Skew Markets data shows that Ethereum market volatility is at a three-month low compared to Bitcoin. Many other indicators also indicate that Ethereum will soon face a “danger zone”.
Ethereum reduces volatility
To a certain extent, volatility is a necessary evil and a feature that needs to be accepted when participating in the cryptocurrency market.
- A picture to understand the blockchain: expansion, going to sea, ending, a decade of exchange history
- Which company likes to hire people the most? Which jobs are most popular? 2019 Blockchain Overseas Recruitment List
- Bakkt launches a forward-looking look at how the “Crystal New York Stock Exchange” starts the bull market
- Xie Jianhui, Member of the Standing Committee of Hunan Provincial Party Committee: We must seize the opportunity to cultivate the development of blockchain and create new growth points
- Sina's "Oasis" Thinking: The key to the development of the cryptocurrency industry lies in the business ecology behind it.
- A paper on the role and advantages of Bitcoin in institutional portfolios
Volatility makes it easy for bearers to experience significant price changes in traders, and price volatility can bring considerable returns to their investments. A lower volatility trend means that traders are not interested enough in the asset, but are looking for something more "exciting".
Market data provider Skew Markets gave a low-volatility chart of Ethereum for three months relative to Bitcoin, saying that the lowest volatility (relative) in history is coming.
Compared with Bitcoin, Ethereum only rose 31.77% this year, while the price of Bitcoin soared more than 160%. This may also trigger a sell-off in the short term and cause traders to turn to more profitable options.
Network activity slows down
With the enhancement of the safe-haven properties of Bitcoin and gold in the global recession, Ethereum is still largely ignored. The data collected by Etherscan from the analysis platform "confirmed" this.
(Ethernet chain trading situation)
The number of chain transactions on the Ethereum blockchain has fallen to the level before the bull market in December 2017.
The mining power has been rising hard since February this year.
(Ethereum changes in computing power)
Ethereum will be "full"?
According to Babbitt’s earlier report, Ethereum co-founder Vitalik Buterin said in an interview that Ethereum space is “will be full” , which will lead to higher transaction costs, and corporate users will hesitate to promote their applications.
“Extensibility is the main bottleneck because the Ethereum blockchain is almost full. As the number of participants increases, the blockchain (space) will not only become fuller, but we will also compete due to trading space. Transaction costs are inherently high, but may increase exponentially as the number of participants increases. We cannot prevent people from participating, so scalability improvements can greatly improve this."
In addition, due to the additional issuance of USDT in Ethereum, the network utilization rate exceeded 90% . Buterin said that the Ethereum community should launch a social media campaign on Twitter and Reddit to raise the gas cap. This will help alleviate the pressure on the Ethereum blockchain.
Is Ethereum going to die?
So does this mean that Ethereum has nothing to do in terms of capacity expansion, and there is no advantage in terms of currency price? For the time being, we cannot give an absolute answer.
In fact, the “quiet period” currently facing Ethereum is the result of the 2017 ICO frenzy. At that time, due to market sentiment, a large number of projects were issued based on the Ethereum network. After two years of baptism in the community and the market, investor sentiment returned to rationality, and most of the projects failed to fulfill the original ambitions, which led to a large number of deaths.
It has been said that the biggest application of Ethereum is ICO, and today's Ethereum is in a bottleneck because it can't find its direction. Fortunately, Ethereum's footsteps in technology development have never stopped. For example, it plans to open the first step of the PoS road early next year. Expansion technologies such as sharding and Plasmas are also being developed steadily.
What is the future of Ethereum? We still need to give more time.