Ether (ETH) Price Drops 20% In Panic Crypto Market Selloffs

Omar Faridi
  • The Ether (ETH) price briefly dropped below $211 in the last 24 hours.
  • The $211 Ether price was last seen on July 30th, 2017 - just a few months before the historic crypto market bull run.
  • ETH is trading at around $225-$230 at press time, which is its lowest price since September 15th, 2017.

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Ether (ETH), the second largest cryptocurrency with a market capitalization of over $23 billion, has dropped to its lowest price since September 15th, 2017. The Ethereum blockchain’s native token is currently trading at $226.67 according to data from CryptoCompare.

At 16:00 UTC, the Ether price had fallen sharply to around $211. This is the lowest price for ETH since July 30th, 2017. As CryptoGlobe reported on August 13th, Ether dropped below the $300 mark for the first time in 2018, while reaching levels last seen in November of 2017.

Crypto Market Crashes As Goldman Sachs Shelves Plans For Trading Desk

In the past 24 hours, the ETH price has declined by nearly 20% - making it one of biggest losers out of all the major cryptocurrencies. Moreover, Ether has now lost all the gains it experienced during the historic crypto market bull run from last year. After trading at an all-time high of around $1,357, ETH is now down by over 84%.

As covered on CryptoGlobe, Bitcoin (BTC), the flagship cryptocurrency, also dropped below $6,900 after a mysterious whale (linked to the now-defunct Silk Road black market) shifted 111,000 BTC and Bitcoin Cash (BCH) to multiple different wallets.

The bitcoin price then plunged for a second time in the past 24 hours, and is now trading at $6,397.93 at press time. The sharp decline in cryptocurrency prices, including Cardano (ADA) which has dropped over 15% in the last 24 hours, is being attributed to Goldman Sachs’ decision to not move forward with its plans to launch a crypto trading desk.

Cryptos Will "Not Retain Value"

The large investment bank may, however, introduce a digital currency trading platform at some later point. Sources working closely with Goldman Sachs revealed that the institution may have shelved its plans for now due to regulatory uncertainty around cryptocurrencies.

As crypto prices crash, it’s worth noting that Goldman Sachs released an extensive report in early August stating that cryptocurrencies will “not retain value” because they cannot function effectively as money. The report also said cryptos did not deserve all the attention and media coverage they have received.

Advantages of Securing IoT Devices with Blockchain, Explained By Andreas Antonopoulos

Andreas Antonopoulos, a widely-followed Bitcoin (BTC) specialist, has argued that using blockchain to solve internet of things (IoT)-related security issues may not have any significant benefits.

Antonopoulos, whose comments came during a recent Q&A session, published on May 17, 2019, said it’s possible that a traditional database management system could work just as well (as a blockchain) when it comes to securing IoT-based applications.

Logging Information From IoT Devices Using Blockchain-based Systems Could Be Beneficial

However, Antonopoulos acknowledged that distributed ledger technology (DLT)-based systems could be useful in cases where “information is logged from IoT devices in a way that it maintains that information so that it can be changed in the future … so this [would be] an immutability benefit.”

He added that many people use the term blockchain to refer to databases that are able to register digital signatures (PKIs). Antonopoulos clarified:

I think that it’s important to clarify that the purpose of a blockchain is more than recording digital signatures, [or digital timestamping]. We’ve had PKI for 25 years. There’s nothing new there and it’s not particularly interesting to take a PKI database and make it public - unless you do something with it like … building a decentralized consensus system so you can have immutability.

He continued:

And then again, what problem are you solving? What are the problems in IoT security [that you’re trying to address?] A lot of people are trying to mash these two terms (IoT and blockchain) together.

According to him, there are great security risks involved when implementing IoT-based systems.

Solar Energy Trading On Blockchains

Responding to a question about the potential benefits of using an ERC-20 compliant token, instead of just using ether (ETH), when conducting solar energy trading on the blockchain, Antonopoulos first clarified that ETH is generated by mining on the Ethereum network.

He further noted that “if you have an ERC-20 token that’s related to solar energy, then perhaps you can mine, or mint, or issue that token in response to people generating energy. So, they can earn that token directly when producing energy. But the only way you can really measure how much energy somebody is producing in order to issue a token is to buy and use that energy. And in that case, [you] could just pay in ether.”

Antonopoulos also argued that tokens are not required in all cases and that users should exercise caution when new projects are trying to offer a native token.

“Markets Are Just Human Behavior”

The data communications and distributed systems graduate from the University College London also pointed out that blockchains “operate as markets” and they operate by “using markets.” For example, there’s a market for cryptocurrency mining which is based on a blockchain network, Antonopoulos explained.

There are also markets, Antonopoulos noted, for proof-of-work (PoW)-related mining profitability and “there are currency markets within the cryptocurrency space.”

He added:

All of these markets exist because of blockchains. [Therefore,] markets are a critical application of blockchain technology. Blockchains will create better, more fair, more transparent, more open markets...wherever markets are needed. Interestingly enough, even in places where markets are needed but not wanted….[For instance,] drug markets...Why? Because drug markets are [just] markets...Markets require two things in order to happen: supply and demand....Markets are just human behavior.