Last year, there was a time it seemed likely that ETH could outgrow even BTC in market capitalization. Despite the coin’s valiant attempt to become the largest coin in the market, this dream is now long gone. From the end of September this year to date, ETH has been the third largest coin behind BTC and Ripple. This has been a huge upset to the entire crypto markets and it has got everyone wondering about the future of ETH. Does the coin still have enough juice to remain a contender for the top spot, or have the curtains closed on the coin? In order to make proper investment choices, we shall have to find out why ETH has fallen so far and what the future holds for it.
Why has Ethereum's performance been in the rut throughout 2018?
Ever since ETH was officially launched in July 2015, its value remained relatively stable up until 2017 when prices exploded. Between the 14th of January 2018 and 2017, ETH prices had increased by over 13,000% from around $10 to over $1,300. From the figures, it is clear that ETH was showing even more rapid growth than even BTC, which started at about $800 to reach an all-time high around $19,500, recording above 2,000% growth. The growth of ETH was so fast that, at some point, it was believed that it would overtake BTC in market capitalization as the image below shows. This anticipated event was termed as ‘the flippening’ because it would flip the top two coins in the market.
Despite this belief and expected event, it was never to happen because BTC quickly regained its footing and remained at the top of the crypto market. Since the peak of ETH above $1,300 in January, its price has kept going downward ultimately closing below the $100 mark – a level last seen in May 2017. Therefore, ETH value has essentially reversed and the market capitalization accumulated over the past 20 or so months wiped off. There was a moment of respite between the 6th of April and May 2018 that showed signs of recovery. But this would only last a month followed by a rapid selloff taking prices back to previous lows and extending the selloff in the coin. The decrease in ETH value was not caused by a single factor, but several come together, so we have to look at each of them separately.
The overall crypto markets selloff
From the graph above, you can see that the overall crypto market lost about 86% of the total market capitalization since the start of the year, but this isn’t totally bad news. As an investor, your job is to look for good opportunities wherever they may be. Often times, this means investing in well performing assets and riding the wave, but other times it involves buying underperforming assets with good value. If you’re going to be investing in ETH in 2019 then, you must understand the reason behind the overall selloff in the crypt markets. There are three main reasons for the selloff in the markets that also included the selloff in ETH. (Will Coins Recover From Their Price Slump In 2018?)
First was the launch of BTC futures toward the end of 2017 on the CME and CBoE exchanges. While BTC futures were a positive note for the markets in general, they also allowed investors to short the markets. Prior to the launch of BTC futures, all investors made their investment hoping for crypto prices to go up as there was no way to short the markets. With futures, though, high net worth investors could now short the markets and make a profit even if the prices for coins were going down. Tom Lee of Fundstrat noted that the price of BTC dropped by 18% prior to the expiration of BTC futures one year after their launch. After the renewal of the BTC futures, the coin’s value once again rose back up. Apparently, this is a trend that happens quarterly whenever the futures expire and are renewed. This tells us that the launch of BTC futures did indeed contribute to the overall selloff in the markets. (Cryptocurrency Ads Banned From Google And Social Media)
Another reason for the selloff has been delayed regulations that had been expected to kick in some time in the year. The heaviest blow came from the SEC who turned down nine proposals for a BTC ETF. Just like the BTC futures, BTC ETFs were expected to invite institutional investors but the denial by the SEC cast doubt on the legitimacy of coins. Also no other country other than Japan has legalized BTC or any other coin as legal tender, again casting doubt on all other coins. The failure by regulators to recognize coins as securities has made them look unattractive to investors.
At some point in the year, the SEC was even considering regulating ETH since it was first launched through an ICO. If you can remember, the SEC termed ICOs as securities and that companies offering these ICOs must be allowed by them to do so. Had the SEC found ETH to have been an illegal security, then its trade could have been banned in the US. Fortunately, the regulator ended up separating coins and utility tokens, with ETH falling under the latter category. (Do you know: Which Are The Most Influential Cryptocurrency Markets By Country?)
