Time for a scoreboard check on Ether, the cryptocurrency which trades on the Ethereum blockchain.
The Ether rollercoaster is back on an upward path, jumping almost 20% overnight after steep falls earlier in the week.
The rise of Ether, and subsequent increase in volatility has made for quite a run over the last 18 months.
As Wolf Richter explains:
“Ethereum has collapsed 52% in four weeks. The second largest cryptocurrency by market capitalization had surged from $0.95 at the end of 2015 to $8.21 by the end of 2016; a gain of 764% in one year. Then it surged to $400 by June 13, according to CoinMarketCap; a gain of nearly 5,000% in less than six month. Over the 18-month period, it multiplied by 421 times. That’s a 42,000% gain. No wonder hedge funds have piled into this madhouse. But in the four weeks since then, it has collapsed by 52% to $193.”
Last night’s gain has taken Ether back above $US200, after falling below that level for the first time since late-May:
Based on this analysis by Becky Peterson, the future success of Ether is dependent on how prevalent the Ethereum blockchain becomes as part of day-to-day online transaction activity.