The Cryptocurrency Market for the first time ever witnessed Ethereum surpassing Bitcoin Cash to number one position. According to CoinMarketCap, Ethereum traded at $86.76 while Bitcoin Cash traded at $83.07.
According to Coinspeaker, Steven Nerayoff, the co-creator of Ethereum said that Ether’s market capitalization will reach USD 110 billion. Nerayoff’s prediction is attributed to the number of products being built on Ethereum Blockchain. And this is increasing steadily. Earlier this year, Nigel Green, the co-founder of deVere Group had made similar predictions. He had said, “another one to dent Bitcoin’s market share over the next few years, would be its current main challenger Ethereum.” Green-backed his prediction by saying that a growing number of platforms are adopting Ethereum as a means of trading. “There’s increasing use of smart contracts by Ethereum and due to the decentralization of cloud computing.” Green also said that the year 2020 will also be good for Ethereum.
2019 Will Not Be So Good
However, 2019 analysis reports for Ethereum show a downturn. According to Smartereum recent analysis shows a sharp drop. And the continued downward spiral has surprised investors. “Currently, Ethereum (ETH) is trading around $103. This shows that the digital asset has fallen from approximately $1200 since the start of the year. The token has lost over 90 percent of its original value due to the highly volatile market.”
Reports further state that it is crucial for Ethereum to retain the $100 support of area. But double digits are now becoming more of a possibility thus, investors remain sceptical. Market analysts predict Ether’s fall below $100 to be imminent. As per Smartereum “with the competition within the Blockchain increasing from other virtual currencies, the use of Ethereum blockchain isn’t increasing by any means at a faster pace when compared to what it earlier was.”
Ethereum’s decline is the result of the low rate of new Initial Coin Offerings (ICOs) coming into the market.
Whatever the predictions, Ethereum’s market potentials cannot be overlooked. With industries more inclined towards block technology now, its opening up in all kinds of different areas. And most of all, Ethereum will definitely pick up because it can process transactions more quickly than its rivals.