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Ethereum Price Suffers Greatest 1 Day Loss in a Year

Nick
Author Nick

Ethereum Price: $172.87
Ethereum Price (BTC): 0.021471BTC
Market Cap: $18.61B
ETH Network Dominance*: 72.76%
7 Day Candle**: $209.71 / $211.00 / $152.11 / $172.87

Fear and concern once again swept the cryptocurrency markets last week when the price of ETH/USD inexplicably plummeted from $189.33 to $165.12 (12.7%) within a one hour period, closing the day with the steepest 24 hour decline since early 2018. The price fall wasn’t limited to Ethereum – nearly every market was significantly in the red, with Bitcoin suffering in equal measure. Indeed, it may well have been Bitcoin which sparked the sell-off; the blockchain’s hashrate (a measure of – among other things – the security of Bitcoin’s network) dropped by 30% on September 23rd.

Such a rapid decrease in Bitcoin’s hashrate is unusual, sparking speculation online and likely leading to concerns among traders. Explanations for the drop include:

  • Catastrophic failure – a large mining corporation could have suffered a prolonged power or hardware failure.
  • Censorship – possible shutdown/seizure of a mining facility.
  • Normal fluctuation – hash rate is calculated based on factors which have statistical variance and such a drop is not out of the realm of possibility.

Speculation on the cause of the plummet was largely made redundant when, on September 26th, Bitcoin’s hashrate broke yet another all-time high. It’s likely that the overriding cause was simply a statistical oddity, possibly made to appear even more odd/implausible by some degree of hardware failure; certainly not the catastrophic “death spiral” decline that some had initially feared.

While Bitcoin’s hash rate has recovered (and then some), the market has only made a partial recovery from its one week low of $154.35. Away from fiat markets however, the price of ETH/BTC has remained strong during the fall-out, closing the month of September with a 21.34% gain.

– Nick, Owner EthereumPrice.org

NBA Player Blocked From Tokenizing Contract

NBA player, Spencer Dinwiddie, who had hopes of tokenizing their three-year contract on the Ethereum blockchain was blocked last week by the NBA. The contract was to be represented on Ethereum as an ERC-20 token, with the price of the token increasing or decreasing with the contract’s value. Unfortunately for Dinwiddie, transferring the right to receive compensation to a third party is prohibited by the NBA – putting an abrupt halt to the initiative. Dinwiddie, despite losing the chance to earn several million from the sale, would no doubt be content with the attention drawn to his new Ethereum-based business, DREAM Fan Shares.

The concept of tokenizing contracts on Ethereum also had a mainstream boost when presidential hopeful, Andrew Yang, Tweeted his support for the idea. Other media outlets, from CoinDesk to The New York Times also reported on the story.

Zuckerberg on Libra Regulation and Delays

Anyone following the progress of Facebook’s Libra cryptocurrency will have seen endless headlines opposing its launch. Earlier this month, the French finance minister said they would aim to block its launch in Europe, compounding weeks of concerns stemming from the US.

Yet in an interview with Nikkei last week, Zuckerberg remained confident in the company’s ability to deploy the project, simply stating that they are “committed to making sure that we work through all of those before moving forward”. When asked directly about the 2020 launch. “Part of the approach and how we’ve changed is that now when we do things that are going to be very sensitive for society, we want to have a period where we can go out and talk about them and consult with people and get feedback and work through the issues before rolling them out … And that’s a very different approach than what we might have taken five years ago.”

A sufficiently decentralized launch of Libra (which looks increasingly likely), would create – by an enormous margin – the world’s largest cryptocurrency on-ramp.

* calculated as: (ETH Market Cap / Ethereum Network Market Cap)
** open / high / low / close