Ethereum has experienced a “price crash” corresponding to a significant 80% loss of its all-time high value. Its “remains” now settles at the 200 USD corridor. Does this spell DANGER for the future of this crypto “big boy”?
There have been speculations immeasurably more than actually expected about cryptocurrencies in general. Major game changers in the financial industries have even overtly declared cryptos as being scams and don't feel like the "real deal"-- They don't feel like the typical currencies.
One of the most talked about aspects of these electronic currencies is their market movement and value flexibility. They are too volatile, many would say. The US Dollars (USD), for instance, has had a major stability in the past 365 days and not moving beyond a negligible plus or minus 0.5% perimeter of its current price. Many believe that a typical currency is much likely to behave this way, otherwise, it is reasonable to conclude that there are vivid market manipulations and as such, wide adoption would not be encouraged. Digital currencies (cryptocurrencies) on the other hand, behave more radically and price movements are often amoebic and shockingly instantaneous. To surge up or down the chart by a thousand per cent (1000%) within few months, weeks or even days is not new in the system. It either leaves a grin or gnash on the faces of the investors.
Brief study
Ethereum is the second biggest cryptocurrency as of now. At present, it is the second most widely adopted, recording a total market capitalization immediately after the "king crypto"; Bitcoin. ETH, as it is widely referred to has recorded quite a history within the crypto space and brought about considerable monetary and financial motivations and technological advancements. Its Blockchain too, is perhaps the most widely respected in the space. Considering the circumstances surrounding the Ethereum rise to stardom and the corresponding "hero fall" it has experienced over the months, it can be deduced that the dramatic market traction recorded by this highly controversial digital currency is less spontaneous and distinct in direction.
The rise and fall!
Starting out as a technology with an innovation where other cryptos could employ the use of its Blockchain, Ethereum quickly climbed up the ladder of success at an incredible speed and excessive hype. Touching an all-time-high of around 1.1k USD per unit of the currency in Dec. of 2017, much more Ethereum-based cryptos sprang up suddenly and caused a shaking in the crypto space as there were thousands of new ICOs being published on ICO-listing platforms with 92% conforming to the technicalities of the Ethereum Blockchain.
Cryptocurrencies total market capitalization soared high up amongst their contemporaries and Ethereum came to limelight with so much expectations from crypto enthusiasts. However, as time rolled by, high expectations became much of "just fantasies", start ups now consider other Blockchains like that of NEO, and as though it were exhausted, price has fallen drastically and ETH is currently trading at a price that represents more than 80% decrease of its all-time-high.
What to expect
Speculation around Ethereum has always been based on its price. It should be noted that Ethereum as a Blockchain is still very much alive and has recently taken steps to adopting the proof-of-stake (PoS) algorithm. The question of weather or not Ethereum is slowly dieing is a matter of development. Actually, the right question would be weather Ethereum has a chance of recovering its lost glory. In this wise, Ethereum is a digital currency with a bright future. Millions of crypto traders and wallet holders still prefer to use the ether wallet compared to other alternatives because of its ease of use, security and almost zero transaction charges. In the long run, Ethereum, at this rate of recognition and use, will finally find its way back on track and eventually, would make the currency many aspire it to be.
