“Why the fuck isn’t Ethereum picking up in value?” must be a commonly asked question of any ETH investor, holder, or enthusiast who hasn’t yet sold their Ethereum units.
Even though Ethereum jumped from 199$ to 218$ in the period of less than a week, ETH is still not settled at a matching level of its true value in accordance with the general opinion.
The most probable case of having Ethereum declining at a highly de-motivating pace is the fact that the network is losing Dapp developers due to scalability issues.
Ethereum is Losing on Its Value Most Possibly Due to Scalability Issues
Even if you decide to start following up on cryptocurrencies only now in 2018, and even if you are to enter the cryptoverse without any previous excessive knowledge on blockchain technology, one of the first terms you would hear would probably be “scalability issues.”
Many blockchain platforms are struggling with finding viable solutions for building a highly scalable network, however, Ethereum seems to be affected the most by this problem.
One of the greatest problems in the blockchain industry is finding a way of creating a sustainable and scalable network that could support the increasing number of users and visitors.
Since Ethereum network allows smart contract operations, being the top network for building decentralized applications, with the growing number of Dapp developers and Dapp users, the efficiency of the network is declining.
And with it, the price is declining as a consequence.
Unable to support new projects while scaling the network to provide the increased efficiency, it appears that ETH holders started selling their Ether units, which reflected on the market cap of Ethereum.
Ethereum (ETH) Price Today – BTC / USD
If you add the fact that Ethereum is not even among the fastest cryptocurrencies, regardless of the fact that ETH is ranked as the second-largest cryptocurrency, it is no wonder that crypto enthusiasts are looking for Ethereum alternatives.
As these alternatives could bring them to faster processing time, lower transactions, and a more functional ecosystem, ETH units are being sold towards dipping the value of the misfortunate crypto.
Vitalik Buterin and Ethereum dev team to Implement Scalability Solution
Even though Ethereum is going through a major rebound in the last seven days, its price still doesn’t seem to match the reputation of Ethereum as we know it.
However, this all may change with the implementation of scalability solution as presented by the founder and CEO of Ethereum, Vitalik Buterin.
At the present moment, Ethereum can process around 15 transactions per second, while for instance Stellar (XLM) and Ripple (XRP) have no problems with validating from 2,500 to 3,500 transactions within the same timeframe.
To solve the problem of the slow processing time, Ethereum team will be implementing an off-chain type of processing transactions, similar to the Lightning network, while they are said to be working on implementing Sharding for achieving a scalable network.
With Sharding, originally presented by Zilliqa (ZIL), Ethereum should be divided into smaller portions of the network, known as “shards,” which should create a more efficient, scalable network.
Once the team presents the final implementation for solving these issues, Ethereum might pick up in value and surpass its current struggles.