Cryptocurrency price crashes became the main topic of 2018, however, we were physically unable to cover each of them. What is happening today is, without a doubt, one of the hottest topics for several reasons.
First, this is a serious test for “ether” - a token issued by the Ethereum Foundation, which is currently the second-largest cryptocurrency by volume.
The price of Ethereum, which is the platform of choice for many blockchain developers, fell 17% in just one day. This is the first time that the ETH price has performed worse than last year. ETH is currently worth $266, and in August 2017 it was worth $304. The price of the token has been falling steadily since early May, when it peaked at $808.
According to Coinmarketcap, all top 100 cryptocurrencies with the exception of two lost from 10% to 25% of their value. Bitcoin's price has also fallen below $6,000, although it was worth $8,000 last month.
Ether's fall below $300 has sparked heated debate in the cryptocurrency community. The token was conceived as an improved version of Bitcoin, which allows its users to create decentralized applications and systems, however, this is not reflected in its value in any way.
The two founders who spoke to TechCrunch expressed confidence that “Ether will find price stability,” allowing people to focus on the product itself rather than the desire to get rich quick.
However, there are those who are more pessimistic.
Among investors surveyed by TechCrunch, many believe that along with the decline in the popularity of initial coin offerings, which brought the bulk of Ethereum's profits, the incentive to hold the digital asset is also being lost, especially as the general public's interest in the cryptocurrency market declines.
One Bitcoin bull believes that the intrinsic value of BTC as an immutable decentralized ledger provides far more opportunity than the volatility and centralization that Ethereum provides.
“People are starting to understand the unique value of an immutable and decentralized ledger, which Ethereum is not,” he wrote.
Another long-term problem facing Ethereum is that the promised decentralized applications supported by its token have yet to be released. The popularity of Crypto Kitties has long since faded, while competitors are using the Bitcoin Lightning Network to create similar applications - LApps - which are similar to Dapps, however, they use the Bitcoin ledger..
Of course, the cryptocurrency sphere is still very young, the market will rise and fall, however, this is the first serious test for Ether and Ethereum.
According to https://techcrunch.com
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