From the top 3 trending cryptocurrencies, ethereum is one of the strongest and most prominent cryptocurrencies which have been in news from quite a while now. The end of 2017 and beginning of 2018 has brought quite ups and downs for ethereum alike the other cryptocurrencies. Regular rates and percentages of ethereum going down has become the matter of concern for many investors.
Let’s know what’s happening with Ethereum these days:
As soon as the news of ban on cryptocurrency exchange was spread, Ethereum witnessed a huge downfall in its value. Followed by this announcement, the value of ethereum dropped 17% suddenly with a downfall of $228 per token.
Primary reason behind the downfall of ethereum is the ban on ICO’s. The ICO’s use Ethereum block chain for creation of cryptocurrencies for trading. Through this, companies can earn a lot of amount and ban on this has thus affected Ethereum widely. Chinese government has strictly banned ICO’s sensing security issues and thus it has also reduced the demand of Ethereum in the market.
Since the beginning of January, Ethereum is fighting hard to cover the loss and upgrade the value above $1097. The currency faced a straight downfall from $1472 to half, which is $770. Since past 3-4 days, Ethereum is trying to rise above $1078. However, this was not the case for the entire month of January. After a huge clash, Ethereum passed $1,000 for the first time during the first week of January. On January 5th, the currency’s value was $1,000. There are 2 factors which caused a win win situation for Ethereum.
The first factor was an intense slow down in the value of Ripple (a prominent competitor), and the increase in users of decentralized applications. Before this, in December, ripple raised the bar and became the third alternative cryptocurrency which too affected Ethereum. Ripple and Ethereum have always been in strong competition and are constantly struggling for better market capitalization and value.
It is expected that the price of Ethereum will increase with time. It will recover the loss and establish as a strong cryptocurrency while competing with Ripple strongly. The decentralized applications of Ethereum are widely popular among users which are of great benefit. If these applications will be launched with Google play store or apple store, the network of Ethereum will improve quickly.
Speculations are that Ethereum will effectively regain its value and strong position as a cryptocurrency due to its decentralized applications while competing with Ripple and other currencies.