Is Ethereum (ETH) Dead? This was a common question on all social media platforms when ETH started nose diving in the markets earlier this year.
At its peak, Ethereum (ETH) was trading at $1,425 on January 14th. This is an impressive bull run of the coin from early November levels of $300. Doing the math, the January value was a 375% increment in a matter of a little over 2 and a half months.
The jump in value for Ethereum had been speculated to being caused by two things. Firstly, it was the season for prominent ICOs and their smart contracts were Ethereum based. This then made the said ICOs to encourage investors to use ETH while depositing funds. As a result, Ethereum blossomed amidst the ICO boom of late last year and early this year.
A second reason that led to Ethereum peaking in January, was the fact that a lot of traders used the coin for trading and transferring funds from one exchange to another; based on where the action was. This was during a time period when BTC transactions were taking 2 days to complete and costing an average of $25 per transaction. This then made ETH the automatic option for traders wishing to make profits from the slight price discrepancies amongst the numerous online exchanges.
What then proceeded after the January peak, was that ETH continually dropped in the markets amidst general cryptocurrency FUD and regulatory fears. The discovery of smart contracts vulnerabilities on the Ether Platform added salt to injury. ETH would bottom out at around $370 on April 7th: a drop of 75% from its peak value.
It is with these events that a lot of Crypto-traders and vocal enthusiasts had declared Ethereum (ETH) as being dead and no long able to hold its own in the markets. However, these claims might come to haunt those who had doubts for ETH is showing signs of being a winner again.
Ethereum is currently trading at $689, up 8.26% in 24 hours. This value is a 86.4% increment from the April 7th low. The impressive recovery has been achieved in less than 3 weeks with the markets showing no signs of slowing down.
In conclusion, Ethereum has proven to be both resilient in the markets and as a platform for smart contracts. There are rumors that there is a new solution to the scalability problem on Ethereum. The solution being proposed is similar to the sharding that Zilliqa (ZIL) is using. Given the brilliant developers in the crypto-verse, Ethereum scalability might be a non-issue very soon.