The Largest Drop in Value in Ethereum’s History
At the times of bullish periods for Bitcoin and altcoins, stable coins demonstrate the lowest correlation with Bitcoins. What concerns larger cryptocurrencies, they are highly correlated with Bitcoin’s scenario. The pioneer for block chain smart contract is among them. The same correlation takes place at the periods of Bitcoin’s breaks. Nowadays most of cryptocurrencies are reporting about severe loses. What is the current situation with Ethereum?
Ethereum – 55% loss during the day
On March 13, Ethereum experienced the greatest loss in its history; the rate of the coin dropped to 55% during the day. The similar ‘black’ period for the cryptocurrency took place in January 2018 when there was announced its 48% loss. The last also covered the time of one day only to create a huge wave of discontent by crypto followers.
Ethereum skeptics stated that it should continue decreasing up to the zero point. However, it did not happen. On the other hands, optimistic experts say that it is a great opportunity for users to buy 32 coins. The fact is that purchasing 32 Ethereum coins enables a buyer to become a validator on the Ethereum 2.0. New Ethereum will replace mining process, which is familiar for users now, and use Proof of Stake consensus; validators will be the ones who maintain the network.
Ethereum price as a percentage of Father Bitcoin
In most cases, the prices for Bitcoin and Ethereum are synchronous as influencing factors are almost identical and often interconnected; one pushes forward the other. Currently Ethereum trades at around 2.5% of Bitcoin. The highest number was observed in early 2018 when the coin traded at more than 15%. There is no certain dynamics and total assurance in the prediction tool.
The possibility of Ethereum’s decrease is really low; the altcoin does not have its own dynamics, it simply follows Bitcoin’s fluctuations. Moreover, much attention is paid to the impact of the halving in May, the Bitcoin’s block reward. This is the event where the number of generated Bitcoin rewards per block will be divided by two. A number of crypto experts comment it as the efficient support for growth.
If the price of Bitcoin falls, Ethereum will become cheaper and cheaper as the last one does not have the status of the etalon cryptocurrency and will always get maximum the silver reward in the race. Vitalic Buterin, an Ethereum co-founder, criticizes stock-to-flow referring to the trading of Bitcoin and USD at an average of $100,000 between 2021 and 2024.
He claims that the vast majority of press articles predicting crypto rises and falls are post-hoc rationalized nonsense, there is no need to beat around the bush The crypto expert announces the number of 95% of daily publications, then a tiny per sent is left for the proper analysis. Unfortunately, it is unclarified what Buterin’s attitude to the remaining 5% is and what these ones include.
Rising every time one falls
Vitalik Buterin and other developers report that in summer 2020 they are to launch the version of Ethereum 2.0, next system-wide upgrade. The team states that the number of validators could run into the millions. Ethereum 2.0 validators can expect to earn from 4.6% to 10.3% as rewards for staking on an annual basis.
This month Ethereum did experience the greatest fall in its history, but our greatest glory is not in never falling, but in rising every time we fall. That’s what Confucius said. Crypto enthusiasts are concerned about the current situation, but true believers know what the power of digital money is and it is just a matter of time in what pace to move in their material gains.