As the day continues, things are not looking good for the second largest cryptocurrency in the market. Ether, the silver of the pseudo gold represented by Bitcoin, has been experiencing dramatic changes in the last couple of months that even though have not been enough to move the coin to lower positions in the charts, still represent a huge change compared to the value that the crypto had back at the beginning of the year.
In this sense, it is worth to mention that according to CoinDesk the crypto has had a decrease of 90 percent compared to the value it had in January, and only today, we have seen a reduction of the 4.48% with respect to the last 24 hours, a fact that logically has many of us feeling concerned.
Ethereum has landed to the mark of $174 against the USD, and even though we are used to watching dramatics up and downs for the coins when it comes to being aligned with Bitcoin (BTC), Ether was not that apart.
However, the story is different this time, as even with the volatility of the sector Bitcoin is showing a decrease of 9% in the last 30 days, while Ether, on the other hand, shows an almost 30% of the decrease in the same period. So what’s exactly going on? As it seems, two major problems are affecting the coin. Let’s talk about them.
Ethereum’s co-founder comments on the future of blockchain
One of the things that may have been reflecting on the performance of Ether is the recent comments that Vitalik Buterin, co-founder of Ethereum, made in relation to the blockchain and what he conceives is going on right now.
Vitalik gave a declaration to Bloomberg News in which he states that the highly fruitful times for the crypto world are finally getting to an end.
He said:
“There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” so what we need to acknowledge is that “the blockchain space is getting to the point where there’s a ceiling in sight.”
Of course, as it was to be expected a declaration of this kind was not going to pass unnoticed by the community. The real question here is, how does a company expect to make their clients believe in their products while one of their most important members is preaching the end of the niche for that specific product?
The Ethereum co-founder went on to cover up his remarks but that hasn’t done any good yet though.
To be clear, I never said that there is “no room for growth” in the crypto ecosystem. I said there is no room for *1000x price increases*. A 1000x price increase from today means $200T in crypto, or ~an entire 70% of today’s global wealth being in crypto.
— Vitalik Non-giver of Ether (@VitalikButerin) September 12, 2018
We can not be sure if whether or not these declarations are influencing the price, but for sure there are high chances that people are selling their Ether holdings because of this.
ICO’s are gone as well
Ethereum has been pretty much adopted because of the platform that it provides. In this sense, Ethereum has given the cryptocurrency world the opportunity to build projects on its network. So we can all agree with the fact that Ethereum is more of a store of value than another thing, is the big computer in which all of the projects are being created, or at least, a place where the project was being created.
During last year, Initial Coin Offerings (ICOs) had an incredible boom that benefitted Ether in a great measure. However, ICOs are not being deployed anymore, especially when the Securities and Exchange Commission (SEC) clarified that even when Ethereum is not a security itself, many of the projects built on their network had security features.
Regarding this, the CEO of CoinFi, Timothy Tam, expressed:
“Retail investors were completely euphoric a few months ago. Now, that emotion has flipped, and they’re panicking,” we can all be sure that “shorts are going to ride that wave.”
Furthermore, one of the reasons why the market is acting as such is because of the pressure that short-sellers are putting in.
In this sense, according to CoinFi’s team data from their platform shows how multi-million dollar bets are being made against ether’s all-time high, and this for sure is going to have a repercussion on the price. Do you think Ethereum will manage to survive the recent conditions? Will it get by side of Bitcoin when it comes to market resistance, again? We all wish to, but in the meantime, let’s stay tuned.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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