After scaling up to a respectable price point of $255 just under a week back, Ethereum has slid from $234 to around $209.62 in the space of just nine hours. As a result of this latest drop, the currency has now lost more than 9% of its relative value since yesterday afternoon.
To further expand on Ether’s latest woes, the currency’s total market cap has dropped by 3 Billion since yesterday afternoon to $21.6 Bln, thus causing the premier asset to once again linger near the 20 Bln confidence threshold.
Ethereum’s current price is hovering in line with its value just around a week back. However, as per its technical indicators, ETH is primed to pick up steam and close in on the $300 mark by the end of the month.
Vitalik Responds to Critics Claiming That the ‘Ether Blockchain is Not Scalable’
Ethereum is clearly at the technological forefront when it comes to smart contract implementation and dApp development, but the platform has been under a lot of fire in recent months from people who have criticized the Ether network as being highly clogged and suffering from issues related to ‘poor transaction throughput’.
However, in recent weeks, the Ethereum foundation has been tirelessly working on improving the scalability of its network by looking at unique proposals based on technologies such as plasma and network shards.
In addition to this, via a post on ethersear.ch, Buterin stated that “using ZCash’s ZK-SNARKs, Ether’s transaction rate can be scaled up to a whopping 500TPS with ease”. In relation to the matter, the co-Founder of Ethereum added:
“We can actually scale asset transfer transactions on ethereum by a huge amount, without using layer 2’s that introduce liveness assumptions (eg. channels, plasma), by using ZK-SNARKs to mass-validate transactions. Here is how we do it.
There are two classes of user: (i) transactor, and (ii) relayer. A relayer takes a set of operations from transactors, and combines them all into a transaction and makes a ZK-SNARK to prove the validity, and publishes the ZK-SNARK and the transaction data in a highly compressed form to the blockchain. A relayer gets rewarded for this by transaction fees from transactors.“
Usually, when the price of a currency falls drastically within the space of a few hours, many alarm bells are set off. However, this time around, many pundits are confident that it won’t take long for Ethereum to bounce back and once again regain its bullish momentum.