Bringing a much-needed respite to the investors, cryptocurrencies gained $5 billion of market capitalization in the last 24 hours. The total value of the crypto market has now reached $111 billion from a day before valuation of $105 billion. However, this temporary surge failed to wrest the fall among major cryptocurrencies like Bitcoin Cash (BCH) and Ethereum (ETH), both of which registered a 3% fall in their values against the dollar.
ETH and BCH
ETH experienced a fall of 3% in its value from $97 to $93 on December 9, reversing the short-term gain the crypto registered on Saturday. After achieving its peak on daily trade, ETH fell from $100 to $93, thereby, declining more than 6% in its trade valuation.
The similar trend was witnessed on BCH which has lost almost 50% of its value within a fortnight. Since November 6, the price of BCH has declined from $200 to $100 which is exactly half of its initial value.
The reason behind ETH and BCH decline
Ripple – which has recently behind ETH as the second most valuable cryptocurrency – has now widened its lead over ETH. Within a period of the last three weeks, Ripple has increased its market valuation beyond $3 billion which is indeed a commendable achievement. Despite bearing the status of oversold, the ETH and BCH are increasingly facing difficulty to recover from the recent degrade besides struggling to maintain a respectable price range.
On the fundamental level, cryptocurrencies facing serious issues with the adoption and accessibility will have a hard time to recover even amid positive investor sentiments. ETH, for example, successfully created decentralized application infrastructure for the ConsenSys but failed to capitalize on the scaling projects further. Similarly, ERC20 token (based on ETH) which is a dominant force in the category of smart contract fails to replicate its success story among casual and mainstream investors. BCH also failed to live up to the expectations with limited adoption among trading merchants for whom this whole concept came into being. Sensing these failures, the top echelons of the organization have now turned their focus on the development of products which can be easily accessed and utilized by the users across the ecosystem.
Bitcoin to remain strong
Luckily in the case of Bitcoin, large Institutions light Nasdaq, Fidelity, and ICE have vowed to build a strong infrastructure support to facilitate its trading and financial transactions. This translates into a hope that among all digital assets and cryptocurrencies, Bitcoin will continue to lead the market owing to its institutional support aiding large adoption and high transactional volumes.