It was also due to regulatory changes that the crypto selloff kicked off in January. South Korean regulators had been considering banning coin trading completely as China had done in August last year. Because South Korea is among the top 3 markets for coins, the news shocked traders who panicked and started to cover their positions. In the end, South Korea decided to regulate the markets rather than ban them altogether, but the damage was done and since then the markets have never recovered. (Gram (TON) Vs BTC in 2019: Best Worldwide Crypto Fight, Pros and Cons)
Finally, it all comes down to the type of investor. Unfortunately, crypto markets are saturated by speculators rather than actual long-term investors. This kind of investor is not interested in the long-term approach toward investing, instead just waiting for any opportunity to sell assets at a higher price. This is probably what happened in the crypto markets once the coins reached their all-time high levels and speculators started selling their coins for a profit. Any speculator that had already enjoyed huge returns from their coin investment would have been happy to cash out. After all, there was probably no better investment vehicle all through 2017 than crypto. As speculators were selling their coins, including those of ETH, its value dropped significantly throughout the year.
All these reasons affected the coin markets in general, but most significantly to the top coins like BTC and ETH. As a result, the value of ETH is now at about 2-year lows and still dropping looking at the possible signals today. (Ask yourself: After The BTC Cash Fork, Which Is The Real BTC?)
Decline in the number of ICOs held
At the start of the year, ICOs were raising a lot of money for various projects around the world, but the amount raised gradually decreased. In 2017, over $5 billion was raised through ICOs, then this value rose sharply to $6 billion in the first quarter of 2018 alone. According to many reports, the money that had been raised by start-ups through ICOs had far exceeded that raised from venture capital (VC) firms. The shift by start-ups away from conventional VC funding represented a changing attitude in the way companies raised money. A lot of the money raised through these ICOs was done using ETH because it was faster than BTC at confirming transactions. Add to that, a lot of the ICOs were meant for companies that utilized the ETH platform in creating smart tokens. Thus ether became the preferred token for participating in ICOs. This demand generated a lot of demand for ether, causing its value to rise dramatically through 2017 and early 2018.
However, the number of ICOs being held around the world dropped rapidly as the year 2018 went on. The graph above is a representation by the website ICO Data showing the amounts raised through ICOs all through the year. As you can see, the money raised from these ICOs was declining, and with it the demand for ether also dwindled. Without the demand for ether to be used in ICOs, the value of the coin dropped accordingly. (These are the: BTC Price Prediction Update And Forecast For Autumn 2018)
Not only did the demand for ether decrease but there was also a selloff in ether following the decrease in coin value. We already mentioned how the crypto markets are mainly driven by speculators, and these investors were quick to pull out of the markets once the slump began in January 2018. Following the fear over South Korean regulators banning crypto trading, investors sold off their ether to avoid losing money. This further exacerbated the decline in prices of ether causing widespread fear among investors and even startups that had raised funds in ICOs. Imagine a company that had already raised a particular amount of money to create a company, then got worried that price declines would decrease the amount of money they raised. (These are the: ETH Price Prediction Update And Forecast For Autumn 2018)
An example of this was the EOS ICO held from the 1st of July 2018 and ran by Block.One. All through May 2018, the company sold about $950 million in ether tokens, which a huge amount of that being sold on the 28th of May 2018. Back when the ICO was ran, EOS raised $185 billion when ether was valued at about $280. Then the selloff occurred when ether was worth around $575 – still a good profit. On that last day of the massive selloff by EOS, the value of ETH dropped quickly from around $570 to below $500 within an hour. This selloff was noted on the Bitfinex exchange that wallets related to EOS are associated with. (Learn from: The Most Prominent Cryptocurrency Hacks and Scams You Should Know)
The case of EOS was unique because it was such a significant ICO and the amount of tokens sold were huge, but you can be sure it wasn’t the only selloff by a startup. Anyone worried about their raised capital disappearing would have sold their ether and converted it into either fiat or a stablecoin like Tether. This would also explain why Tether and other stablecoins increased in market capitalization so rapidly throughout 2018. By losing its demand for funding ICOs and the selloff by panicking investors, the value of ether has continued to drop all through 2018 and has eventually made it to be overtaken by another coin. (Ever wondered: How Did Tether Coin Survive The Crypto Market Selloff?)
