Yesterday, the second world’s most dominant digital currency, Ethereum, has hit its yearly lowest level, trading at 185 US dollars. Despite the fact that the ETH coin had previously managed to bounce back above the 200 USD mark subsequent to an unpredicted recovery of BTC to the price of 6,450 USD, starting from this July, Ethereum’s currency has been struggling through a much more significant value decrease that the other dominant digital currencies.
At the end of 2017, ETH was over 1,500 USD, and the ERC20-based altcoin financiers were able to obtain 10-100x gains from their ICO contributions. Financiers of the alternative coins, such as EOS, ICON, 0x, Ontology, abd Zilliqa have all experienced huge profits at the end of the last year, when the digital currency market was in its bloom.
However, the last couple of months was dramatic, with value of ERC-20 altcoins seriously failing against the value of BTC, which itself has witnessed a 70% drop against USD. Such altcoins as ICON and Ontology have registered 50-80% losses against the world’s dominant digital currency, which equates to approximately 95% loss against USD.
Most of the experts in the cryptoindustry have connected the drop of Ethereum’s value with the ERC-20 blockchain startups sell-off. Such projects have managed to accumulate millions of US dollars’ worth of ETH coins during their initial coin offerings.
With the falling price of ETH and the bearish cycle seen with the entire cryptomarket, specialists have stated that the ERC-20 startups began selling their possessions in ETH, subjecting Ethereum to an even harsher decline in comparison to other digital currencies.
Evidently, the panic of the people behind the ERC-20 startups caused them to sell ETH currency in huge volumes, therefore being one of the major factors that cause Ethereum’s demise.