This year end has not made the cryptocurrency industry happy
This year end has not made the cryptocurrency industry happy at all.
Most of the cryptocurrencies have fallen, from their erstwhile positions in the beginning of the year.
The falls have been spectacular and the bubble has burst.
Amidst this chaos, the popular cryptocurency Ethereum too, has fallen victim to great tragedy.
Having lost out to Ripple over the second position on the ranking list of cryptocurrencies, Ethereum has been trying to nurse its wounds.
However, it keeps succumbing to new injuries. The price of Ethereum continues to go down as the days pass by. But why? Let’s figure it.
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Price Analysis
If you look at the chart below, you can clearly see the massive price drop that Ethereum has experienced since the beginning of the year.
Source: CoinMarketCap[/caption]
Currently trading at $118.78 USD, the cryptocurrency has seen a dismal 84.2% downfall in its price in the market, in 2018.
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Reasons For Downfall
The price of Ethereum has seen a shocking erosion due to a number of reasons, one of them being the fake ICOs run on the Ethereum blockchain.
The Ethereum blockchain is extremely well known and widely used. But the more people know you, the more you are vulnerable to attacks.
A lot of fake crypto projects have been run on the Ethereum network, which has adversely affected its market valuation.
Added to that, the low rate of Initial Coin Offerings and the tightening of regulations around them have led to a decline in the value of Ethereum.
Also the fact that Ethereum lost out to Ripple in the rat race, did not serve it well. Investors starting losing faith and selling of their Ether tokens.
This fuelled the crash of Ethereum’s price in the market.
With the current slump in market, miners too have relinquished their mining operations, since it is not profitable anymore.
So these hosts of reaosons are clearly forcing Ethereum’s price to go down and say down. If at this point you are asking, Will Ethereum Price Rise Again?, we have no answer for you.
However, we can hope for the best in the year to come.
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