Ethereum’s price woes continue despite growing adoption – is it a buying opportunity?
Despite presenting a 30-day loss average of nearly 10%, ETH’s ytd (year-to-date) profits still lay in excess of 250%
- The crypto industry as a whole seems to be facing a massive pullback at the moment, especially with startling inflation figures continuing to emerge globally.
- Ethereum’s mainstream use-cases have continued to grow despite its sluggish price action.
- ETH’s bi-weekly losses currently lay at a staggering 19%.
Things only seem to be getting worse for Ethereum price wise, with the world’s second largest cryptocurrency by total market capitalization dipping from nearly AU $2,700 to around AU $2,500 over the last 24-hours, thus showcasing a daily loss ratio of around -5%. At press time, Ethereum is trading for AU $2,550.
However, this ongoing lack of positive price action is not localized to ETH only, with the total market capitalization of the crypto sector taking a massive hit during the last 30-day haul, plunging from US $1.62 trillion to around US $1.33 trillion. This downturn seems to stem from a lack of global investor confidence, especially as startling inflation figures continue to be unearthed, seemingly with each passing day.
As pointed out by Finder earlier, thanks to the Federal Reserve’s decision to keep interest rates around zero for the better half of the last year and a half, the ‘consumer price index’ — which serves as a key metric to gauge US inflation levels — has risen to its highest in nearly three decades. However, that’s not all, the numbers are equally bleak across Europe and Asia as well, with UK inflation numbers also rising to their 3-year high’s recently.
ETH adoption continues
While positive price momentum continues to be a problem for Ethereum, the premier altcoin’s mainstream adoption seems to be going on as usual. For example, the global billion-dollar beauty industry seems to have taken a real shine to the asset, with Ann McFerran, CEO and founder of Glamnetic, recently revealing her company’s decision to start accepting ETH (alongside DOGE and BTC).
Furthemore, in a somewhat surprising development, Aave founder Stani Kulechov recently released a statement claiming that he is considering building a Twitter-esque platform on the Ethereum blockchain. The announcement came just hours after Jack Dorsey tweeted that he and his team are actively working on creating a new Bitcoin-centric financial services platform that shared certain functional/operational similarities with Aave.
After scaling up to its all-time-high value of US $4,300 earlier in May, things have not looked good for Ethereum, so much so that the currency is now exhibiting monthly losses in excess of 11%. Therefore, it will be interesting to see what lies ahead for the digital asset in the near-to-mid term.
Disclosure: The author owns a range of cryptocurrencies at the time of writing