has fallen below $2,000 for the first time in a month. HODLers hope that today’s pullback doesn’t signify the beginning of a longer-term bear market.
The world’s second-largest cryptocurrency by market capitalization has fallen briefly below $2,000 before it became accustomed to the price in April—once in mid-April and then again in mid-May—but each dip lasted mere hours.
Ethereum: crypto with honors
Launched at the end of July 2015, Ethereum popularized the smart contract—self-enforcing financial contracts executed on the .
From came : the unique cryptocurrencies, mostly based on Ethereum, started a craze that helped Ethereum rise to $4,100 this year.
This bull run, Ethereum’s smart contracts spurred the development of Decentralized Autonomous Organisations. DAOs use automated decision-making processes and smart contracts to allow an anonymous group of people to govern themselves like real organizations.
Although thieves drained the original DAO of $55 million in 2016, DAOs are now a mainstay of . Polychain Capital CEO Olaf Carlson-Wee estimates that DAO’s have raised around $75 billion. The former employee calls them “the second big breakthrough in blockchain after digital cash.”
is expected to drop later this year. The upgrade promises lower fees, faster transaction processing, and a reduction in its overall energy requirement by more than 99% as the network moves from the energy-intensive proof-of-work consensus mechanism to a greener proof-of-stake model.
Even if things look bleak, Ethereum’s long history proves that it’s still an invaluable part of the ever-diversifying cryptoverse.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.