Ethereum Co-Founder Explains Crypto Price Volatility Won’t Impact Growth and Adoption
Joseph Lubin, the Ethereum co-founder and the current CEO of ConsenSys Inc. has said that price declines in the crypto market will not hinder further growth within the industry.
Joseph Lubin, the Ethereum co-founder and the current CEO of ConsenSys has said that price declines in the crypto market will not hinder further growth within the industry.
Lubin gave this assertion in an interview on Bloomberg TV on Wednesday, August 14. In the same interview, he said that speculators were responsible for the price swings witnessed in the market.
He also agreed that the price boom witnessed in 2017 was more of a bubble, with six or so such bubbles occurring since Bitcoin’s inception in 2009.
According to him, “each [bubble] more epic than the previous one, and each bubble is astonishing when they’re happening but when you look back they look like pimples on a chart”
However, he also pointed out that the crypto ecosystem was getting stronger even as digital asset prices tumble. The crypto landscape has seen an increase in developer activity and price declines will not affect developments in the industry, including adoption.
His opinion was based on the fact that every bubble, much like the latest one to hit crypto, has always led to tremendous increase in activities in the cryptocurrency landscape.
He stated the industry builds “more fundamental infrastructure” before it witnesses a correction. The result is that there is potential for more growth within the space.
“I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem.”
He also explained that the whole ecosystem is “probably two orders of magnitude bigger as a developer community” compared to what it was like eight or ten months ago.
On the issue of price volatility, Lubin maintains that it is nothing unexpected. In his opinion, the industry can make its growth plans and future projections by looking at the price movements.
Even in extreme cases, he believes everything will still be on track.
Ethereum (ETH) has seen its value decline steadily, hitting a low of $256 in the last 24 hours. According to BloomWater Capital, the recent Ethereum price decline is to be attributed to ICOs.
This drop represents the lowest price for the coin in the last nine months. The last time Ethereum’s price hit levels below $300 was in November 2017.
ETH/USD is currently trading at $286 and is looking to sustain momentum above this support area. However, the pair is still trading in the red over the week, losing over 17 percent.
In comparison, Bitcoin has remained flat over the last 24 hours and gained nearly 3 percent in the last one week. BTC/USD is currently trading at $6,364 and could see its price reach levels above $6.5k.
Ethereum, the second largest coin by market capitalization, is seeing a daily trading volume of $1.7 billion. Its market cap currently sits at $29 billion at the time of writing.