Joseph Lubin, co-founder of Ethereum, said in an interview with CNBC that his company is much more concerned with the technology behind the network than its coin price movement. When asked about whether the price drop since December 2017 was caused by diminishing trust in the cryptocurrency, he pointed out that it was natural to see price corrections due to investor sentiment.
“Our company consensus, and all the people in the Ethereum ecosystem, our software developers, [are focused] on building infrastructure. We let the price take care of itself. The price started at 20-25 cents a few years ago, and it surged quite dramatically. It makes a lot of sense that general fear-greed dynamics tend to cause overshoots and corrections, so we’re in great shape,” Lubin said.
Since its peak in 2017 when it traded at almost $1,400, Ether now changes hands at around $450.
A fall in an asset’s price doesn’t always necessarily represent a lack of trust, as Lubin pointed out. Selling pressure in the crypto market may set in sometimes from a small dip that could send prices into a downward spiral.
Right now, according to Lubin, the biggest concern for the development of Ethereum is not its price, but its scalability.
“We’re moving into an era of scalability for the Ethereum network. We have our trust layer—layer 1—and we’re adding layer 2 infrastructure in the form of state channels, sidechains, mechanisms like Plasma that enable our sidechains to have high transaction throughput—tens or even hundreds of thousands of transactions per second—that are secured by the layer 1 infrastructure that’s in place already. So, if price is high or if price shoots up and down, that’s actually great for us because it draws attention to our ecosystem [...] and all that interest drives our fundamental value,” he added.
Ethereum’s network currently has issues that may drive investors away over time, sometimes suffering congestion that frustrates people attempting to execute transactions. If the development team doesn’t concentrate on this, other coins would be more than happy to take Ether’s place.
The fact that the Ethereum developers are working diligently on new mechanisms that help scale the network may provide hope that the coin itself will remain a top contender for future years.