The crypto market has added $5 billion to its valuation over the past 24 hours which is a slight recovery from the $106 billion valuation it was at. However, this market recovery seems to have had no impact on Ethereum (ETH) and Bitcoin Cash (BCH) both of which have continued to fall in value – each of them has recorded a 3 percent value drop against the U.S. dollar.
Ethereum’s price on December 9 dropped from $97 to $93 after it failed to sustain the short-term momentum it had garnered the day before. In fact, since its daily peak, the digital currency’s value plunged by over 6 percent against the U.S. dollar, from $100 to $93.
Bitcoin Cash, on the other hand, has demonstrated a weakness in its short-term price trend something that has seen it lose nearly half of its value in just two weeks. Since November 6, the digital currency’s price fell from $200 to $100 which is a whopping 50 percent decline.
Why Is This Happening?
It is worth noting that the gap between Ethereum, which was once the second most valuable digital currency, and Ripple’s XRP which is currently the second most valuable cryptocurrency, has increased by a whopping $3 billion in just three weeks. This was quite unprecedented but technical indicators imply oversold conditions. Still, the sheer intensity of price plunge of the two digital currencies (ETH and BCH) have made it very difficult for them recover or even maintain a low-price range.
Bitcoin Cash, which boasts of one of the largest transaction capacities in the industry has fallen behind mostly due to very limited merchant option. This was its main selling point when it was first launched.
It seems that as crypto investors back out, the digital assets that have struggled to see a noticeable increase in adoption, usability and accessibility are losing harder than bitcoin. In Ethereum’s case, while it has, to a given extent, been able to successfully create an efficient infrastructure for decentralized applications, it struggled to push Sharding, Plasma and Casper, its three most significant solutions to scaling, further. In addition to this, the ERC20 tokens, which are in most part based on Ethereum, also failed to deliver products that were suitable for casual and mainstream users despite Ethereum’s dominance in the smart contract sector.
Joseph Lubin, the co-creator of Ethereum and the founder of ConsenSys, has since acknowledged the near stagnant adoption rates of decentralized apps and decentralized systems by the mainstream. As such, the company is now counting its losses and taking a step forward by focusing on developing products that are can be used by the casual and mainstream users in the ecosystem. As for Bitcoin Cash, it remains to be seen how far its supporters will be willing to go with it.