Ethereum Hits A New Bottom for 2018 As Cryptocurrency Markets Bleed
Things are absolutely not going well for Ethereum investors as supports, as ETH price makes a new bottom today. ETH has plunged by more than 7% today and is currently trading at $172 with a market cap of $17.5 billion.
The ETH price-fall has been catastrophic over the last ten days as its value gets eroded by more than 40% in this time. The price erosion has been brutal since the beginning of 2018 as ETH has lost moe than 80% of its value so far this year.
One of the major reason for ETH’s heavy downfall is the growing failure rate of Initial Coin Offerings (ICOs) that were built on the Ethereum network using the ERC-20 standard. Additionally, other potential alternatives like Stellar and EOS blockchain networks are giving a tough competition to Ethereum to host decentralized applications.
On the other hand, Ethereum’s progress with its scalability solution ‘Sharding’ has been relatively slow with many investors now moving away from the platform. In comparison to Bitcoin, investors had huge expectations from Ethereum especially because of its ability to host other decentralized applications on its network. However, things don’t seem to be going quite well for now.
Today’s fall is not just limited to Ethereum as we can the the overall cryptocurrency market bleeding heavily. The overall cryptocurrency market valuations have dropped to $181 billion as major altcoins like Ripple, Litecoin, Bitcoin Cash and others lose their steam.
Over the last week’s market correction, all these cryptocurrencies have lost over 30% of their valuation. The overall cryptocurrency market valuation has dropped to $181 billion and the market bleeding can possibly continue further.
One good thing to be observed is that despite of a huge market correction, Bitcoin has remained relatively very much stable. Bitcoin’s price is down by less than 1% when other altcoins are seen correcting by 5-10% on average.
Bitcoin is currently trading at the levels of $6200-$6300 with little movement in the either direction. Moreover, with the altcoin market dropping heavily, bitcoin’s dominance continues to grow in the cryptocurrency space. Out of the total $181 billion market cap, Bitcoin alone has a $108 billion market cap which accounts to nearly 60% of the overall market valuations.
It looks like investors are finding a safe haven in Bitcoin, as they continue to lose confidence in other digital currencies.