The crypto market continues to plunge after a few days of staying above $123 billion. The market has continued to lose its capitalization with one of the most prominent losers being Ethereum, who not only got stripped of its valuation but also lost its 2nd place on the top cryptocurrencies, rated based on their market caps according to coinmarketcap.com.
Ethereum which was being noticed for its rebound in the market has once again lost almost all of its regained valuation dropping to almost $115 (As of press time). Similarly, Bitcoin is hovering around $3,500 and according to coin360.io it is still showing signs of reds.
Most of the investors are exiting the space due to the bear market, hacking incidents and no regulations, which is why the trading volumes are decreasing. According to Alan Warms, the CEO of ChainFront, investors were drawn to the crypto space when the ICOs were still being raised, huge investments were pouring in and people were out to explore the markets. With ICOs out of the picture now, volatility increasing and trading volumes decreasing, the crypto “bubble” has burst. Alan said talking to BlockPublisher,
I think the bloom is off the rose. 2017s exuberance was driven by two factors – availability of easy ICO money and lots of new investors trying to catch the wave and not miss out. With ICOs shut down and the continued price decline of cryptocurrencies — the naysayers appear to be right in calling it a “bubble” etc., and I think we are firmly in a “crypto winter”.
The focus of startups has deviated from providing better applications to making money hence the applications do not interest the general public. According to Alan, the only way to trigger mass adoption is to bring in applications with more use cases, which are mainstream and widely used, like Amazon. Further explaining his views, he stated,
What I will say, however, is that it’s time for the industry to put up. We need some wins – mainstream, widely used, applications built upon various public blockchains. Even in the early days of the internet, there were applications that really gave visibility into the potential – early Amazon.com – which only sold books – for example. In 2017 doctors and lawyers and other high net worth individuals started getting into the space – for the most part, they’ve left. To get them back, it’s time to really showcase the potential of this technology through actual working implementations. That the focus of Chainfront.io – to enable mainstream adoption.