A Brief History of Ethereum Prices: The Ups and Downs of the Apocalypse
Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.
Blue Fox Notes (ID: lanhubiji)
Blue Fox Notes (ID: lanhubiji)
, reprinted by Odaily with authorization.
Ethereum is different from pure digital currency, it introduces smart contracts to the blockchain. It opens up new types of blockchain projects. So, as the second largest project in the crypto world, how does its price change? Why do prices change? Although the specific reasons for each price change are different, its history can still bring us some enlightenment.
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Ethereum launched its first version, known as Frontier, on July 30, 2015. A week later, Ethereum was listed on the exchange. According to the records of Coinmarketcap, on August 8, 2015, the price of Ethereum after listing on the exchange (Kraken) was $2.77, and the trading volume on that day reached $205,324.
As far as 2015 is concerned, this start can be said to be very bright. Compared with its crowdfunding price from July to September 2014, it is a good start. At that time, the crowdfunding price of 1ETH was about 0.3 to 0.45 US dollars, that is, the increase of more than 6 times after its listing.
But the good times did not last long, and the price dropped sharply after 4 days, and by August 11, its price fell to around $0.67. The reason for the decline may be the selling of early investors, which is very similar to the trajectory of many tokens when they were first listed on the exchange.
However, by August 14, the price rebounded to $1.98, more than three times that of three days ago, and the transaction volume also reached more than $4.7 million. But this is only a temporary rebound. Subsequently, the price of Ethereum fell all the way until October 22, 2015, when the price of Ethereum fell to a historical low of $0.42. However, from the perspective of early crowdfunding participants, Ethereum has basically never fallen below the crowdfunding price in history. The down period lasted about two and a half months.
The $1 Era of Steady Foothold
After falling to the lowest point in history on October 22, 2015, after more than a week of adjustments, Ethereum gradually returned to the era of fluctuating around $1 until January 2016.
During this period, Ethereum held the Devcon-1 developer conference, that is, from November 9th to 13th, 2015. This conference attracted more attention to Ethereum. This kind of activity is conducive to increasing people's expectations for the future value of Ethereum, thus stabilizing its price at around $1 without continuing to fall.
After experiencing early surges and falls, and after two and a half months of adjustments, the market has gradually reached a certain consensus on the final price of ETH, which basically fluctuates around $1. Coincidentally, this period also lasted about two and a half months.
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Leap to the $10 Era
This is the first real jump in the history of Ethereum price. From early January to mid-March 2016, the price of Ethereum jumped from around $1 to over $10. This process also took about 2 months or so.
The main event of this period was the anticipation of the release of a more stable version of Ethereum (Homestead), which peaked at $15 on March 14. The total market capitalization of Ethereum exceeds $1.1 billion, entering the unicorn level.
However, after the release of the Homestead hard fork on March 14, the good news was digested, and the price of Ethereum began to fall, falling to the bottom of $7.39 on April 30. However, in the following period of time, it fluctuated around around $10. This period is simply referred to as the “$10 Era” in the history of Ethereum prices. The $10 era is the longest period in the history of Ethereum prices, from March 2016 to mid-February 2017, which lasted about 11 months.
Judging from the above events, the release of the Homestead version is a key event for Ethereum to jump from the $1 era to the $10 era.
In addition, there was a big ups and downs during 2016. This is all related to The DAO incident. The DAO kicks off crowdfunding on Ethereum. Given that The DAO project raised 12 million ETH, it was worth $150 million at the time. This fueled optimism about the future of Ethereum, during which the price rose to an all-time high of $18.43 on June 16, 2016.
ETH in the $10 era has two major events, one is the release of Homestead, and the other is The DAO project event. Homestead raised Ethereum from $1 to $10, making the total market value of Ethereum exceed $1 billion. The DAO project originally raised people's expectations for the future of Ethereum, but the hacking incident greatly blocked the upward momentum of Ethereum.
Around the hacking incident of The DAO project, the Ethereum community split into two factions. One faction advocated the rollback of funds through hard forks, while the other faction opposed this action because it violated the immutable spirit of the blockchain. Finally, Ethereum implemented a hard fork, resulting in two chains, ETH and ETC. Such community battles have also led to a drop in the price of Ethereum. Even so, Ethereum still maintains an era of fluctuations around $10, and basically stabilized its foothold at this stage.
During this period, there were also DDos attacks on Ethereum. These negative news caused its price to be in a low state in December 2016, but it still did not fall below $7.
