Ethereum (ETH) Turmoil: What’s The World’s Second Biggest Crypto Catalyst Going To Be?
It's been both a tough 24 hours and an entirely rough series of weeks for the cryptocurrency world. The proclaimed ‘King of Crypto' otherwise known as Bitcoin, has been one of the unfortunate numbers to go on a backward slide, falling by as much as 5% over the course of today.
Currently, Bitcoin has fallen below its previously strong lower supports to trade at a value of $6,059 with the possibility that it'll fall further. It's not all bad news for the ‘king', however, because as the total market cap of the cryptocurrency space fell below $200 billion to finally hit $191, its dominance of the market grew to 54.5%.
One of the other unfortunate victims was Ethereum (ETH) which is unfortunately still taking blows in trading today. While it has a significant amount of companies attached to it through its blockchain, that didn't stop its value from falling below $300 and trending towards $256 in its worst performance since March 2017.
This becomes an even more gut-wrenching figure when you consider that, when compared to its January high of $1,400, that equates to a total value loss of over 82%.
Critical Question – Is There More Turmoil Ahead?
It's the question that's on a lot of people's minds at the moment, and that's whether or not the current bearish trend has reached its conclusion, or if there's more to come.
According to the Senior Analyst of Investing.com, Clement Thibault summarized the current cryptocurrency landscape 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 an 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 If It's Not Over, What Will Give ETH A Necessary Boost In The Markets?
That's the million (Or Billion) dollar question, and it's one that many believe Ethereum has been dawdling towards for some time, and it represents the only thing that could not only balance out ETH, but help it to re-ignite a bull run for it.
There needs to be some level of agreement or consensus on what is to be done in terms of a solution for Ethereum's ongoing issue with scaling. Depending on how possible it is to find a meaningful and effective solution for this issue, it would increase its rate of effectiveness of existing users and give Ethereum a major boost for new developers.
One of the other matters that does come up is the matter of security and how it can go about solving this.
This has been a point with a major sting ever since the Parity incident. These two outstanding issues would need to be resolved if it wants to put the bull back into its market, while also helping to stop the likes of EOS, TRON (TRX) or Zilliqa (ZIL) from taking the initiative and gaining ground against it.
Currently, Ethereum has a choice between three options when it comes to probable solves for the Ethereum Network:
- 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
It's important to note that Ethereum as we know it is what began as a stepping stone for the projects of Tron, EOS and Zilliqa that are all now part of its competition.
Now is the time for Ethereum to move away from being known as the origin of these rivals, evolve and take the fight to these upstarts, regaining its crown as the king of smart contracts once again.