Ethereum

Is it possible that Ethereum is not in a bubble?

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Despite Ethereum’s meteoric rise in 2017, some experts say it’s not a cryptocurrency bubble.

The cryptocurrency sector has seen tremendous growth in 2017, and Ethereum is a perfect example. The world’s second-largest digital currency by market cap started the year at just $8 per coin. At the time of writing, it’s hovering around $333 per coin. That’s a nearly 40x gain in less than 12 months.

According to many analysts’ estimates, Ethereum could be a sign that the cryptocurrency world as a whole is in a bubble.

The fact that bitcoin continues to break new price records and many other cryptocurrencies have seen similar gains only adds fuel to the fire. Yet a recent Forbes article suggests that ethereum may not be part of a bubble.

Digital Currencies in a Bear Market

Although Ethereum, Bitcoin, and other leading digital currencies have made huge gains this year, they are actually struggling to some extent. bear market. This is because several of these cryptocurrencies have fallen by around 20% from their 52-week highs. This is a factor that proponents of the movement point to as a sign that ethereum may not be in a bubble.

Although the cryptocurrency market has reached a market cap of around $200 billion this year, that’s still small compared to the tech bubble of the early 2000s. The tech bubble reached around $1.7 trillion before bursting. Ethereum seems relatively small in comparison given its total value. market capitalization is around 30 billion dollars.

Comparing Ethereum to other markets also shows that it is not as big a market. The U.S. rare coin market, for example, is worth about $5 billion a year, while global sales in this area are about $8 billion. And the global art market generates about $50 billion in annual sales, according to Deloitte.

Ethereum’s Link to Blockchain Applications Supports the Currency

Economist Harry Dent believes that Ethereum is “the most credible” of digital currencies, “because it makes it easier to create new blockchains. It advances the whole industry.”

This is because Ethereum is not limited to a particular number of coins and the Ethereum platform allows developers to create new applications, including smart contracts and initial coin offerings. (See more: Ethereum’s ‘Initial Coin Offering’ Trend Sees Phenomenal Success.)

All of this suggests that Ethereum could have much broader implications for the tech space than other digital currencies, and could even be more important in this space than as a digital currency. CoinShares CEO Ryan Radloff said that “the community that has been clamoring for the product has come out in force,” and it seems likely that Ethereum’s backers will continue to support it for the foreseeable future.

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