Ethereum News Update
While blockchain use-cases are filtering into the real economy, cryptocurrency markets have sputtered to a standstill. Prices are just moving sideways.
But before we delve into those forces, I want to emphasize that blockchain development is happening at all levels of business, even the upper echelon of the Fortune 500.
For example, Walmart Inc (NYSE:WMT) recently filed an application with the U.S. Patent and Trademark Office (USPTO) for delivery technology that uses a decentralized ledger for recording information. (Source: “United States Patent Application 20180061162,” USPTO, March 1, 2018.)
This expansion of use-cases should (theoretically) lead to higher Ethereum prices, but investors are still reeling from crashes in January and February.
Here are some symptoms of their despondency:
- Total cryptocurrency market cap is stable. The cumulative value of all cryptos is hovering around $460.0 billion, which is unusual given how reactive investors are in this space. I doubt that volatility will remain this low for much longer.
- BTC dominance is rising. Bitcoin’s share of total market cap rose to 40.7% by the time this article went to press. Contrast that with the start of the year, when BTC dominance was in the low 30s—it was a bull market back then. As such, this rise indicates a shift toward conservatism. Investors are uncertain about the future and, therefore, they are concentrating investment in Bitcoin.
- Trading volumes are down. Bull markets are typically driven by higher trading volumes, which suggests that the absence of that activity is worrisome. Investors are only swapping around $20.0 billion of crypto per day. Compare this to December, when a groundswell of enthusiasm led trading volumes above $70.0 billion.
I don’t expect these conditions to last, but it would be foolish to pretend they do not exist. Of course, they are holding back Ethereum prices right now. However, I firmly believe that fundamental forces prevail in the long term.
Analyst Take
We maintain our $1,500 Ethereum price forecast for the end of Q2.
Source: Price Confidential
