Ethereum (ETH) Is Not Dead. Current Crypto Gambling Events Could Be A Catalyst to Implement Scaling Solutions.
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.
Crypto ICO Report 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.
NANO and XVG Lead a Pack of 14 Alt-Coins Rebounding With a Vengeance
The crypto-markets have regained some much needed volumes with the total crypto-market capitalization going back to levels above $200 Billion and currently at $205 Billion. Bitcoin’s (BTC) dominance is still much above half this value and at 53.6%.The King of Crypto is up 4.32% in the last 24 hours and is currently trading at $6,383.
With a stable Bitcoin above levels of $6,000, comes the resurgence of Alt-coins in the markets that has been led by a pack of 14 coins and tokens showing impressive gains. A better visual of the situation can be found below:
14 Alt-coins showing impressive gains in an unsure market recovery.
Coin Values Still Too Low
However, these prices are still low when we observe that the total Crypto Gambling market capitalization stood at $255 Billion before the SEC announced they’d be delaying their decision as to whether they will accept the rule change proposed by the CBOE sponsored Bitcoin ETF. Since then, the total crypto market capitalization dropped to its lowest yesterday, August 14th when it was valued momentarily at $189.8 Billion. At that moment, the crypto markets had contracted by 25.5% since the SEC’s announcement to delay the ETF.
This then explains why we are seeing some of our favorite coins doing double digit gains as they try to recover to levels witnessed before the SEC announcement that has been described by some as a small ‘Extinction Level Event’.
Ted Rogers, the president of the cryptocurrency infrastructure firm Xapo, was the first to point this out via twitter when he stated the following:
We could be in the midst of the extinction-level event for “cryptoassets” that many maximalists have predicted. 90%+ of @CoinMarketCap list will disappear eventually – might as well happen now. Meantime, lower BTC price means incredible opportunity to buy more #bitcoin.
Mr. Rogers’ comments might not go down well with a few alt-coin believes given that the crypto-markets have shown to function using different variables as those seen in traditional markets. A drop by 90% in less than a year could be an indicator of an incoming Bull run.