds due to a bear market. This last entry might be true, but ICOs can not be accused of wanting to pay employee salaries, pay operating costs and even buy office coffee. These are the regular costs of running a boot. In fact, Ethereum should be flourishing if they are paying their expenses using the digital asset. Many crypto-space employees prefer to actually be paid for in encryption.

But we are digressing. The first evidence that the collapse of Ethereum could continue is the fact that it lost all the big gains obtained last week and the weekend. Once upon a time, we all thought $ 250 was a possibility.

There could be hope behind the corner for its problems of network congestion could be a thing of the past with the first demonstration of sharding in Berlin the past week. Sharding is a concept of dividing the processing of transactions between fragments or groups of nodes in the blockchain network. This therefore means that a transaction does not have to be validated by the entire network to thereby increase the throughput of the Ethereum network.

Vlad Zamfir, the main developer of Ethereum who demonstrated sharing in the network at the EthBerlin event last week, had this

We are still working on integration but let's go back in a week and should be something where we have instructions and you can follow the instructions and make it work on your computer.

Why Sharding Important

We need to remember that the main reason why many traders were putting an end to Ethereum in the markets and expected it to fall, is the fact that it is slowly eclipsed by faster networks like EOS, Tron and Zilliqa. The transactions carried over to the second (tps) – or throughput – of these networks are as follows:

Ethereum is clearly delayed. And with more DAPs being created for the financial and gaming industries, we understand why transaction time is faster. With sharding on Ethereum, HODLers and traders can once again reignite their bullish feelings on ETH.

Another reason why the collapse of Ethereum will probably continue is the fact that the recent comments of many crypto-experts who confidently declared that the recent decline of the Bitcoin to $ 6,200, it was the last before a total market recovery, it could simply be wrong. One of these analysts and experts is the former fund manager and billionaire investor, Michael Novogratz, who had this to say in a [13459015] tweet of September 13 :

I think we put a point weak yesterday. retouched the highs of the end of last year and the point of acceleration that led to the great rally / bubble … markets like going back to the breakout … we went through the whole bubble.

Looking once again at the rankings, BTC is currently valued at $ 6,290 and seems ready to sink a little further as we approach the September 30 SEC deadline for the CBOE-sponsored Bitcoin ETF. If the story passes, the chances that the SEC approves are scarce and we could be in charge of hard times that will include Ethereum leaving others in the markets.

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Disclaimer: This article should not be taken as and is not intended to provide investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. The author is long Bitcoin. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.

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