Compared to the start of September, Ethereum’s price has dropped more than 60%, reaching a new yearly low.
As ETH dropped under $200, there’s been a lot of turmoil. Both investors and cryptocurrency analysts have been trying to find the root cause of this phenomenon.
According to crypto researcher Kevin Rooke, Ethereum’s price is linked to ICOs.
ICOs have spent over $30 million worth of ETH this week (153,500 ETH).
This is more than any week since March 2018.
The scary part? These ICOs still have over $600,000,000 worth of treasury ETH in their accounts (3,000,000+ ETH).
Will they sell? Will they hold? 🤷♂️ pic.twitter.com/DlGGziEBAZ
— Kevin Rooke (@kerooke) September 11, 2018
ICOs have spent over $30 million, the equivalent of roughly 150,000 ETH. Right now, there is a total of 200,000 ETH sold, which is approximately $40 million. ICOs still have more than 3,000,000 ETH in their accounts, the equivalent of $600 million.
Alex Krüger, another crypto analyst had a similar view regarding Ethereum’s declining price:
According to @santimentfeed's database, ICOs for which their Ethereum wallets are known have a visible balance of ETH 3.3 million, or $900 million at current prices. ETH 135K were transferred out / spent in the last 30 days (about 4%). #ICO
— Alex Krüger 🇦🇷 (@Crypto_Macro) August 24, 2018
It seems there are other industry experts who agree, for instance, the CEO of cryptocurrency fund of hedge funds BitBull Capital. He said:
“Ether’s price was inflated earlier due to the ICO mania. As people pledged Ether with ICOs, the supply-demand equation got skewed — now ICOs have cooled down, and hence the setback.”
There are some other opinions floating around as well. Nouriel Roubini, economist, and professor at New York’s Stern School of Business concludes most dapps on the Ethereum platform are deceitful casino games and pyramid schemes while the rest are DEXs, which are hardly ever used as most transactions take place on centralized exchanges.
No wonder Ethereum is collapsing. 75% of DApps are crypto-kitties, scammy Ponzi pyramid schemes & Casino games. The other 25% are DEX that no one uses as 99% of transactions are on centralized exchanges. & 99% of crypto-currencies have already lost 99% of their value. Meltdown!
— Nouriel Roubini (@Nouriel) September 9, 2018
Other crypto experts highlight Bitmex’s introduction of Ethereum, which permits shorts with up to 100x leverage.
As investors are not so interested in Ethereum anymore, Bitcoin’s dominance is growing. Last year in June, Bitcoin had almost 38% of the market, followed by ETH with 30%, Ripple with 9.6% and Litecoin with 2.25%. Since then, Bitcoin reached 57% market dominance, succeeded by Ethereum with 9.70%. There may have been some ups and downs along the way but in the end, Bitcoin has been able to steadily regain its dominance.
Yesterday, Bitcoin’s price reached $6,450, jumping $260. Over the past days, Bitcoin’s price has been pretty stable, remaining around $6,300-$6,400. Right now, BTC is priced at $6,308 according to Coinmarketcap.