Having gained over 11,000% last year and making a new all time high, Ethereum (ETH) dropped sharply this week. The market cap currently stands at US$97.1 billion, with US$7.1 billion traded over the past 24 hours.
The number of transactions per day on the networks continues to rise, with Initial Coin Offerings (ICOs) and Decentralized Applications (dapps) continuing to bloom. Over US$1.35 billion was raised by ICOs last year, accounting for ~83% of all ICO funding ever raised.
While ETH continues to hold a relatively low Network Value to Transaction ratio, suggesting the coin is undervalued, it seems doubtful the current pace can be sustained.
In an effort to create more responsible ICOs, Ethereum founder Vitalik Buterin discussed a new ICO fundraising model which borrows properties from the DAO and is dubbed a Decentralized Autonomous Initial Coin Offering (DAICO).
This new model allows users to determine how much the team receives over time, by voting on the “tap.” The team is therefore rewarded for their performance, and not immediately given access to millions of dollars before a project is worked on or completed.
https://bravenewcoin.com/news/ethereum-price-analysis-buterin-reinvents-the-ico/