Among the major cryptocurrencies, Ethereum witnessed one of the biggest pullbacks this year, with prices dropping by more than 87%, from an all time high of $1377 to $170 at the last count. Unsurprisingly, a lot of self-anointed crypto experts and media houses have been pronouncing Ethereum dead. One key reason for the current slump has been the broad selloff of ETH by a number of ICO projects. Another reason has been near-term scalability challenges that are not necessarily unique to the Ethereum blockchain.
The challenges ahead for Ethereum will weigh down on its price in the near term and if Ethereum fails to implement sustainable scaling solutions, the whole situation is going to aggravate further. However, investors would be wise to not throw in the towel on Ethereum just yet, especially given that it remains the leading smart contract platform and is supported by top-notch developer talent.
We have seen similar situations with Bitcoin multiple times in the past. According to 99bitcoins.com
, Bitcoin has been declared dead 309 times since 2010, yet continues to bounce back.