Competition from other coins
For a long time, ETH had remained comfortably in the second spot behind Bitcoin. A look at charts comparing the two shows that they have always been in competition between each other. This almost inverse relationship meant that one could replace another whenever there was a slight disadvantage, while the rest of the coins competed in a different league. This case has not remained to be, because there have been other coins making faster leaps and making themselves even more attractive than ETH. The most popular of these is Ripple (XRP) created back in 2012, even before ETH, to become a more effective money transfer system. Where ETH can only handle about 15 transactions per second, the Ripple web can process 50,000 transactions. This is even faster than the number of transactions Visa can process in a second, and not to mention the benefits of ledger technology like security.
Ever since Ripple was created, the company’s intention was to integrate ledger technology with the banking systems to make them more efficient. With the news that Ripple could outdo even Visa, of course the banks would be impressed. Even before the announcement that Ripple could outdo Visa, about a hundred banks had already signed on to work with Ripple Labs to improve global cross-border payments through xRapid. Some examples of these companies include Financiera Cuallix and SBI Securities who use RippleNet to facilitate transfer of money across borders. There were even talks of Ripple partnering with SWIFT to improve transfer of large quantities of money between financial institutions when the company was invited to the Sibos Conference in Sydney, Australia. (Check out this: Ripple Price Forecast, Making Money Moves!)
Ripple isn’t the only coin presenting competition to ETH because Cardano is also looking to replace the conventional international money transfer systems. Another thing ETH had going for it was its ability to host smart tokens for the creation of decentralized applications. Again, several other coins have emerged to do the same task, and do it better. Examples of these include the aforementioned EOS as well as Stellar Lumens, Cardano and others. Even Bitcoin Cash has plans to allow for the creation of smart contracts once the scalability issues are solved. All this competition has driven some interest away from ETH and decreased its market capitalization. (Cardano (ADA) Price Prediction Update And Forecast For Autumn 2018)
It is no wonder, therefore, that one of ETH’s headline news is starting to falter. The Enterprise ETH Alliance (EEA) was created in early 2017 to allow major companies to launch decentralized apps on the ETH web. EEA now has over 100 companies listed, showing that the web has a lot of support from major companies. However, EEA has begun to fall apart because there hasn’t been any progress on the ETH web and some companies are leaving. TenX recently announced that they would not be renewing their membership with EEA, instead choosing to go their own way. If this continues to happen, there won’t be as many company left in EEA to give ETH the reputation it once had.
From the combined changes in the ETH web seen above, the value of ether has been gradually dwindling in 2018 up to the current level. For an investor, this may be discouraging, but then again it could lead up to a recovery. To determine if the recovery is possible, we have to look at the changes that could happen to the ETH web in the coming year. (Do you know: What Is The Future Of Coin In Finance?)
What will happen to the ETH network in 2019?
2019 will definitely make a huge mark on ETH going forward, and the changes will be marked by two main factors – developments in the technology and institutional investors coming in.
