Ethereum Price Resumes Slide Following Augur Launch
Market pressures have put a firm cap on Ethereum this week, with prices struggling to make headway following the launch of a highly anticipated prediction platform that was years in the making.
Ethereum Price Levels
Ethereum was down 3% on Thursday to $430, the lowest since June 29, according to data provider CoinMarketCap. The second-largest cryptocurrency by market cap faces resistance north of $440, based on recent price action.
At present values, Ethereum has a total market capitalization of $43.4 billion. The coin’s total trade volumes amounted to $1.4 billion, which is fairly consistent week-over-week.
Ether’s losses Thursday mirrored a broader market pullback for bitcoin and the major altcoins. At the time of writing, the total cryptocurrency market was down $10 billion, or 4%, to $245 billion.
The ether price has been in a downtrend since Sunday following yet another failed rally attempt for the broader market. On Sunday, ETH/USD reached $500 for the first time in over two weeks. Over the next four days, values would decline 14%.
Ethereum Enters ‘Phase 2’ Development Following Augur Launch
The brains behind Ethereum believe the blockchain is entering into ‘phase 2’ of its development following the successful launch of Augur, the most complicated decentralized application on the network.
Ethereum co-founder Joseph Lubin told an audience of 15,000 strong at the RISE conference in Hong Kong that the world’s second-largest blockchain by market cap will soon fix its scalability issues.
“[Ethereum is moving] into a space where it can serve as the layer one trust system, and built into Ethereum we’ll have hundreds of thousands of transactions in the layer two systems,” Lubin said in a panel discussion, as quoted by CCN.
In the discussion, Lubin emphasized how layer two networks will process large amounts of data thanks to the efficiency and security provided by solutions like Sharding and Plasma, which operate as layer one protocols. Essentially, the integration of layer one and layer two systems will create an ecosystem where decentralized applications can be deployed without running into scalability issues.
Augur, Ethereum’s most complicated dApp, launched its decentralized prediction marketplace earlier this week to great fanfare. Shortly after launch, Augur became the largest dApp on the Ethereum network, quickly surpassing CryptoKitties in volume.
The Augur protocol took several years to develop and is widely regarded as having the longest project life cycle of any decentralized application.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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