Ethereum, the world's second-biggest cryptocurrency, is in meltdown

Ethereum has lost more than 20% in the last 24 hours.
  • Ethereum has lost 20% over the last day and is now trading at its lowest level since August 2017.
  • The world’s second-biggest cryptocurrency has lost more than 80% of its value since peaking in December 2017.

Prices for Ethereum have fallen to their lowest level in a year.

The world’s second-biggest cryptocurrency has been caught in the latest crypto selloff, which saw Bitcoin lose around $US1,000 over the last 24 hours.

Ethereum has lost around 20% in that time and a short time ago was trading beneath $US230, the lowest level since August 2017.

Moves in Ether tokens can have a significant bearing on crypto markets, given the Ethereum blockchain is the platform of choice for the majority of new initial coin offerings.

Another company in the crypto space which provides a blockchain platform is Hong Kong-based Block.one.

Block.one’s EOSIO platform has been considered as a possible competitor to Ethereum, with the potential for improved scaling capability.

Block.one, which poached CBA’s finance chief Rob Jesudason in May, raised $US4 billion in an ICO earlier this year via the issuance of EOS tokens. According to the Wall Street Journal, the proceeds of the ICO were received in Ether.

The EOS token is now the fifth-biggest cryptocurrency in the world, but it too has posted sharp declines over the last three months.

Since the start of June, EOS tokens have lost around two-thirds of their value, falling from above $US14 to around $US5.

Ether tokens have seen similar declines, falling from around $US615 on June 6 to $US227 today — a decline of around 63%. Over the same time frame, Bitcoin has lost around 17%.

The establishment of the Ethereum blockchain also gave rise to a proliferation of new alt-coins, which is part of what inspired 2017’s crypto-craze.

Even the Commonwealth Bank’s blockchain bond, which raised $110 million for the World Bank’s reconstruction and development division, was implemented using the Ethereum blockchain.

The craze reached its zenith in December last year when Ethereum topped out at $US1,357. Since then, the currency has lost more than 80% of its value.

In line with Ethereum’s latest fall, hundreds of alt-coins on the website coinmarketcap.com have posted declines of around 20% over the last 24 hours.

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