Ethereum co-founder Vitalik Buterin believes there will be no repeat of the thousand-fold growth previously experienced by the crypto market. In an interview for Bloomberg, he said the average person is now aware of the existence of blockchain, and the crypto space will not climb again to its 2017 heights.
“The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” Buterin told Bloomberg on the sidelines of the Hong Kong-hosted Ethereum Industry Summit.
The creator of Ethereum believes marketing was the main reason behind the growth in Bitcoin and other cryptocurrencies for the first seven years of their existence, and he emphasized the focus should now lie on adoption, not promotion.
“That strategy is getting close to hitting a dead end. The next step will be getting people who are already interested in cryptocurrencies to be involved in a more in-depth way. Go from just people being interested to real applications of real economic activity,” he said.
Ethereum (ETH) prices fell below $200, down from $290 on Wednesday and a January 2018 high of $1,300. ETH is used for transactions on decentralized applications (dApps) that run on the Ethereum network. The downward price trend accelerated in August as numerous initial coin offerings cashed out among concerns of a market crash. According to Bloomberg strategist Mike McGlone, the price may fall further to $155 due to increasing competition, market volatility, and a maturing industry. Even then, ETH will be 2,000% above its prices from late 2016.
Last week, Jeremy Rubin caused a stir within the Ethereum community by suggesting that ETH prices can hit a hard bottom of $0. “If all the applications and their transactions can run without ETH, there’s no reason for ETH to be valuable,” the Bitcoin Core developer said. This prompted Buterin to reply with a lengthy comment on Reddit, stating that while theoretically possible, the scenario was unlikely to happen.