Ethereum Hits a 12-Month Low as the Cryptocurrency Market Retreats

via SimpleFX.com
Voyager
Voyager

Despite the amount of capital raised by initial coin offerings (ICOs) in 2018 already surpassing the full year of 2017, investor and project interest in the highly volatile form of fundraising is beginning to cool as the macro environment continues to be unforgiving for cryptocurrencies.

These factors have resulted in a major drop in the price of Ethereum (ETH), the largest blockchain for ICOs, which has sent ETH to its lowest point in over 12 months. Currently, ETH is trading at $225.64 with a market cap of $22.96 billion, down significantly from its peak of more than $1,330.

While investor interest is clearly at a relative low, the project continues to make significant strides towards its development and larger adoption.¬†The core developers revealed last Friday that they plan to¬†delay the upcoming “Difficulty Bomb,” that will promote the transition from the blockchain’s proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS). Now, the team plans to wait 12 months while reducing the block rewards with the upcoming Constantinople fork to 2 ETH.

More recently,¬†tech giant¬†Google¬†(GOOGL) made the Ethereum database available to the public for analysis in Google BigQuery, the company’s¬†web service that enables interactive analysis of massively large datasets. This makes Ethereum the second blockchain to be supported by Google after it added¬†Bitcoin blockchain data to BigQuery last February.

Institutional investors may also soon have access to Ethereum. Cboe, which notably launched the first fully-regulated bitcoin futures market last December, is reportedly telling market makers that it will soon launch an Ethereum futures market. However, analysts are currently mixed on the ultimate impact of such a market, with some projecting that increased short interest could hurt long-term price action.

ETH is currently ranked 2nd in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens. The ALT100 has retreated in recent trading and is down more than 15% over the last 24 hours.

CoinCodex
More: Is the Upcoming Cboe Ethereum Futures Market a Bad Thing?

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

 
Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts