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Bull Run Bad News For Ethereum

 
Bull Run Bad News For Ethereum
Ethereum / Breaking News

On the surface, the recent positive moves in the market might look good for cryptocurrencies like Ethereum, however once you scratch the surface just a little, it becomes clear that actually things may not be working out as well as Ethereum investors might hope. Ok, so in terms of value and their investments at the moment, things look good. When you look at the market capitalisation and the potential longevity of Ethereum hoever, things start to look a little less promising. 

Because of the bull run and because of the heightened interest in Bitcoin, the market capitalisation of Bitcoin has gotten stronger. This means that across all of the cryptocurrencies within the markets, the share of them that is Bitcoin has increased, in turn, causing Ethereum to decrease. Market capitalisation is important because it gives tokens notoriety and it gives them a sense of security. 

According to NewsBTC:

“The market capitalisation of the Ethereum network has fallen below the levels observed prior to its epic price run up in 2017. The total value of all Ether (ETH) tokens in existence now accounts for just less than eight percent of the entire cryptocurrency market. At the height of Ethereum hype, the smart contract platform accounted for over a third of the wider digital currency market. This caused its proponents to claim that it would overtake Bitcoin in a so-called flippening.”

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The flippening is supposed to mark the start of an Ethereum revolution when Bitcoin finally sinks below Ethereum, and Ethereum becomes the world’s chosen cryptocurrency. Judging by these statistics, however, this is becoming less and less likely to happen by the day. So, now you might be asking what this means for investors right?

“The bear market years, along with a lack of meaningful updates from developers and still no world-changing applications has caused investor interest to drop significantly. The beneficiary of this drop, and those of other so-called alt-coins, has been Bitcoin, which recently rose to its highest point of market dominance in over two years.”

What this means for investors is that Ethereum seems to be getting weaker as people fall out of love with it. When this happens, investors sell off and put money into other cryptocurrencies like Bitcoin in this instance. This strengthens Bitcoin and also gives back to all of those who have invested in it, as a result of this, the value of Ethereum decreases. One thing can be said, if Ethereum's market capitalisation was stronger, it would be enjoying a far heavier bull run than it is right now… is this a sign of things to come? 

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