The market value of the Ethereum network has fallen to the level before the sharp rise in 2017. The total value of all existing ETHs currently accounts for less than 8% of the entire cryptocurrency market.
In the heyday of Ethereum, this smart contract platform accounted for more than one-third of the entire digital currency market. This makes Ethereum supporters claim that the ETH market value will surpass Bitcoin in the so-called "flippening". At the time of subversion, Ethereum accounted for 31% of market capitalization, and Bitcoin was 39% at the time. Today, the market value of Ethereum is only 7.98%, while Bitcoin is 68.8%.
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As Twitter user @StopAndDecrypt emphasized earlier today,
ETH's share of the entire cryptocurrency market has fallen to 7.86%. This is the lowest level since the beginning of March 2017.
The strong interest in Ethereum's smart contract platform has sparked a lot of speculation. By June 2017, Ethereum's market share has exceeded one-third of the entire digital currency market. The newly formed Enterprise Ethereum Alliance (EEA) has seen investors see interest from Ethereum in large companies, and investors have seen the huge gains that early Bitcoin speculators have gained in Ethereum. Companies such as Toyota, Delottie and Royal Bank of Canada have joined Ethereum's territory with other well-known companies and blockchain startups.
At the same time, the guilt around how to expand the size of the network also plagues the Bitcoin community. This may be one of the reasons why Ethereum’s market share is rising, because many people worry that a new technology will replace Bitcoin’s dominance before Bitcoin’s number one cryptocurrency can solve its own problems, thereby making bitcoin assets Distribute to other projects.
However, the so-called "flippening" (that is, the replacement of Bitcoin by Ethereum), which was supported by many Ethereum supporters, never happened. After Bitcoin’s successful hard fork (the bitcoin cash was born in August 2017), the funds re-inflowed into Bitcoin, and those who disagreed with it left Bitcoin and switched to Bitcoin Cash (BCH) and later Bitcoin. SV. Progress from the enterprise Ethereum Alliance (EEA) has also slowed down, and many companies are interested in using the private version of the Ethereum network. As a result, their participation is unlikely to push up ETH prices by launching some killer apps, as many have hoped.
More importantly, the shortcomings of the Ethereum network were also very publicly displayed at the end of 2017. The first truly popular decentralized application, CryptoKitties, introduced on the blockchain led to a surge in network usage and eventually stagnation. Obviously, Ethereum still has a long way to go to support the world-changing application that never stops, but it is this application that has attracted many early investors to support the project.
Since then, in addition to several short-term fluctuations, Ethereum's market share has gradually dropped to the current level. The years of bear market, coupled with the lack of meaningful updates for developers and the fact that the world has not changed, has led to a sharp drop in investor interest in Ethereum. Bitcoin, along with other so-called competitive currencies, is the beneficiary of this decline. The market value of Bitcoin has recently risen to the highest point of market dominance in more than two years, reaching 68.9% by the time of publication.