The second largest cryptocurrency by market cap took a hit again and now it got at least 82 percent down from the last year’s high. In just 15 days this month, Ether fell by a surprisingly (and not in a good way) 44 percent reaching its lowest point by getting lower than the $300 mark for the first time since last year in November.
This comes as a surprise for many users, experts and observes because Ethereum’s platform is the most used one in order to build applications and many ICOs still continue to function on this platforms rapidly but also many other projects are still conducted on this platform. It’s exactly why people still can’t figure it out what is killing Ether’s price. The platform even has improved its qualities since last year. Some believe that the decline can be triggered by the decline in sentiment in the crypto community.
Maybe because last year, many of the cryptocurrency funds that were established in 2017 didn’t really attend the crypto boom is the reasons why investors are being dismissive about Ether. Also, ICOs may have contributed to undermining Ether’s function as a currency. Traditional banks play a role in these happenings because if they embraced crypto faster, the SEC maybe would have given approval of the cryptocurrencies and everything could’ve played out much better.
Ethereum strives to become the first global computing platform but investors such as Tetras are deeply worried that a market cap of $48 billion is not justified. That is because ethereum cannot make handle more than 15 transactions per second. ‘’As long as Ethereum doesn’t fix their scalability issues it is highly unlikely they will succeed’’ says Tetras CEO, Mr. Young. He also stated that ‘’ Just because something is a good idea, doesn’t mean it’s a good investment’’.
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