Ethereum (ETH) and Ripple (XRP) price slumped to a four-month low today, amid a broader selloff in cryptocurrency markets. The total market capitalization dropped more than 60% in the past three months after regulators and analyst declared it a speculative and risky investment that could result in complete losses.
Ethereum, the second largest cryptocurrency, trades in the range of $410 at present – the lowest level in the past four months. Ethereum price declined more than 23% in the last seven days, down almost 45% in the previous month alone. The previous low for the largest altcoin was $460 it hit two weeks ago. ETH market capitalization plunged to $40 billion from an all-time high of $132 million.
Besides from market volatility due to regulatory clampdown and advertisement bans, the changing scenario for ETH coin mining has also been impacting trader’s sentiments. The reports show that Bitmain has developed a new Application-specific integrated circuit (ASIC) chip to specifically mine Ethereum.
Christopher Rolland said, “During our travels through Asia last week, we confirmed that Bitmain has already developed an ASIC [application-specific integrated circuit] for mining Ethereum, and is readying the supply chain for shipments in 2Q18”.
Market participants believe that mining through ASIC chips could centralize Ethreum, relative to mining through GPU’s.
Mikhail Avady, founder of TryMining.com said, Ethereum is among the most profitable coins available for GPU mining. He said, “It’s going to affect a lot of the market. Without understanding the hash power of these Bitmain machines, we can’t tell if it will make GPUs obsolete or not”.
Ripple Plummets at Similar Pace
Ripple Price plunged more than 19% in the last seven days, extending the one month decline to more than 40%. XRP price stands around $0.54 at present with the market cap of $21 billion, the lowest level in the last four months. The third largest cryptocurrency has been fumbling on the broader selloff in crypto markets albeit XRP’s blockchain penetration in payment services industry. RippleNet is in agreement with more than 100 companies and banks to enhance their domestic and cross-border payments.
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Sharon is a journalist based in Durban, South Africa. He has years of experience in writing for a number of print and digital platforms, ranging from sport to technology and of course, Cryptocurrencies.