Alex Saunders, CEO and Founder of Nugget’s News Blockchain Channel, believes that Ethereum (ETH) is not dead.
In the last weeks, Ethereum has been losing an important part of its value at very fast rates. Indeed, it has reached the lowest dominance in the market since March 2017. Its price has also fallen down to $170 dollars, the same price as in May 2017.
However, there are some points that Mr. Saunders marks that are worth to take into account when analyzing Ethereum.
At the moment, 94 of the 100 most important projects in the market have been built using Ethereum. This shows that Ethereum is being used and that it is a successful product for other companies.
The so called Raiden Network is a scaling solution similar to the lightning network for bitcoin (BTC), that enables near-instant and low-fee payments. Ethereum has been facing different issues with its scalability, fees and transactions. During periods of heavy usage, the network was not able to process all the transactions requested. Raiden network is working in order to deliver a product and service to the Ethereum world as soon as possible.
The Devcon4 conference has already been sold out. If there is no interest in using Ethereum and build on top of it, why would the Devcon4 sell so many tickets?
A good way to increase the price of a virtual currency is by reducing the block reward. Bitcoin does it every 4 years. Ethereum will now be rewarding miners with less ETH. As demand increases at the same time that the supply decreases, the price should increase.
$ETH is not dead.
– 94 of the top 100 projects built on #Ethereum
– Lightning @raiden_network close
– #Devcon4 already sold out
– Block reward reducing
– ETH futures soon
– Dev community >250k
– #ICOs still raise in ETH
– 14k decentralised nodes
– @VitalikButerin is a genius
— Alex Saunders (@AlexSaundersAU) September 12, 2018
If this was not enough, ETH futures could soon be a reality. There are several companies in the financial and crypto world that would like to release ETH futures. The Chicago Board Options Exchange (CBOE) may soon launch ETH futures.
With more than 250,000 developers, this is the most used network in the whole virtual currency market.
Although at a lower rate, ICOs are still raising funds using Ether. This is very positive, even when the market has been falling since the beginning of the current year.
Finally, Saunders explains that Etheruem’s co-founder, Vitalik Buterin is a genius. Buterin commented some days ago that the market might not experience a 1000x increase. However, a 10x growth is still possible.
At the moment of writing, Ethereum is being traded close to $180 dollars. Its market capitalization is now $18.47 billion dollars and is the second most important virtual currency in the market.