Ever since the ETH platform was launched July 2015, the ETH Foundation had already planned to improve the ETH web in four stages. The first two stages were Frontier and Homestead, which were all completed in July 2015 and February 2016 respectively. Both of these were easy to go through with since they were just basic enhancements to the web meant to allow for the creation of decentralized apps. The most important stage, though, is the fourth one called Metropolis. This stage of the web upgrade consists of two steps – Byzantine and Constantinople. The Byzantine step was already implemented in October 2017, increasing the speed at which new blocks were being created and allowing for faster processing. Additionally, the rewards per block were reduced from 5 ether tokens to 3 as the web was attempting to move away from a proof-of-work to a proof-of-stake system. The second step in the Metropolis stage called Constantinople was meant to be implemented in October 2018, but the date was postponed to January 2019. (Before investing: Learn How Coin Scams Operate And Avoid Them)
The Constantinople upgrade would move the ETH web even further toward the Proof-of-Stake (PoS) system intended. The PoS system eliminates the need for miners to use computing power to hash blocks in the ledger. In doing so, the web would be more decentralized because miners would not be able to use ASICs and create ETH mining warehouses. Furthermore, a PS system is faster in processing transactions because miners are not required to do the job. In the Constantinople step, the ‘Difficulty Bomb’ would be triggered, which would make block hashing a lot more complex. In doing so, it would be unprofitable for miners to keep mining ether, effectively forcing them to switch over to the PoS system. This absence of miners called the ‘ETH Ice Age’ is very important because without it, some miners could have kept processing blocks using the previous system. If this were to happen, a fork would happen in the ETH web, but this way there would not be a chance of a hard fork in the ETH web.
Furthermore, the Constantinople step would allow for ‘off-chain’ transactions like those enabled by the Lightning Web in Bitcoin. Using these off-chain transactions, the web becomes a lot more scalable to handle more transactions and eliminate the bottleneck created when there are too many transaction requests. Finally, this step would reduce the costs incurred when creating and running smart contracts, also known as ‘gas’. After Constantinople, the final stage is called Serenity, and will involve the final stage of moving into PoS and completely abandoning Proof-of-Work (PoW). The date for implementing Serenity is not known, nor has it been determined by the ETH team, but it could happen some time in 2019. (What Would Happen To Bitcoin Price When It Is All Mined?)
When the Byzantine upgrade was implemented last year, the price of ether rose sharply because it showed that the ETH team was making progress on the web and that there would be real improvements to overcome the problems. With the delay of Constantinople, there wasn’t much of a reaction from investors because there wasn’t much trading activity at the time. This lack of activity was due to the decreasing trading volumes for ETH and the low market prices. Add to that, ETH miners were happy about the delay because they could keep making money by continuing to hash blocks for rewards. As already mentioned, Constantinople would increase the difficulty in mining, driving away miners because it would no longer be profitable. (Does BTC Stand A Chance To Becoming The Worldwide currency?)
With the January hard fork date, however, we may see more of a market reaction with the implementation of Constantinople as we say with Byzantine. The most significant impact the hard fork would have is that it would reduce the edge other coins like Ripple have in the markets and restore the place of ETH. With the move to PoS and other improvements, the ETH web will become more efficient and scalable, allowing for more transactions to occur even when demand is very high.
Institutional money flowing in
When the EEA was formed in early 2017, many of us were hoping to see many of the companies in the consortium start to use the coin extensively. But these are very cautious companies that would not want to take any chances, so it was only experimental. Fortunately, it has now become clear that coins and ledger can be very beneficial especially for the financial sector. We have already heard critics changing their tune over Bitcoin and other coins, and it has only just begun. New technology has always been opposed by those who want to keep the status quo, but eventually even the harshest critics cave. Just like some people in the early 1900s said the automobile would go away, they were proven wrong with time. (Will Institutional Investors and Sharks Invest Massively in Bitcoin in 2019?)
