Ethereum has held its rank as the second top cryptocurrency by market capitalization for a few years now. Despite its market cap, Ethereum’s price has been on a downward spiral since the second week of January 2018.
It has shown close to no signs of recovery and better part of the community is slowly losing interest in Ethereum. While most cryptocurrencies, including Bitcoin, have experienced price drops in the past, Ethereum has been experiencing a lot more inconsistencies than others. There is a rift in the development community and disagreements have become commonplace.
Ethereum’s price has dropped by 54% in the past one year and this has erased billions of dollars from its market capitalization.
At its lowest, Ethereum hit $84.66 in December 2018 but has recovered, trading around $211 at press time.
Ethereum’s purpose was not to replace Bitcoin. It was built to deploy cutting edge applications and eventually take over the DApp ecosystem. The Ethereum Foundation is on track and has been consistently scaling this solution and upgrading the platform. Its smart contract functionality gets better with every upgrade. There are more people and institutions building on ETH than any other cryptocurrency ever, and as the ecosystem grows more projects will keep coming up.
The potential for Ethereum DApps and smart contracts to be applicable and deployed for greater development has caught the eye of governments and institutions, but here we are with the main core of speculation about the fall of Ethereum and its direct comparison to the stock market and the price of Bitcoin.
At the moment, the price movement of Ethereum cannot be compared to the stock market because cryptocurrencies are a unique asset class that is more volatile in nature and experiences rapid and significant growth, unlike traditional stocks, yet, for the longest time, Ethereum’s scalability problem was the greatest challenge for its adoption.
Ethereum does not scale with its current implementation. This has led the crypto community to believe that Ethereum will fail, sooner or later.
Some believe the future for Ethereum is bright and it will be built on a new infrastructure with greater valuation. While the focus of the crypto community is on prices, Ethereum’s solutions to the scaling problem like lightning-style ‘off-chain’ transactions will make it fast and nearly limitless while still not requiring users to trust a central authority. Ethereum may look like its dying, but in my opinion, it is here to stay.