How Should We View ETH Falling Below $200?
In mid-September, the Ethereum price fell below$200. Although ethereum price today have picked up to more than $200, the overall performance has not been good recently. So how should we treat or explain the price of Ethereum falling below $200?
Since the team is working, and the wages need to be paid with fiat currency (USDT). Therefore, many ICO project parties dump a large number of eth coins and exchange them into fiat coins for wages, which causes Ethereum to fall.
At the earliest, there is only one kind of cryptocurrency-bitcoin, and many bitcoin coin was used to raise funds. In the second half of 2014, the founder of Ethereumraised 31,000 bitcoins, which had a market value of 18 million U.S. dollars. Then he used the bitcoin to pay for the development of Ethereum. After one year, Only 500 bitcoins remain on the account of the Ethereum Foundation.
It is common to see in the cryptocurrency community, because in addition to anonymous projects like Bitcoin, there are many projects that are not developed in the open source community, decentralized social collaboration, and the overall scale of fundraising continues to expand. As the currency of the raised funds, it is naturally subject to huge selling (paying) pressure.
As ICOs are so hot last year, there are hundreds of projects with large amounts of funds raised, the Ethereum price naturally plunged with so many projects selling eth coins,and the ethereum market is bleak. Moreover, it should be noted that during the decline of Bitcoin, Ethereum was still very strong. It once rushed to a thousand dollars. As the ICO boom faded, it naturally turned into a weak position and made up for it. This kind of decline will have a full-fledged effect on both Bitcoin and Ethereum, opening up a long bear market and re-accumulating potential energy.
For the ethereum coin, it can remain its price at this level with the ICO boom recede, making it a position as one of the core currency of the cryptocurrency community.
The development route of Ethereum is divided into four stages. The third stage is divided into two, namely the Metropolitan Byzantine (completed) and the two versions of Constantinople. The second version involves the conversion of PoW into PoS. which has recently been postponed to 2020, the current news is that this version of Constantinople will be upgraded this year, but it does not include the EIP of Casper (PoS), but it is an adjustment to reduce the block reward. I don't think this is a good thing or a bad one because it's completely usable, and it's more important to improve the performance of R&D and fragmentation.
In general. Ethereum is not dying even its price declined dramatically, this is only because the ICO boom is fading. If hundreds of teams can create some breakthrough innovations, then it is possible to drive the trend of the market, but this is uneasy, because it still needs to pay wages in the short term or even for a long time.