Ethereum is the second largest cryptocurrency after Bitcoin. Since its launch in 2015, its price plummeted from $1,417 to its current three-digit value.
Ethereum is both a cryptocurrency and a platform. It’s the first to introduce smart contract technology that allows developers to create and deploy decentralized applications.
Ethereum’s price performance for the last few months hasn't been rosy.
There are other challenges too, including the network slowdown experienced when Cryptokitties was launched on the platform. Scaling problems are a real threat to the future of Ethereum, and it’s not a surprise that a legion of investors are predicting its death.
They base their arguments on the fact that even as the platform grows; its token continues to lose its functions. While Ethereum naysayers might have a point, it might be too early to predict the death of such a giant.
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Building amazing apps
Ethereum is designed with developers in mind.
It’s a platform that allows for the development and deployment of smart contracts. Because it’s based on a blockchain, it delivers low-cost, speedy transactions in a secure environment.
Hundreds of cryptocurrencies have been launched on the Ethereum blockchain using the now popular ERC20 token standard. All of these are amazing decentralized applications that are changing the world.
No future of Gas
Ethereum has a cryptocurrency token which is a utility token. On top of it there’s Gas, another token that's given to miners as a reward.
The platform uses smart contracts which allow users to use any cryptocurrency of their choice. And this is where the Ethereum token and Gas lose their function.
The platform runs a Proof of Work algorithm and is mulling a new Proof of Stake mechanism that might spell the end of gas.
Eliminating Ethereum based fees
The smart contracts technically remove the use of ether in the ecosystem. With smart contracts, any user can pay miners using a cryptocurrency of their liking and smart contracts convert it to any other coin as required.
Without ether based fees. Ethereum could be on its death-bed.
The Ethereum Foundation, the Swiss based non-profit has admittedly struggled to prove the value proposition of Ether.
Lack of software support
There's also the argument that Ethereum software is technically different from the ERC20 standard tokens issued on the platform. As such, there's no software support to make ether to be compatible with ERC20 tokens.
Difficulty in pricing of ETH
The crypto market is generally volatile and no one can really predict the future of any coin.
This also rings true for ETH.
Most smart contracts are linked to Ethereum ERC20 tokens and none is directly linked to ether.
It’s possible to write smart contracts without linking them to Ethereum or ERC20 tokens and this again could kill ether as a cryptocurrency.
The requirements of Ethereum for its Proof of Stake
Ethereum’s Proof of Work algorithm has been blamed for the platform’s lack of scalability when the system is congested.
Even as the platform looks at incorporating a Proof of Stake algorithm as it implements the Casper upgrade, such an algorithm doesn't require miners to hold any ether and this could be bad news for Ether as a cryptocurrency.
Most Ethereum bashers want us to believe so.
Why is the crypto market so bearish on ETH?
It must be noted that the current bear run is affecting all cryptocoins, not just Ethereum.
Exploring the arguments against Ethereum
The cryptocurrency industry is awash with Ethereum naysayers, mainly investors in competing projects, who argue that Ethereum’s fall is inevitable. They present all manner of arguments to support their prediction.
However, it’s still too early to predict the demise of Ethereum as we know it and theirs can only be seen as wishful thinking.
There's so much happening around Ethereum that could make it a star crypto and platform of the future.
Think of the looming Ethereum futures and the expected system upgrade.
These are the kind of theories that give most people a bullish outlook of Ethereum despite its low prices.
Everyone who understands the cryptocurrency industry knows that price volatility has become the bane of digital currencies.
One day BTC and ETH are roaring high, the next day their prices are on a free fall. This doesn't in any way make them dead and Ethereum certainly isn’t dead at the moment.
Ethereum breaks 12 month record
2018 has been a rough year for Ethereum and most other altcoins. Prices have tumbled to record lows.
The Ethereum price has been on a downward trend since January.
On Sept 15, the cryptocurrency surprised many after it broke a 12 month record in terms of daily market volumes.
According to Bitfinex, this was the highest daily volumes since 2017, this clearly shows that investors still have done confidence on Ethereum even as its developers devise a scaling solution.
More turmoil ahead?
The current turmoil on prices is set to persist, according to Ethereum founder Vitalik Buterin.
Although he sees the plunge in prices as a market correction, he’s not hoping for a quick recovery of prices, at least not in the foreseeable future.
So what will boost Ethereum
While Ethereum’s bearish run could persist, a number of developments could trigger its price in coming months.
One of these is Ethereum 2.0, an upgraded version that features Casper, Ethereum's upcoming Proof of Stake algorithm and Sharding.
These developments are expected to be implemented in 2019.
ETH/USD price update
Most experts are seeing Ethereum’s price overtaking that of Bitcoin, at least by 2020.
One of these is Olaf Carlson-Wee, CEO of Polychain capital.
Others predict the price of Ethereum to surge by 1000+% in a few years. Price prediction for ETH shows that its surging 727% in five years.
Ethereum co-creator Steven Nerayoff believes that the increased number of projects launching on the platform could make it overtake BTC as billions of dollars enter the crypto industry through ICOs raised on the platform.
He tips the price of Ether to triple sooner than later.
Reasons to believe in Ethereum
The price of Ethereum has given investors a worrisome outlook on the second largest heavyweight.
Despite the dull outlook, experts see a future in Ethereum.
Here are some of the compelling reasons why they back Ethereum.
94% of the top 100 Blockchain projects are built on Ethereum
According to Alex Saunders, Ceo of Nuggets News blockchain channel, Ethereum is the preferred platform for building blockchains most creative solutions.
As of June 2018, some 250, 000 developers are believed to be part of its vibrant community.
Upcoming developments with Ethereum
Alex Saunders is all optimistic that Ethereum will get its groove back once the Raiden Network, a scaling solution, is implemented on Ethereum to put an end to its scaling issues.
Support from the community
It’s also important to note that the Ethereum community still supports it.
Recently, the tickets for the annual Devcon4 conference sold out, signalling strong support for the coin from its community.
Sell now in preparation for another boom
Going by the continued bear run of Ethereum, short-term investors are better off selling as the trend will most likely continue.
According to experts, the downward trend of Ethereum effectively marks the end of the bubble witnessed last year and selling it could be a wise decision to prevent more losses.
Even as investors sell in the short-term, they should keep their eyes open as the prices are likely to surge in the near future.
Today's Ethereum price charts aren't a reflection of Ethereum’s future
No one can deny that the future of Ethereum and other cryptocurrencies is assured, despite the current bear run.
The current prices are just but a market correction after the boom of 2017.
According to Ethereum cofounder Vitalik Buterin, this current bear run is expected to continue and doesn't determine the future price of Ethereum.
Indeed, there are many positives that seem to back the success of ETH down the road, including the many start-ups that choose to launch on the platform.
While ICOs are a good boost for Ethereum, they also present a problem and they tend to tie up lots of Ethereum which should be in circulation.
This explains why every exit of an ICO drives the price of Ethereum out of control. However, this is not a sign that Ethereum is dying.
Crypto growth based on marketing is a dead end strategy
The bullish rally witnessed in 2017 might never happen again, according to Ethereum co-founder Vitamin Buterin.
He says compared to last year when most people didn't know what Ethereum was, most people today know how blockchain works and are looking to invest in projects that have real work applications.
In late 2017, a marketing-induced hype rallied the prices of cryptocurrencies to historic highs as new investors joined in.
Buterin says that if Ethereum prices will surge, the reason would most likely be "widespread adoption" and not market hype.