In the case of coin, we have already seen institutional money trickling into crypto markets, and this can only increase in 2019. Perhaps the harshest critic, Jamie Dimon, CEO of JPMorgan, acknowledged that there was a real utility in coins, and that the company was looking into how they could integrate the technology. Many other investment banks and hedge funds have also created trading desks specifically for crypto and the top crypto exchanges are catering to institutional investors by creating trading desks for high net worth individuals who make operations worth millions and even billions. So there is no doubt that these investors are looking at crypto, the only question is whether they will consider ETH. (These are the: 5 Tips to Choosing the Ideal Cryptocurrency Exchange)
Thanks to the position of ETH as the 3rd largest coin by market capitalization, that alone makes it very likely to be included into the portfolio of institutional investors. These investors know that one has to diversify in order to prevent any large losses. Warren Buffett also said a good stock to invest in is that which has a utility that cannot be refuted. He gave the example of Coca-Cola, which he has invested in, by noting how many bottles of soda are drank every day. PS: it’s 1.8 billion bottles a day. This is the same with ETH, where many ERC-20 coins are hosted in the form of smart contracts. Just like Coca-Cola, ETH is one of the most active crypto webs, hence one not to be ignored by any serious investor. (Learn these: 5 tips to forming the most promising cryptocurrency investment portfolio)
The other advantage going for ETH is the trust people have in the platform. Compared to, say, Bitcoin, ETH is a newcomer in the market, but that hasn’t stopped it from reaching the top echelon of the crypto markets. In fact, there was a time people thought it would overtake Bitcoin. This means that out of the more than 2,000 coins available today, ETH is still among the most trusted of all. It can even be used to replace Bitcoin as we saw toward the end of 2017 when there was a lot of congestion on the Bitcoin web. For an investor, this is an extremely attractive quality of any asset, which makes ETH highly likely to be picked by institutional investors. (Investor Tips 2019: What To Include In Your Portfolio)
There is also legitimacy in ETH following the investigations by the SEC, looking to make ether tokens securities following the 2015 ICO. Fortunately, ether was determined to be a utility token and not required to acquire approval from the SEC. This kind of regulatory statement from the SEC gave ETH the necessary legitimacy serious investors like. After all, when investing billions of dollars, you can never take the chance that the asset will be banned the following day. There are many coins to invest in, but ETH is one of the few that has been approved by authorities, and that is a huge advantage. (You should know the: Cryptocurrency Regulations Around the World)
With the improvements planned for the coin in 2018, it will certainly become much more effective and increase its competitiveness. From what we have seen throughout this year, the competition has become brutal in the crypto markets. There have been a lot of newcomers among the top 10 coins, pushing away some previous contenders. These include the likes of EOS, Bitcoin Cash, Bitcoin SV and Stellar Lumens which have pushed away the likes of Monero, Dash, IOTA and others. All the newcomers have brought something different to the table, and the previous occupiers have had to move aside. ETH has already been pushed to third place by Ripple, but it is fighting to stay relevant by making improvements to the web. Despite the delays in 2017, it is still likely that the intended changes will happen early in 2019, bringing ETH back to its rightful place behind Bitcoin. Again, investors will always pick the best performing assets, and ETH is poised to become just that come 2019, so it will definitely be a lucrative asset for investors.
This probably doesn’t even cover everything we can expect to see coming to ETH in 2019. Crypto markets move very fast to adapt to changing circumstances, and the ETH developers will have to stay on their toes to do just that. (These are the: 10 Most Important Resources to a Cryptocurrency Trader)
Price predictions for ETH in 2019
Everyone can have an opinion, but that doesn’t make them right. On the other hand, you don’t have to take their word blindly without doing some of your own due diligence. Besides, some of them have been right before and continue to be. This is the approach we shall take, comparing what the experts believe about the future of ETH and sprinkle in our own research.
As with all things, there are always opposing sides to every argument. In crypto, there are some who believe that coins will ‘moon’ and others who claim it is a bubble. In the former corner are some notable names including Tom Lee who is Head of Research at Fundstrat. In a note to Fundstrat Global Advisors, he stated that ETH will reach $1,900 by the end of 2019, representing an 1,800% increase in value from current market prices. This is quite ambitious for a coin that has barely peaked above $300 in 2018 and is currently trading below $100. (Do you know: What Will Be The Impact Of A BTC Fork?)
