The native currency of Ethereum, Ether has fought to come back past $300 in spite of the success of the hard fork of Byzantium.
Before the nationwide ban on ICOs (initial coin offerings) by China in September, Ether’s price was close to the $400 mark due to the rapid rise of optimism directed at the network by China, South Korea and Japan.
Ether is not the only coin that has taken a hit; since then with the prices of Bitcoin, Bitcoin Cash, Litecoin and Ripple have all declined and Bitcoins dropped to $5,860 from $6,199 and this is mainly due to the fact that the digital currency market is taking many and big corrections.
Similar to its behavior on previous surges of price, the success of the Byzantium hard fork was anticipated to impact the price of Ether for the better in the short and midterm. Ethereum’s co-founder Vitalik Buter underlined that the network of Ethereum had remained stable since the success of the hard fork earlier in the month.
It was also expected by analysts that Ether’s price would go up taking into consideration the positive gains of EEA (Enterprise Ethereum Alliance). Applications are being developed around the Ethereum network and finance industry leaders such as the Russian state owned bank Sberbank have joined hands with Enterprise Ethereum Alliance to do so.
Igor Bulantsev, the senior vice president of Sberbank, said that their addition to the alliance would aid in the cooperation of global leading companies with regard to the development of the platform of Ethereum. He added that the EEA was continuously growing and his hope was that the expertise that bank brought will be utilized by its members and that the bank will have the ability to have a say in the buffing up of the platform and its use in corporate sectors.
According to researchers, of those including, JP Vergne a professor of Ivey Business School, many studies have discovered that the activity of developers has proven to be the strongest indicator in predicting the trend for the prices of digital currencies. In 2017 alone, the community of Ethereum developers has been working with the hard fork of Byzantium and solutions such as Plasma which are anticipated to make a better accommodating eco system for applications that are decentralized.
Vergne added that the best way to predict the exchange rate of a digital currency is checking the amount of activity circulating it in terms of the activity of developers.
For the entire year so far, South Korea’s Ethereum market had been the biggest but that changed last week as Ethereum’s US market gained the lead of 33% market share – making it the leading exchange market. South Korea held the top position mainly due to the fact that demand from communities of finance and digital currency in the country was big.
The drop in interest for Ethereum in South Korea was because of the new digital currencies, like Zcash and Qtum. This inspired traders and investors to look for a more diverse and widespread asset portfolio separated from the main currencies of Bitcoin and Ether.
In terms of the near future, the hard fork of Byzantium’s success, Ethereum networks quick adoption will enable Ether to come back and regain its value.