Ethereum experienced a big fall. Many think that will be the doomsday, including Nouriel Roubini “Dr. Doom”, said the value of Ethereum fell unexpectedly. Because, as a cryptocurrency and decentralized application platform, it has insufficient active decentralized applications (dApps).
Nouriel Roubini believe the downtrend of Ethereum price (chart indicates the price falls 300% since July) isn’t much mythic because 75% dApps are CryptoKitties-like dApps, scams and gambling. The rest of 25% are useless decentralized exchanges. Meanwhile, 99% transactions were completed on decentralized exchanges, whereas 99% cryptocurrencies have lost 99% values.
However, it’s a “evolution” that Ethereum has to experience.
Cryptocurrency as a new form of assets and Ethereum protocol as a decentralized network, are still in their infancy. (The major Ethereum network can only handle 10 to 12 transactions per second, so the services and accesses that dApps offered are limited.)
Vitalik Buterin, the co-founder of Ethereum, has said that Sharding and Plasma in layer-two solutions may increase the trading capacity to one million times a second. This will be able to support the Internet of Things(IoT) and financial networks. The improvements to the protocol are being at exponential growth.
At present, some simple dApps, such as CryptoKitties, dominates the industry, and the decentralized exchanges cannot compete with the centralized exchanges. However, decentralized ecosystems and smart contracts based on public blockchain (many of major cryptocurrencies are public blockchain, such as Cardano and EOS as the profile described) have been established for less than three years. Nevertheless, the dApp Brave Browser (award publishers BAT tokens based on traffics) already own more than 3 million users. Improvements to Ethereum's basic protocol have made ETH run as a value storage, just like bitcoin value (Bitcoin has a lot forks what also determine the value of Bitcoin, especially Bitcoin cash).
The Roubini's prediction was made relying on an assumption that the development of dApps will cease due to low user adoption rate. However, a survey shows that half of the US Millennials are interested in using cryptocurrencies, whereas the Millennials' trust on ordinary financial systems is noticeably declining. Moreover, the Line and Kakao talk have founded their own cryptocurrency exchanges to commercialize blockchain and dApps.
All data used for cryptocurrency market & feature analysis obtained from Citicoins.com