Since the release of the Homestead version in 2016, even though it has encountered many negative events, Ethereum still has not returned to the era of $1, which shows that people have basically reached a relatively stable consensus on the market price of Ethereum.
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Breaking through the $100 era
From mid-February to mid-June 2017, in just 4 months, Ethereum rose from about $10 to $400.42 on June 14, with a maximum increase of 40 times, which is also the historical increase in the price of Ethereum. the highest stage. It directly raised the price of Ethereum from the era of 10 dollars to the era of hundreds of dollars.
So, what happened at this stage?
There are a few things worth noting:
On February 23, 2017, Ethereum was added to eToro (social platform for traders)
At the beginning of May 2017, Bitcoin once again experienced transaction congestion, which once again reminded people of the possible value expectations of Ethereum.
At the same time, ETH has gradually become the token of choice for crowdfunding of encrypted projects. With the crowdfunding of hundreds of blockchain projects in 2017, the demand for ETH has substantially increased.
The above things (among other factors not mentioned) led to the gradual formation of a consensus value of hundreds of dollars in the price of Ethereum.
During this period, Ethereum also experienced several declines. For example, since mid-June 2017, there have been some declines, falling to around $154 in mid-July. But then it stabilized and has been fluctuating between 200-400 US dollars. The adjustment during this period is mainly a correction of the previous increase that was too high and too fast. However, even when regulation came in September 2017, its price only dropped to around $250. Subsequently, the price of Ethereum fluctuated around $300 until mid-November 2017. This period lasted about 2 months.
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The $1,000 Era: A Short Good Time
From mid-November 2017 to mid-January 2018, in about two months, Ethereum rose from around $300 to a maximum of more than $1,400. On January 14, 2018, Ethereum reached its all-time high price of $1427.48, and the daily trading volume on that day exceeded $5.6 billion.
A few key takeaways from the frenzied bull run that propelled Ethereum from over $300 to over $1,400:
In mid-October 2017, the Ethereum Byzantine network was activated, which provided the technical fundamentals for a new round of upward development.
Projects using ETH as crowdfunding tokens continue to increase, and thousands of crowdfunding projects have appeared. Some crowdfunding projects have skyrocketed after being listed on the exchange, which has led to crowdfunding projects being highly sought after in the market. Participation related. The atmosphere of the market presents a state of fanaticism and irrationality.
Bitcoin continued to rise, which directly drove the popularity of the entire encryption market. Countless inexperienced new users flocked in, resulting in an irrational surge in the entire encryption market, including Ethereum, which greatly exceeded the fundamentals of value.
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From the $1,000 era to the $100 era
Since mid-January 2018, Ethereum has gone downhill. Although there was a rebound during the period, Ethereum used to hold out between 600-800 US dollars for a month or two, but in the end it failed to hold on, and thus started a downward model, and finally fell to 84.55 on December 15, 2018 Dollar. This price corresponds to the level in mid-May 2017. However, the price of Ethereum then stabilized and hovered between $100-300, and did not continue to decline.
After more than a year of dream bubbles, Ethereum has finally returned to the $100 era. There are several key points during this period:
The irrational prosperity of the market caused the early entrants to start cashing out, triggering a chain reaction in the market, and Ethereum was not immune.
To make matters worse, projects that raised a large amount of ETH tokens during the crowdsale in 2017 sold ETH frantically, further exacerbating the decline of ETH.
epilogue
Ethereum's 2018 Constantinople hard fork upgrade was postponed and Bitcoin continued to fall. The market sentiment was pessimistic, and Ethereum fell below $100 ($84.55).
The development of DeFi in 2018 and 2019, the upgrade of Constantinople in February 2019 and the upgrade of Istanbul in December, and the expectation of ETH2.0 have stabilized the situation for ETH prices.
After Ethereum fell below $100 in mid-December 2018, the price of Ethereum in 2019 was basically stable between $100-300 until today.
epilogue
It has been more than 4 years since Ethereum was listed on the exchange in August 2015. In just a few years, the price of Ethereum has experienced a roller coaster of development.
After a year of adjustment and digestion in 2019, the price of Ethereum has basically stabilized between $100-300. This is also the result of more than a year of repeated corrections in the market.
With the improvement of Ethereum's fundamentals and changes in market sentiment, Ethereum's 2020 will not be a smooth year after all.
