It has been a rough 24 hours for all coins in the crypto-markets. The King of Crypto, also known as Bitcoin (BTC), has dropped in value by 5% and is currently trading at $6,059. Its dominance has increased to 54.5% as the total crypto market capitalization has dropped below $200 Billion to current levels of $191 Billion.
One notable casualty of the current decline has been Ethereum (ETH). The pioneer of Smart Contracts has slid to levels under $300 and is currently trading at $256. The last time ETH was at this level was back in September last year, 2017. ETH has dropped 82% since its peak value of $1,400 back in January of this year.
More turmoil Ahead
Ethereum World News sought a comment from Investing.com Senior Analyst, Clement Thibault who summed up the current events as follows:
I believe we’re just witnessing the continuation of the cryptocurrency bear market. This is not the first or last cyclical asset to behave this way. Bitcoin itself has seen a 80+% bear market in the past, so this is nothing new even by cryptocurrency standards.
Looking ahead, I don’t think we’re at the end of the cycle just yet, and I can see bitcoin and other cryptocurrencies continuing to fall before a meaningful return back up.
So what will boost ETH in the markets?
There is only one thing that can help with the price of Ethereum (ETH) now and in the near future. There needs to be some agreement and implementation of some sort of solution to the scaling issues on the platform to further boost its usability in the blockchain world. There are also the security vulnerabilities that have haunted Ethereum since the Parity incident. These too need to be fixed to prevent projects such as EOS, Tron (TRX) and Zilliqa (ZIL) gaining ground in terms of attracting DApp developers and investors to their coins.
The scaling solutions that are on the table for the Ethereum network include:
- Sharding – that allows for nodes and transactions to be divided into smaller groups
- Raiden – scaling ETH off-chain using state channel technology
- Plasma – using a series of smart contracts to create hierarchical trees of sidechains on the ETH network
One thing we should remember is that the same Ethereum platform was the stepping stone for the projects of Tron, EOS and Zilliqa that are all now part of its competition. Perhaps it is time for ETH to also evolve and prove who is King of Smart Contracts once again.