As anyone who has been keeping even the laziest of eyes on the crypto market will be aware, it has been consistently falling during the last week. Practically the whole market is in red, with very few exceptions, according to coinmarketcap.com.
The father of all digital currencies, his majesty bitcoin saw a drop from a rather comfortable $7,200 at the beginning of the week, to a less than exciting Sunday $6,200.
But the bearish market almost seems to fade in comparison when hushed voices begin to discuss ethereum’s drop below $200.
Over the last 24 hours ethereum lost over 12% in price, and over the week ETH dropped from just under $300 to $190. Last time ethereum cost below $200 was back in July 2017.
The market cap of ethereum dropped from over $30 billion to $19,5 billion over seven days.
News such as the intended opening of ethereum futures trading on the Chicago Board Options Exchange (CBOE), which some analytics regard as a potential threat to the price of ETH, and quite the opposite for bitcoin, might have influenced the fall of ethereum.
Also, an article published by the developer of bitcoin core and the tech consultant of stellar, predicting that if ethereum sees more mainstream adoption it will lead to the surplus of the token on the market, and hence to the coin’s collapse. In answer to this statement, Vitalik Buterin shared that the devs are working on measures to ensure the relevance of ethereum.
Finally, Buterin commented the industries situation, claiming that: “The blockchain space is getting to the point where there’s a ceiling in sight,” meaning that a substantial number of people are aware of blockchain, and from this, it can be concluded that crypto will not be able to grow thousandfold as before.
Whether it was a coincidence or not, after Buterin’s statement on Saturday, the price of bitcoin went down almost $300, dragging the rest of the market with it.
WHY IS THIS IMPORTANT?
- Ethereum is a smart contract decentralized platform and the second large cryptocurrency on the market. However, it is much more than that, it is a network with its very own payment system, internet browser, and coding language. But the important thing that the network permits its users, is the creation of decentralized apps on the ethereum blockchain.
- The new low that ethereum hit is a warning sign that not everything is going smoothly in the kingdom of ethereum, the ether community must now hope that the new hard fork update will turn the falling of ETH.