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.

Ethereum Was Behind 85% of Dapps' $12 Billion Volume in Q2 2020

The total transaction volumes of decentralized applications (dapps) in the cryptocurrency space hit $12 billion in the second quarter of this year, rising by $4.5 billion compared to the first quarter. Etheruem dapps accounted for 85% of the volume.

According to DappRadar’s Industry Review report, there are more than 70,000 active wallets across 13 different blockchains interacting with the cryptocurrency space. The top blockchains were EOS, TRON, and Ethereum, with the latter representing $10.2 billion of the $12 billion volume seen in Q2.

Ethereum’s large transaction volume was partly fuelled by Compound and the launch of the COMP token, which led to a “yield farming” trend, in which users were interacting with the protocol as much as possible to receive COMP tokens. Compound saw $1.2 billion move through it.

The yield farming trend saw Ethereum gas prices and transaction fees increase, which according to the report did not stop Ethereum dapps from thriving in general. It did, however, contribute to an 80% drop quarter-on-quarter for ETH gaming dapps, as high gas prices are “killing” their activities on the cryptocurrency’s network.

Despite Ethereum’s growth, EOS and TRON (TRX) dapps have also seen their activity increase in the second quarter of the year. According to the report in only three months, TRON’s transaction volumes on decentralized applications surged by over 17,200%.

The rise was largely attributed to Oikos.cash, a TRON-based version of the Compound lending protocol.  While TRON’s DeFi growth has been notably, DappRadar pointed out that most dapps on its blockchain are still in the “gambling” and “high risk” categories.

The EOS blockchain has still been enduring the effects of the EIDOS token airdrop, which put the network into “congestion mode.” The airdrop clogged the network and as a result, from 2019 to 2020 wallet activity on decentralized applications dropped 53%.

So far this year, $1.9 billion have been transacted on decentralized applications using the EOS blockchain, thanks to two dapps: Crypto Dynasty and Upland. DappRadar’s report also shows that two other blockchains are growing thanks to gambling dapps: WAX and ThunderCore.

Featured image via Pixabay.