Joseph Lubin, co-founder of Ethereum said in an interview with Bloomberg that the steep rise in digital currencies value in 2017 was a result of an industry-wide bubble which has finally been popped up, evident by the recent dip in crypto markets throughout the world. However, he also believes that the crypto ecosystem is efficient enough to tackle the temporary bearish market sentiment.
Lubin stated that the crypto industry has witnessed around six such bubbles since its inception, each one-upping the previous one regarding impact. He added, “With each of these bubbles we have a tremendous surge of activity, and that’s what we see right now.”
Speculative Traders Driving the Slump
In the interview, Lubin shared his thoughts about the current bearish crypto market. He believes that the volatile price fluctuations in the industry are being carried out by “trader types” or investors who have entered the industry to make some quick money.
However, the CEO of ConsenSys Inc. seemed to be unfazed about the whole ordeal. He said that the participation of developers in the crypto community has risen by “two orders of magnitude” since the digital currency prices established a record high last year, and doubts that the market slump will have any negative impact on the development of crypto infrastructure and its adoption in the mainstream.
Lubin also discussed the work ConsenSys Inc. is dedicated to. The firm has a headcount of more than 1100 employees, who are working incessantly to foster the development of Ethereum ecosystem at large. The firm is also involved in crypto consulting, providing solutions to large conglomerates, government bodies, and central banks.
A Downward Spiral: Will Ether Recover?
Ether, the fuel that powers the ethereum platform touched figures as high as $1250 in February this year. This was partly due to the enormous ICOs being subscribed at the time, as tech startups based their projects on ethereum blockchain. The potential of dApps and smart contracts added fuel to the optimistic outlook towards ethereum. However, the cryptocurrency has experienced a steady downward trend since then, as the cryptocurrency is now trading at prices as low as $250.
The following chart gives a clear picture of ether’s volatile behavior throughout the year:
However, Lubin is undeterred in his belief that ethereum will be a force to reckon in the future. The digital currency has massive potential in a plethora of industries around the world, including banking, retail, health, voting and supply chain management.
When asked about the current market state, Lubin quoted, “This is what it feels like to be living in exponential times.”