Anyone that’s being attentive in the cryptocurrency space lately knows about Ethereum—or its tradable coins, Ether. It’s become a sturdy second-place name after Bitcoin, and though it hasn’t reached the broader popularity of the other (still synonymous with crypto in full), it’s got a large community that’s growing by the day.
And for good reason. In the last three months, ETH is trading at 600% of its early April-price, and was at 10x when ETH approached $400 in late June.
After months of intense growth, however, it’s stabilized and experienced its most significant drop in value (per ETH and market cap) in its entire history.
Yet, new speculative investors are hearing about Ethereum, Bitcoin, and other coins, by the day (one popular trading platform said it had a million new users sign up in June). So, is it too late to hop on and earn from an Ether investment?
No, it’s not.
But I think the days of growth that ETH saw in May and June are not going to be coming anytime soon. The rest of this article will explain why.
For me, it comes down to basics: there are enough people (investors) with enough belief in this technology to be widespread. Companies are part of this optimism; and Ethereum has enough innovation potential that it could be the backbone of technology we use daily. At a current $23 billion market valuation (total sum of its “tokens” and their value), there’s lots of room for growth if it becomes even half of what some think it might.
That’s the upside. And that’s what fueled the ETH rise this year. So why has it gone down?
A few reasons.
The first is Bitcoin itself. Like any younger brother, Ether is going to follow in the footsteps it sees. And so it’s value is tied together closely with Bitcoin—mostly due to investors seeing crypto (and blockchain) as an industry to invest in, not as separate sets of technology.
Bitcoin has seen a uptick in value too (the charts show j...