The struggles for the world’s second largest cryptocurrency continue even though the price of a single Ether token climbed up by nearly $7 to touch the $200 mark earlier today— before dropping again to around 198.91 at press time.
However, it now appears as though the glory days of ETH are officially over, with Vitalik Buterin, the co-founder of Ethereum, stating that the blockchain sector as a whole is close to reaching its “full monetary potential”.
While many investors are still hoping for another crypto boom in the coming future, the sad reality is that this space is now saturated and can no longer offer the same financial growth like it once did— circa 2016-2017.
Speaking at the Ethereum Industry Summit conference in Hong Kong, Buterin made some striking remarks about the future of ETH and the digital asset sector as a whole. In an interview with Bloomberg, he was noted as saying:
“The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1000-times growth in anything in the space anymore.”
The Fact of the Matter
For those not aware of how the Ethereum ecosystem works, the platform makes use of a digital ledger whose transactions are fueled by a currency called Ether. Since the start of this year, the digital currency has witnessed an unprecedented drop in its price— losing nearly 85% of its overall value since touching high’s of $1375 during early 2018.
Most of these losses are now being attributed to the different ICOs that started to cash out their altcoin holdings all through August so as to cover their losses — following the ICO boom that took place late last year. At this point, it is also worth mentioning that the price of Bitcoin too has taken a severe beating this year, dropping more than 50% since January.
To put it mildly, September has not been a good month for the alt-coin sector in the slightest. Since last week, the total market cap of all the digital currencies available today has dipped from $239.08 Bln to $196.90Bln (as on September 10).
With that being said, one can only hope that things now start to move in an upward direction from here on out.
Charts courtesy of Tradingview.com