Can Ethereum (ETH) Bounce Back Up with Plasma Scaling?
Ethereum, although still ranked as the second-best crypto with the market capitalization of over 28 billion dollars, it seems that ETH is still hovering around its nine-month low, still being traded under the value of 300$ per one unit.
While analysts are claiming that one of the main factors for having ETH reaching a nine-month low beside from the case of the bear market, is the fact that many developers are leaving the platform in search of a far scalable solution for creating and deploying decentralized applications.
What might be the confirmation that Ethereum is longing for scalability improvements is the case where Vitalik Buterin, the founder of ETH, suggested plasma scaling.
Can Plasma Scaling on Ethereum Affect ETH Price?
Vitalik Buterin and Joseph Poon, co-creator of Bitcoin Lighting network have come up with a scaling solution that should represent one of the planned integral changes in the Ethereum network that should create a more scalable environment regarding the development and deploy of decentralized applications.
The main idea is to create an additional layer for Ethereum smart contracts, which would be able to communicate with the main chain, that way creating a more scalable environment for developers.
Buterin added that the first version of plasma scaling demands users to download and validate each contract within plasma history, however, the first man of Ethereum added that there is a solution for this issue as well through the utilization of plasma tokens.
While it is more than evident that ETH isn‘t the only crypto suffering from the stubborn bearish trends, Vitalik Buterin also warned the crypto community that the majority of cryptocurrencies hold the potential of touching the zero value in the following months.
Mentioning that the market is still very young, probably alarmed by the price of ETH at the current moment, Buterin warned the public about thinking twice before “placing their savings into cryptocurrency”.
Many would disagree as the market is still “alive and well”, however, the market has been acting bearish for quite some time, allowing ETH to touch its bottom for the year of 2018.
Plasma Scaling could pull out ETH out of the dip in case it would manage to attract more users to the network which could become a reality as a consequence of attracting more Dapp developers to the network.
Ethereum (ETH) Performance
Ethereum is currently slightly above its nine-month low by being traded at the price of 277$, while for the first time in a while we can see it at 0% in the course of 24 hours on August 24th.
Ethereum lost around horrific -41% of its value during the period of the last 3 days, also losing -23% in the course of the last two weeks. Things started to look better for ETH during the last week, so it went trading in the red by “only” -2.3% in the last 7 days.
Year to date state is not looking particularly flattering for ETH either, as it lost -13% of its total value while some of the top 30 coins are showing over 1000% of gains in a single year.
However, ETH still holds its ground as the 2nd-best currency, so bringing integral changes might probably change things for better in the case of Ethereum’s price in the market.
Of course, it also needs to be taken into consideration that the crypto market is still dictating bearish trends.