Rumours within my inner circle Crypto chat groups has recently indicated the price of Ethereum could drop to double digit in the up and coming weeks. Although these are potentially speculations, lets list out some reasons which may have lead to the drop of Ethereum.
ICO Dumping 160,000 ETH SOLD
Ethereum went from $20 last year to $1,100, that’s a 55X increase in return had you invested earlier in 2017. The growth of ETH last year was driven by the excitement of dAPPS ICO funding on the Ethereum network. When the ICO’s need to convert their funding’s into workable fiat then the price of ETH will come down. In September ICO sold 3x more than they did in August according to TrustNodes during the 13 September distribution. This is 160,000 ETH or $32 million USD in a matter of 10 Days! ICO Ventures sold 82,000 ETH on 4th September during a decline in the Crypto market.
283,000 ETH SOLD during squeeze time
The total aggregate sum of Ethereum sold by ICO’s during time of correction in recent weeks total around 283,000 ETH around $58 million USD during squeeze time.
Ethereum is no more “The Best” decentralized protocol
Move aside Ethereum and say hello to the new kids on the block. Having raised the biggest ICO ever at $4 billion it was a case of used and abused raising cash on Ethereum and switching on the EOS Mainnet. This provided Block One with a $1 billion war chest which rumour has it been converted into fiats or alternative investments. EOS which can handle up to 1 million transaction per second vs Ethereum’s 25 second. Recently EOSBET done a BETA on both platforms and ultimate settled for EOS due to the transaction per second user experience.
ETH Mining is no longer profitable
Mining ETH has become next to non-profitable for miners. Mining equipment, software and the setup takes far more cost than the value of ETH. With Ethereum transitioning from POW to POS soon the Ethereum’s Casper POS would reduce block time from 15 seconds to around 3 seconds as a result will increase the transaction capacity.
ETH dApp a pain for developers
Ethereum developers have to master the Solidity to program smart contracts which is a rare talent in the world of Developers. EOS has made building a dAPP as simple a s ABC and will have a wider pool of developer talent to build quality apps.