Ethereum’s Decline and Supported Tokens’ Fate
The uncertainty surrounding the fate of blockchain projects whose systems and tokens are built on the Ethereum platform continues to be topical. Despite new partnerships, developer and mining payouts, there are concerns that Ethereum is weaker today than it was about a year ago when it started supporting more smaller projects. However, the story does not have to end there.
It seems little value has been added to the network since last year which has been affecting stakeholder confidence. The price of ether (ETH), as the world’s second-largest cryptocurrency by market capitalization, continues to see sell-offs in a broader market downturn while a known Ethereum dApp, Bancor, announced it is expanding to the EOS blockchain. Bancor claims its launch on EOS as a cross-chain liquidity protocol is predated on the network’s faster transaction speeds than Ethereum’s and the lack of fees as against Ethereum’s costly “gas” fees.
Plotting their fate
However, the blend of this shaky Ethereum alignment with the narrative that most altcoin projects would die in this bear market price action may not turn out to be completely true unless such projects run out of funds.
It is established that a blockchain project’s deliverables are based on its promises and actions. Hence, promising more than is achievable or not factoring unseen circumstances in a changing and volatile environment – including shifting regulatory concerns – into the planning process could be disastrous.
How long the bear market would last is indeterminate at this point. Projects need to add more effort to improve their competent level. Not everyone in the crypto space believes that a project whose asset’s value drops by more than 90% is done. Hence, focusing on achieving realistic goals within a reasonable timeframe is crucial.
Also, with the growing complexity of the crypto industry due to a developing trend that aims at scrutinizing for improvement, setting up a team that can deliver based on industry knowledge and skills of interest to small businesses will be useful. A well-coordinated community matters too. As the backbone of any project, a lot could be accomplished with a strong and positive community.