Ethereum Breaks $700 as Market Rebounds
The cryptocurrency market has started to recover from the last dip brought on by fear and intense panic selling in South Korean Markets as news broke about the raid of the UPbit exchange. Major coins like bitcoin have started to rebound, pushing up over $8,500 again as investors continue to be hesitant about market stability.
Ethereum, on the other hand, has been the slow-moving giant of the past few weeks. Ever since the Altcoin Winter in December and January when Ethereum was more than twice as valuable, the coin has been slowly building back its lost. Now the price per Ether is just about to cross $700 and now sits at $698 at the time of writing.
One of the reasons why Ethereum took such a heavy blow during the major correction at the beginning of the year was due to almost every altcoin taking a dive as people started to pick up on the overinflated prices and FUD. Whenever there is uncertainty in the crypto market a large number of investors have a knee-jerk reaction and immediately sell at the first signs of trouble. This is amplified when there are hundreds of new ICOs and altcoins flooding the market, all vying for the top, while still being based on the same protocol.
Most altcoins are based on the ERC-20 token standard which is the coding language used to build cryptocurrencies and Decentralized Applications (DAPPS) that run on the Ethereum Blockchain. This causes the performance of Ethereum to be tied closely to the successes and failures in the altcoin market. However, it seems that over time Ethereum will become far more robust with the continued development of the network. This will be especially evident once there are a few more legitimate and wildly successful ERC-20 tokens on the market, which will cause the overall value of Ethereum to steadily appreciate.