During one of the bloodiest weeks for crypto in recent memory, perhaps the biggest story is that of Ether’s dramatic price decline. Crypto’s second largest coin has dumped over 21% this week alone, and is now down 80% from its all-time high just seven months ago. As the sell-off has sharpened, some observers predicted a further sharp drop before prices can finally begin to recover. But Ethereum Co-Founder Joseph Lubin says price drops will not inhibit growth and that he remains bullish about the future.
Ethereum is an open-source distributed computing platform which is “fuelled” by Ether (ETH), the cryptocurrency used to compensate the nodes for computations on the network. Over just a few short years, Ethereum has become foundational in the success or failure of the wider crypto sphere, and as such the dramatic decline in the value of Ether has dragged the wider crypto markets down with it. Even as Bitcoin has largely held its value, Ether and the ERC20 tokens have plummeted. Some might fear for the future of the platform, but Lubin says it’s all just “pimples on a chart.”
The Canadian entrepreneur, who now serves as CEO at ConsenSys, said that although there is “a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem”, this recent price correction was “not unexpected.” He further commented that developer activity had risen by “two orders of magnitude” since last year and that Ethereum is still very much “on track.”
Since the system went live in mid-2015, Ethereum has become far-and-away the most widely adopted platform in crypto. By the start of 2018 the platform comprised some 27,500 active nodes and supported more than 250 decentralized applications (DApps). To date there have been no less than 103,000 ERC20 tokens developed on the network.
CONNECT WITH CRYPTO TRADERS
