Ready to Rally? Ethereum Aside, All Major Cryptocurrencies Fall in Value
Apart from Ether, the native cryptocurrency of Ethereum, all major cryptocurrencies or the 10 most valuable digital assets in the global market have fallen in value.
Tokens Adding Value to Ethereum, Justifiable Market Cap
Over the past few months, since late 2017, many decentralized applications utilized at a large commercial scale have emerged. Apps like CryptoKitties, EtherDelta, and 0x have obtained hundreds of thousands of active users, by integrating seamless trading of digital assets.
On 0x for instance, a decentralized exchange protocol previously introduced by Coinbase co-founder Fred Ehrsam, successful decentralized applications and blockchain projects such as Aragon, ETHFinex, Radar, Melonport, Augur, Status, and District0x have launched, utilizing the 0x protocol for off-chain order relay and on-chain settlement.
As Ehrsam noted in his paper released in September 2017:
“Decentralized exchange protocols are also open standards that are easy for anyone to build on and customize. For example, dYdX, a protocol for decentralized derivatives, is being built on 0x. People can create any sort of custom product they want using these protocols which is then freely available for anyone else to trade, use, or modify.”
ETHFinex, the digital tokens trading & discussion platform of BitFinex, noted that the rising value and popularity of digital tokens and decentralized applications have added significant value to the Ethereum network.
“The tokens we listed today are adding fantastic value to the Ethereum ecosystem, disrupting power structures in many different industries, and we are proud to provide a venue for them to reach more supporters,” said the ETHFinex team.
Ethereum remains as one of the only few blockchain projects with a realistic and justifiable market valuation. Decentralized applications building on top of the Ethereum blockchain protocol have hundreds of thousands of active users and the Ethereum blockchain network is being utilized on a daily basis for payments, decentralized operations, and financial activities.
According to Etherscan, the Ethereum network has been processing more than 1.2 million transactions on a daily basis, more than the transaction volume of all cryptocurrencies in the market combined, including bitcoin.
Is the Cryptocurrency Market Ready to Rebound?
Within a three-day span, the market valuation of the cryptocurrency market fell from nearly $900 billion to $727 billion, experiencing a major correction that affected almost every digital asset in the global market.
Specifically, the 10 most valuable cryptocurrencies in the market such as bitcoin, Bitcoin Cash, and Ripple, that struggled to record major gains over the past week, will likely recover in the short-term, given that they have underperformed against smaller digital assets in the space for a relatively long period of time.
It is rare for major cryptocurrencies like bitcoin to fall by more than 10 percent within a week and not demonstrate early signs of recovery. Given that the daily trading volume of the cryptocurrency market still remains high, and the daily trading volume of bitcoin alone remains above $17 billion, the market could recover in the next few days.
Still, despite the current state of the market, smaller assets like 0x, Storm, Augur, and NEO have made large daily returns over 10 percent.
Click here for the current cryptocurrency market-cap.
Featured image from Shutterstock.
