Analysts from mainstream media networks including CNBC have attributed the recent fall of the Ethereum market cap to various factors, including uncertainty surrounding Bitcoin’s scalability and the entire cryptocurrency market.
Still, some factors have become quite evident in the past few months, amidst the rapid growth of the initial coin offering (ICO) market.
Successful ICOs including Status, Bancor, EOS and Tezos have raised hundreds of millions of dollars, but since the completion of their ICO campaigns, none of the large-scale ICOs and Blockchain projects are yet to present viable products and tested software.
EOS for instance, the ICO that raised $180 mln, is set to complete minimal viable testing environment by the end of this summer. Only by fall of this year, the EOS development team will launch its minimal viable test network that can run independent codebases of developers.
The stable 1.0 product of EOS will be released in fall of 2018, over a year now. The launch of EOS 1.0 will not immediately lead to the establishment of an active user base. It will take time for EOS to establish its own user base and active development community.
ICOs cashing out hundreds of millions of dollars worth of Ether, the native token of the Ethereum network, has been a major factor in the decline of Ethereum. But, the lack of viable products from the highly anticipated ICO market has also been a driving factor.
