The greatest success story of 2017 was Ethereum and its 3,000% increase in value. Today (Monday August 13), Ethereum’s price sadly dropped back to what it was prior to that great surge, almost as if it never really happened.
Monday August 13 was a sad day for Ethereum, and for cryptocurrency. In a microcosm of what is happening throughout the crypto world, the value of Ether dropped so low – $290.37 – it is now worth what is was prior to its brief “Purple Patch”, which ran from November 2017 until March 2018, and saw its value ascend to over two dollars per coin.
Ethereum has long held the position of the no.2 ranked cryptocurrency, based off its market cap value, $29.5 billion, a figure way behind that of Bitcoin with $108.3, but well clear of 3rd ranked Ripple, who currently have a market cap value of $11.12 billion.
Ethereum Slump Indicative Of Total Crypto Market
Unfortunately, Ethereum’s current predicament is largely replicated by all of the top-20 cryptocurrencies. Unlike Bitcoin, whose highs in 2018 have been higher and lows lower, Ethereum, aside from this current slump, have had a consistent season of mediocrity.
As is often mentioned, the entire crypto market was badly stung earlier in the year with the decision by Facebook, Google and Twitter to ban all forms of advertising, causing the likes of Bitcoin, Ethereum and Ripple to miss out on a market that amounted to hundreds of millions of potential customers. When Facebook reversed its decision in late June, the market waited for its own reversal of misfortune. While initially things looked very promising, with Bitcoin in particular enjoying a dramatic surge in value, the benefits reported by Ethereum were negligible, if any.
Current Slump Attributed To Goldman Sachs Report
Because the cryptocurrency industry is still searching for those major corporate investors that will take its value and respectability to the next level, and because Bitcoin and Ethereum “coins” are owned by private investors, the crypto market is always waiting for the next dramatic story to either send values soaring… or plummeting.
The latter was the case recently when Bitcoin distributors Goldman Sachs released their latest report for their customers and shareholders. Details of this report soon began to surface, and views on cryptocurrency would have a massive impact on the market.
One quote in particular, made by the company’s chief investment officer Sharmin Mossavar-Rahmani from was particularly damning, not to mention damaging:
“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected. We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”
Few things have hit the crypto market as hard as this report, and that is reflected in Bitcoin’s value. Prior to its release, BTC’s value was almost $8,400, its healthiest in months. However, once the GS report was released, Bitcoin went into freefall, dropping to $6,091 within two weeks.
GS Report Fallout Still Ongoing
With today’s news of Ethereum slipping to a nine-month low in value, it’s clear that the fallout from the Goldman Sachs report has yet to dissipate. Ethereum and its investors have endured a desperately disappointing seven months, which saw Ethereum peak at a price of $2.78 in the first week of January, and still stay above the one dollar mark until late February, before succumbing to a form of “Chinese Water Torture” that has seen Ether’s value drip-drip-drip away, day after day.
On a positive note, Ethereum is still here, it’s still ranked no.2, and it still has a whole bunch of extremely smart people committed to its future, none more so than creator and SEO Vitalik Buterin, the Russian wunderkind who is still only 24, and founded Ether when he was just 19.
Expect Ethereum to weather the current GS storm, finish the year on an upswing, and have a much better year in 2019.