Recently, Ethereum saw an abrupt price dive.
But what caused it?
Apparently, Initial Coin Offering (ICO) projects have sold 3x more Ethereum than in August. This was stated in a research by TrustNodes on September 13.
160,000 ETH has been sold over the last few days. This amounts to around $33 million. According to TrustNodes, ICOs have sold 82,000 ETH on September 4 and consequently, the price saw a sharp decline in the market.
In August, the average amount of ETH sold by ICOs ranged from 1,000 to 5,000 ETH. Sometimes it would jump to 10,000 ETH but nothing too extreme. As the time went by, the volume at which ICOs have started to sell their ETH has increased.
TrustNodes states that the total amount of Ethereum sold over the past 30 days by ICOs stacks up to 283,000 ETH. It’s almost $62 million when Ethereum sits at around $218 when writing this.
Moreover, the researcher states that the highest “contributor” to the Ethereum sell-off is the Digix ICO. On paper, the project holds around $150,000 million which is a greatly larger than the total market cap of DigixDAO coin. The market cap of the coin is $69 million, according to Coinmarketcap.
Yes, ICOs have gathered large bags of Ethereum.
What about the general situation of ICOs?
Well, this week Cointelegraph stated that ICO funding has hit the largest decline in 16 months. The startups have raised around $326 million in August which is an even smaller amount than in May 2017.
It’s true that people are losing interest in ICOs when the bears have taken over. It’s just too risky…
ICOs are mainly based on Ethereum and they have been described as the main reason for a sharp ETH decline. Some projects have liquidated their funds in fears to lose money in a bearish market, others needed to cover business costs. Today, we saw that Ethereum has jumped up by 16% to 218$ at the time of writing this. It has dipped below $170 which was the lowest price in 2018.
If we were to continue the topic of the Ethereum price drop, here’s a list of Top 10 Largest Ethereum Spenders over the last 30 days that might have contributed to the sharp downfall.
In other, good news, the Ethereum co-founder sees huge potential in cryptocurrencies. He believes that the cryptocurrency market still has a lot of room for growth. According to Joseph Lubin, the crypto space is still evolving and is here to stay.