Ethereum is a decentralized blockchain platform that enables developers to create and deploy decentralized applications (DApps) and smart contracts. It was launched in 2015 and quickly became one of the most popular blockchain platforms in the world. However, like any other cryptocurrency, Ethereum's price is subject to market forces and can fluctuate significantly. In this article, we will take a look at Ethereum's lowest price and the factors that contributed to it.
Ethereum's Lowest Price
The lowest price of Ethereum (ETH) was recorded on December 18, 2016, when the cryptocurrency was trading at just $7.98. This was a significant drop from its all-time high of $1,389.18, which was recorded on January 13, 2018. The price of Ethereum has since recovered, and at the time of writing, it is trading at around $1,672.
Factors Contributing to Ethereum's Lowest Price
There were several factors that contributed to Ethereum's lowest price. One of the main reasons was the DAO hack. The DAO was a decentralized autonomous organization that was built on top of the Ethereum blockchain. It raised over $150 million in an initial coin offering (ICO) in May 2016. However, in June 2016, a hacker exploited a vulnerability in the code and stole over $50 million worth of Ether.
The DAO hack caused panic among investors, and many started selling their ETH holdings, leading to a significant drop in price. The Ethereum community was quick to react, and a hard fork was proposed to undo the hack and return the stolen Ether to the DAO investors. This hard fork led to the creation of Ethereum Classic, a separate blockchain that continued to operate according to the original Ethereum rules.
Another factor that contributed to Ethereum's lowest price was the general market sentiment towards cryptocurrencies at the time. In late 2016, the cryptocurrency market was still in its early stages, and many investors were wary of the risks associated with investing in cryptocurrencies. This led to a general sell-off of all cryptocurrencies, including Ethereum.
Finally, there were also concerns about scalability issues with the Ethereum blockchain. As more applications were built on top of the platform, the network became congested, leading to slow transaction times and high fees. This caused some investors to lose confidence in Ethereum's ability to scale and handle the growing demand for DApps.
Conclusion
Ethereum's lowest price of $7.98 was a result of several factors, including the DAO hack, general market sentiment, and scalability concerns. However, the Ethereum community was quick to react, and the hard fork that was proposed to undo the hack and return the stolen Ether helped to restore confidence in the platform. Today, Ethereum remains one of the most popular blockchain platforms in the world, and its price continues to fluctuate based on market forces and investor sentiment.
