Despite rolling out the Byzantium hard fork successfully, the price of Ether is yet to rebound to its highest mark of $300. It’s only in September tha
Despite rolling out the Byzantium hard fork successfully, the price of Ether is yet to rebound to its highest mark of $300. It’s only in September that the price of this native cryptocurrency rose to about $400, increasing optimism towards the Ethereum network in major countries like China, Japan and South Korea. But that was before China declared a nationwide ban on the initial coin offerings (ICOs) as well as cryptocurrency trading.
The price of Ether has since declined from the all-time high of about $390 to a dismal $280, even as the cryptocurrency market underwent some significant corrections in the past week. Major platforms like Bitcoin, Bitcoin Cash, Ripple and Litecoin have experienced the pinch of the decline in the past few days, with Bitcoin’s value decreasing from $6,199 to $5,860.
Market expectations on Byzantium hard fork in developing Ethereum
Just like the previous hardfork rallies and executions, the Byzantium was expected to set a positive trend in terms of Ether prices, both on the short-term and mid-term. Ethereum co-founder, Vitalik Buter did emphasize that Byzantium-following its launch- has been a success and further stated that the hardfork has been stable since it was rolled out earlier this month.
With the major progress made by Enterprise Ethereum Alliance (EEA), market analysts expected the price of Ether to increase significantly. Sberbank, Russia’s largest state-owned bank and a leading global financial institution, is among the players that have joined EEA in a bid to develop applications relevant to the Ethereum network.
According to Igor Bulantsev, Sberbank’s senior vice chair, the alliance is meant to broaden the cooperation between major global players through expanding the Ethereum platform. He further stated that with the development of the alliance, the banks’ expertise can be of great benefit to members. Bulantsev also emphasized on the role of the bank in influencing the enhancement of the platform and pushing for its growth in the larger corporate sector.
JP Vergne, Ivey Business school professor, had previously stated that numerous studies have found developer activity to be the most accurate indicator when it comes to predicting Cryptocurrency price trends. Considering the level of activity and innovative developments around Byzantium hardfork in 2017, including second-layer solutions such as Plasma, the resulting ecosystem for decentralized applications is expected to be more efficient.
Vergne says the amount of developer activity is by far, the best predictor of cryptocurrencies exchange rates.
Reasons for the sluggish recovery of Ethereum price
The US Ethereum market took over South Korea last week, to become the largest Eretheum market controller with over 33% of the market share. Throughout 2017, South Korea had dominated the Ethereum market thanks to the increasing demand for Ethereum by the country’s crypto currency and financial communities.
The declining interest towards Ethereum in South Korea was mainly fuelled by the emergence of other strong cryptocurrencies like Qtum and Zcash. Though Bitcoin and Ether are the main cryptocurrencies, majority of investors and traders are now looking for a diversified portfolio of assets.
It will be interesting to see how the Ether prices will play out in the mid-term. But the price and value of Ether is likely to rebound sooner or later considering the success of Byzantium hardfork as well as the rapid adoption of the Ethereum network.