Then again, Tom lee has been wrong before when he predicted that Bitcoin would end 2018 at $20,000 before retracting the statement. It has been argued that forecasts from investment firms should not be trusted completely since they have incentive to make bold forecasts. These investment firms need to keep their investors confident so that they don’t panic and pull out their money. (These are the: 5 Most Popular Uses of BTC and other Coins)
Although Lee’s predictions are a bit over the top, there is a general bullish sentiment for ETH and other cryptocurrencies. A more trustworthy source could be GP Bullhound, an investment firm that correctly predicted back in May that coins would experience a 90% correction. At the time, many thought that the downtrend would turn around, but it has indeed kept pounding the crypto markets, showing that GPB’s predictions were correct. This has not been the only correct forecast either, since their other predictions have also been spot on, meaning there are some good analysts over at GBP. Although the firm did not mention any specific target price, they did indicate that a market recovery would occur in 2019 owing to the inflow of institutional money.
In their opinion, even the large financial institutions experience FOMO (fear of missing out) and they may hop on the crypto wagon. The signs are already there with the creation of exchange traded products like the Amun Crypto Market Basket Index ETP on the Swiss markets. This is not exactly like the Bitcoin ETF being sought for in the US, but it shows cryptocurrencies getting on to mainstream markets. Another sign mentioned by GP Bullhound was the decision by Calastone to move their global fund transaction business onto blockchain in order to reduce costs for funds transfer. Calastone is a major brand in banking since they work with the likes of BlackRock, Fidelity and Vanguard. If such esteemed companies are using blockchain, then perhaps the institutional money will surely follow. (Learn all the: Basic Cryptocurrency Terms You Need To Know)
Saxo bank also echoed the sentiment of GPB, increasing the confidence in the forecast. One of the most reliable forecasts we could find was by Smartereum who predicted that ETH would reach $500 in 2019. That in itself is a 500% predicted growth rate, but it is not too ambitious to be impossible. This is also a more likely figure for 2019 because investors still won’t be completely confident in the markets, but then there could be more gains in the coming years from 2020. (What is An ICO and How Can I Make Money On It?)
On the other side of the camp are the critics who see the current downturn as the final nail on the coffin of crypto markets. Many of these critics have compared the crash in crypto markets to the Dot-Com bubble in 2000, showing that this was even worse because the latter only experienced a 78% downturn. These critics often point at the statements made by crypto enthusiasts in past months to justify their arguments. We don’t believe that the crypto markets are a bubble, there is simply too much evidence to prove otherwise. Even Warren Buffett didn’t go as far as calling coins a ‘bubble’. He instead said that the overall market would decrease in capitalization as the mediocre coins weeded themselves out.
Fundamental analysis of the markets
There is a widespread belief among crypto critics that coins do not have any valid fundamental factors to analyse, which means it is impossible to make accurate predictions except through technical analysis. Nevertheless, it is possible to derive fundamental data about cryptocurrency by observing the relationship between the miners and consumers. To get this data, we would have to look at information on the number of daily operations and the amount of ‘gas’ used. On the ETH platform, gas represents the amount of computational power required to complete operations on the web. When the web is overloaded, a lot more gas is required to process operations, which is why the developers are trying to move away from the PoW system. (Some of the: Alternative Cryptocurrencies beside Bitcoin to invest in)
Anyway, it is possible to get this data from crypto monitoring websites, from which we get accurate fundamental data about the ETH web. The image below shows a comparison between the number of operations that are handled every day and the web value measured by the total market cap. From the image, we can see that the web value peaked around January 2018 when the value of ether was hovering around $1,400. Since then, web value has dropped by 93%, but the number of operations have only decreased by 52%. To calculate the actual value of the web, we could use Metcalfe’s law, which squares the remaining web activity. For ETH, there remains 48% of network activity since the peak in January, therefore actual value should be (0.48)2 = 0.23. Thus, the acceptable drawdown for the network given its actual value is 77%. Since the current decrease is 93%, it shows that the market may be undervalued.
