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Ethereum Statistics 2018

Recent Statistical Trends about Ethereum Paint Gloomy Picture

Newly released statistics pertaining to the cryptocurrency Ethereum show that the once booming market is beginning to lose steam. Though the digital currency, which advocates for decentralization of economic power, among other extreme economic views, enjoyed nearly exponential Ethereum ETH growth over the past few years, it has since crashed. According to Ethereum facts at Trend Statistics and stastista, the currency is down more than 50% since January.

This sharp decrease in price has seemingly caused public interest in Ethereum to ween as well. Bitinfocharts.com, reports that google searches for the word “Ethereal” have decreased substancially (by over two-thirds) since January. This spells bad news for the currency, which enjoyed steady growth in past due to everyday buyers, rather than institutional investors.

This drop also does not seem to be caused by any kind of oversupply in the market, as is often the case when conventional financial instruments undergo long-term decline. The website etherscan claims that the total supply of Ethereum has continued to grow logarithmically since its inception, and that no unplanned releases of more of the currency have occurred.

However, lost in the seemingly endless slew of negative data regarding the currency, there is some good news to be found: For instance, cointelegraph.com, perhaps one of the more famous of the several digital currency information sites, reports that ethereum’s market cap, or overall value, is still 69.3 billion USD. This makes ethereum (also known by its ticker symbol ETH), the second most valuable cryptocurrency in existence. Furthermore, worldcoinindex.com discloses that the currency is traded one several of the most well known exchange sites, including kraken.com and coinbase.com. The coin also enjoys high liquidity, with an average trading volume of 2.05 billion USD.

Even more encouraging are several so-called “crypto gurus,” that is, experts who have made fortunes trading cryptocurrencies in that past, who claim that ETH is only suffering temporary losses and should rebound within the year.

However, the overall outlook for ethereum, like many other cryptocurrencies, remains hazy at best. These assets remain extremely volatile, which makes many institutional investors hesitant investors. Additionally, these coins both lack intrinsic value, and have a reputation of being used for criminal activities. This perception has caused the vast majority of the public to shy away from investing in such instruments.

In order for coins like ethereum to succeed in the long term, the above stats show that in requires wider adoption: Ether should be part of everyday people’s investment portfolios, 401ks and more. However, as of right now, it is only really traded within a certain subculture around the world, that of technology enthusiasts and economic idealists. This is the fundamental flaw in assets such as ether which has caused it to drop so significantly while maintaining a high market cap compared to its peers.

Change, however, is in fact in the air. Websites such as coinbase have begun opening the door to regular investors by allowing users to buy and sell cryptocurrencies such as ethereum without needing a substantial technical background. In addition, financial media companies such as Bloomberg and CNBC have begun to report on news related to ether and other cryptocurrencies, thus normalizing what has been regarded as an extremely niche form of investment.

To its credit, the founders of the ethereum currency itself have remained active throughout the years, improving the usability of the coin while at the same time reaching out to other major players in the financial world in order to bolster its status as a legitimate currency. One seemingly counterintuitive flaw, however, stems from the fact the founders may have been too generous in their business model: Etheruem was released as a so-called “open source” project. This means that the entire process through which the coin was created is available online for the public to use as they see fit. This has caused several similar cryptocurrencies, known as “alt coins” to sporadically appear throughout the internet, in some cases steering significant investment away from ether.

Overall however, ethereum, along with its predecessor bitcoin, is regarded as one of the most legitimate of the cryptocurrencies. And while recent statistics indicate bad news for the coin, the reality is that no one really knows what will come next for it. One of the most repeated mantras of the financial industry is that “correlation does not imply causation.” That is, just because recent data has shown that ethereum’s price has dropped significantly, it does not necessarily mean that it is a weakness in the currency itself. Rather, it may be that the coin is simply in a rut. In my opinion, as long as the financial industry continues its trend towards cryptocurrencies, ethereum will be able to make up for its steep losses this year in the very near future.