The total number of Ethereum transactions has gone through the roof in recent months. Interestingly, the price of Ethereum has followed the same path as the total transactions: both went up approximately fourfold since March of this year.
The total number of daily Ethereum transactions is truly amazing. This is literally “off the chart” and it all started in March of this year.
The fact that there are so many transactions of Ethereum is certainly a good sign. However, there are many reports that this is primarily driven by speculation.
Business Korea reported today that they have proof of speculation:
Some officials from financial authorities said, “The recent rise in cryptocurrency prices has taken on a speculation aspect.” An official said, “It is a clear speculation. In particular, it is difficult to evaluate the value of an initial coin offering (ICO), which issues a new coin, so it can make unreasonable profits.”
While we are not sure that this news is totally accurate, we do agree with the ICO hype. ICOs are certainly overheated, and will probably continue to stay so for a while. At a certain point, it will correct, driving startups with low or no economic value out of the market. Ethereum’s price will probably correct significantly, but at least it will be a healthier market.
We do not believe the moment is now though given the Ethereum based applications are only now starting to be rolled out and developed. The total transactions is expected to continue to rise.