While currently at the time of reporting, the price of Ethereum has recovered above the $200 USD mark after the recovery of major cryptocurrency Bitcoin to $6,409 USD. Since July, ETH has seen a continuousdecline in itspricecomparatively to other major digital currencies.
Earlier, back in year 2017, Ethereum’s price surpassed the $1,500 USD mark and investors of ERC20 tokens on the Ethereum protocol achieved very profitable returns for their investments.
But,within thepast few months,theworth of ERC20 tokens have fallenconsiderably with the decreasing price of bitcoin. It is however most of the times observed that the volatility in the prices of bitcoin effects the whole crypto ecosystem very adversely.
The majority of expertswithin thecrypto ecosystem have attributed this declinewith theexcessive sell-off of ERC20 based blockchainprojectsthat initially helped Ethereum to raiseMillions and Billionsin ETH in their token sales.
As the Ethereum’s pricebegan tofalland thereafter thecryptocurrency market entereda significantdownfall, expertsaforesaidthat ERC20projectsbegan tosell their ETH holdings,inflictingETH toexpertise anadditionalintense downtrend comparatively more severe than other cryptocurrencies.
It is however evident thatthe decision of the company to sell high amounts of ETH in panicmostly contributed to the downtrend of the Ethereum, as seen now a days.
Earlier, Augur co-creator Joey Krug faced many criticisms by several investorswith the decision of the Augur team to sell their Ethereum at $0.7 USD to fund the operation of their project. However, If Augur hadsoldits holdings as Ethereum, since back in 2017,hemighthave raised billions of money for supporting his operational project.
The massivepanic sell ofof Ethereum initiated by ICO’s occurredas a result ofICOsthinkingto avoid missing out on a rally like Augur did. But,solelyis itimpossibleto predictthe hikeand downfall of the assets.
Rather than this, the approach of Augur, Xie, andseveral otherprojects, investors andassociated accelerators to prevent blockchain based projects operatinglike hedge funds toopen sourcedeveloper communitiesmightprevent such anintensedowntrend for Ethereumwithin thecoming future.