Well, well, well, looks like we're witnessing the burst of the Ethereum/ERC-20 tokens bubble.
Take a look at this chart.
Ethereum and Bitcoin have been inversely correlated since the beginning of January;
Last June, Bitcoin's market dominance plummeted below 40% while Ethereum's rocketed up to 31%, fueled by exuberant bullishness, greed and irrational hype for ERC-20 tokens;
Bitcoin is now "bouncing" back up to re-assert its dominance over the market;
Meanwhile the overall altcoin market is looking bearish and has produced what could be its first lower high:
credit to @imrane for bringing this chart to my attention
My analysis :
Ethereum has lost lots of its appeal for day-traders and greedy new money because ICO have become lackluster opportunities for making a quick buck;
Nevertheless, the market is still flooded with illiquid ERC-20 tokens, most of which are being dumped for BTC by disenchanted investors;
I believe next year will see market sentiment shifts towards yet another cryptocurrency (EOS? ETP? NEO? something else?) as most Ethereum-based projects will go bust and start to cash out their ill-acquired ETH on the market, potentially triggering a wash out and flat-lining most ERC-20 tokens;
Only very few Ethereum-based tokens will survive this market cycle, i.e the ones that have engineered a good product which truly benefit from a token economy (and very few have).
Folks, we might just be at the very start of a new, exciting market cycle.
As always, follow, re-steem and upvote if you like what you see
#cryptocurrency #bitcoin #ethereum #steem
Dan @tradealert
I like your take on ETH. But it's hard to imagine it displaced as #2. Ethereum's tech offering here is sound even if most ICOs don't deliver on value. What do you think is the best player to replace Ethereum's crowd funding model?
I think you're right about ETH staying in #2 for a while, however, as regulations around ICOs develop, it's possible we see private blockchains take over ETH as regulation-friendly funding platforms (look at Filecoin's ICO for example)... of course this is just my opinion