It appears the nosedive of Ether is far from ending soon as the crypto dropped to its lowest point ever in 2018. With its digital assets currently valued at $180.60, Ether’s total decline this year alone has now reached 76%. As such, the ever-supportive investors of Ether are beginning to express the loss of confidence in the cryptocurrency.
Trying Times For Ether Cryptocurrency
Just this last Tuesday, Ether cryptocurrency went down again in what can be described as the lowest ever this year. The second largest cryptocurrency in the world has been experiencing turbulent times for nine months now.
The price of the crypto’s digital assets went down to 7% and that has put its total fall for the year at 76%. According to CoinDesk’s data, from $770 which the cryptocurrency began in January, it has now dropped to as low as $180.60.
Consequently, many investors are beginning to lose their enthusiasm for Ether. Granted, frontline adoption is not yet here but it is now possible for investors to withdraw their support from the market. Unfortunately, the hopes of the blockchain to top the developers’ platform may just be on the line.
About Ether Cryptocurrency
The cryptocurrency is popularly known as Ether although it has a strong link to the renowned Ethereum cryptocurrency. Ether is, however, not like Bitcoin which gives a financial network that is global to its users. Ether, on the contrary, permits only a computer network.
Many have compared the usefulness of this crypto to the gasoline used in a car. That is because developers are able to use tokens from Ether to “fuel” some of their blockchain functions.
Likely Reasons For Ether’s Fall
Some analysts have attributed the abysmal fall of Ether to the decline in the crypto’s coin offering that was hinged on Ethereum. As a result of this decline, a lot of people have had to sell a substantial portion of their holdings so as to be able to manage expenses and cash flow. Joe DiPasquale who is Ether’s CEO had said that:
Ether’s price was inflated earlier due to the ICO mania… As people pledged Ether with ICOs, the supply-demand equation got skewed – now ICOs have cooled down, and hence the setback.
Granted, Ethereum came out first. But as things are currently, Stellar and EOS are looking so well-positioned to outsmart it. And what’s more? Ether is still battling with short-sellers. At the beginning of this year, BitMex which is a peer-to-peer platform invented one swap product that makes it possible for investors to bet against Ether. In many analysts’ opinion, this contributed in no small measure to the crypto’s dampened prices.
When compared to its last year performance, it can be concluded that Ether has hugely derailed. That is because, in 2017, investors were enthusiastic about Ether’s utility when placed side-by-side with Bitcoin. Bitcoin was disfavored by investors because of its inability to be used in building blockchain applications.
As of last year when the price of Bitcoin reached $20,000, Ether still remained the more preferred. Throughout last year, Bitcoin progressed to a 1,318% increase while Ether’s increase was 9,162%. It grew from $8 in January and closed at $756 in December. But now, the opposite of what happened last year is what Ether is experiencing now.