Ethereum price weekly analysis: Scaling issues… still
Despite a strong week pricewise, Ethereum continues signs of strain resulting in reduced business confidence.
- Ethereum still dogged by scaling issues
- Trading volume shows good stability
- Market continues growth of dominance
Confidence remains high in Ethereum despite ongoing scaling issues. In addition to this markets and exchanges seem to have stabilised after an intense sell off late last year. Ethereum blockchain and Vitalki Buterin will need to pull their socks up if they are to prevent other initial coin offerings (ICOs) from launching on competitor blockchains.
Beginning the week at US$1,088.81 Ethereum (ETH) had another strong week pricewise. After a brief midweek low of US$920.54 ETH showed solid growth, maintaining an upwards curve to round out the week at a high of US$1,180.15. (All prices are from CoinMarketCap.)
ETH’s market capitalisation performed well again this week although its momentum has slowed quite a bit. At US$105.7 billion ETH looked set to have a strong week with market capitalisation. Those hopes seemed dashed after a fall to US$89.4 billion during a midweek slump.
The slump was short-lived, with ETH’s market cap rising strongly to a week-high US$114.7 billion.
In terms of total cryptocurrency market dominance, Ethereum continued to gain ground on bitcoin. ETH gained 1.18% of the entire cryptocurrency market capitalisation to stand at 18.91% total market cap dominance. Bitcoin’s market dominance dropped slightly from 35% to 34.47%.
Confidence may be spruiked by the news that ETH’s 24-hour trading volume has been in a relatively stable trading range. Throughout the majority of the week ETH’s 24-hour trading volume has bounded between US$3-4 billion going either side of that range only briefly.
Aside from these positive indicators, there is still some trouble for the Ethereum blockchain. As demand grows from new entrants to the market and further strain is placed on the Ethereum blockchain, transaction fees across most ERC20 tokens have been forced upwards.
That has led to a major and successful ICO being issued on a rival smart contracts blockchain Stellar. Mobius network held its ICO during the week and revealed that it reached its US$39 million hard cap on funding in under 2 hours.
The Mobius Network had initially planned to release the ICO on the Ethereum blockchain but due to technical issues surrounding the inability of the Ethereum blockchain to scale efficiently, the ICO was conducted elsewhere.
While Ethereum founder Vitalki Buterin is confident the necessary technical changes will soon be complete, it seems that business confidence may not have similar patience.