Moving on to the image below, we can compare the network value to the amount of gas used to process smart contracts. From the graph, it can be seen clearly that the amount of gas being used has remained about the same, even as the network value was dropping. The decrease in network value is still 93% but amount of gas used has only decreased 7% showing that there is still a lot of activity on the network. Calculating the proxy value of the network with these parameters, we find that a 13% drawdown is warranted, much less than the current 93% seen. Once again, this shows that the network is hugely undervalued, and that there are chances of recovery.
We can even look at graphs comparing hash rates with network, and the conclusion would be the same. From the graph below, hash rates have only recently started to decrease having continued to rise even when the markets were in a downturn. The fact that hash rates are now in a downward slope is cause for concern because it is usually a lagging indicator behind price. Sort of like a moving average; so a downward slope could be bad news for the network. All the same, the very presence of such high levels of hash rates shows that the network is very much active.
There may also be some good news on the ICO front, despite the headlines. At first, the numbers show a stark situation that spells doom for the entire ICO market, but looking deeper you find some intriguing data. The total amount of money raised in 2018 through ICOs is about $11.5 billion. With about $6 billion of that being raised in the first quarter alone, it would seem that the ICO market has been in the gutter for the rest of the year. However, the basic statistics that almost $12 billion was raised in 2018 means that the ICO market has almost doubled, and that is definitely not a sign of death. The only difference is that most of the ICOs held did not raise a lot of money. ICOdata reports that there were over 1,200 ICOs in 2018, but half of them could not raise more than $100,000. (Do you know: How easy is it to trade Cryptocurrency in the Forex market?)
Moreover, 55% of ICOs in the second quarter of 2018 could not reach their crowdfunding target. But then this was just 5% more than in the first quarter, which means even in the first quarter there were a lot of failed ICOs. Finally, only 7% of coins started through ICOs have been listed on exchanges, while the rest remain in peer-to-peer platforms and the companies themselves. Even though there was a decreasing amount of money being raised, it speaks more to the competitive nature of the space rather than the ICO market itself. Whenever a sector becomes popular as ICOs have become, everyone joins in thinking they can succeed as well. In the end, we see a lot of substandard projects coming to the fore, and they tend to taint the rest of the market.
It’s also important to note that the decrease in monies raised isn’t as huge as many would like to make it out. The ICO market was much busier in 2018 than 2017, and only slowed down after the first quarter of 2018. Even so, the decline wasn’t as dramatic. Considering also that the coin markets overall were decreasing in market capitalization by double digits, then it should even be surprising that ICO markets have held up so well. As Forbes reported, the panic among investors around ICOs has more to do with the sentiment than actual value. The excellent performance of crypto markets in 2017 accustomed investors to huge returns within a short period, but this was just a short-lived hype. The markets are still doing well, only not as well as 2017, and people start to think that it is terrible. (Read out: Revain Price Predictions and Forecast for 2019)
As we have seen from the graphs above, not only are the ICO markets still going strong, but also the ETH network itself is still handling a lot of activity. Finally, we can now tell why there has been so much activity on the network, ICOs are still going strong in value and number. What we’re seeing now is akin to the dot-com bubble seen early in the century. Tech stocks experienced a huge upswing in value, followed by a rapid decline, but in the end the sector still became one of the most lucrative until this day. Just look at the likes of Apple, Netflix, Google, Amazon, etc. This may also be the same thing happening with ETH, where the markets are finally maturing and stabilizing, gearing up for the road ahead upwards. (Find out about: Veritaseum Price Predictions and Forecasts for 2019)
Long story short
The future of ETH in 2019 seems brighter than many may think, and this is precisely the best time to get in on the fun. A lot of people who are regretting their crypto investments today are those who got in too late and the coins were already highly valued. Had someone invested in ETH back in early 2017 when it was worth just $10, then even the current market prices of $100 would not be anything to worry about. The same is true today for the smart investors who see this downturn as a key entry point, and you should too.
You would expect the founder of Ethereum to be bullish on the coin, but it is still fascinating to hear from him nonetheless: