The latest price drop in cryptocurrency prices is not a constraint to growth in the market claims Joseph Lubin, Co-founder of Ethereum. Lubin is of the opinion that the collapse in bitcoin prices has always been present in the “blockchain ecosystem since 2009 when Bitcoin was invented and is not a new development”. The recent slump in prices won’t slow down adoption or development of core infrastructure for the ecosystem insists Lubin.
Strong correlation between prices
Lubin further added in a recent interview that in spite of the slump in prices, under scrutiny, the price bubbles will seem like “little pimples on a chart”. The reason being growth has been exponential as well. There is a strong correlation in the ecosystem between the rise in price and the growth of fundamental infrastructure.
According to Lubin, bubbles have positives as well as negatives and are part of the ecosystem. The bubble has created attention for the industry which has pulled developers, entrepreneurs and investors. It also brings in a prospect of “building fundamental infrastructure” and creating more value.
Reason for Price drop
The constant volatility in crypto prices, however, was attributed to “trader types” says Lubin and feels likely of an exponential increase in activity in the ecosystem. He further added that it is overwhelming what’s going on in terms of our:
- Different product projects,
- New scalability technologies,
- New teams and projects,
- Developers that are entering our ecosystem,
- New large companies that are getting comfortable with our ecosystem.
The ethereum price had dropped below $300 some time earlier this week. ETH ultimately fell as low as $249. It was for the first time in the history since Nov. 2017. ETH has now managed to rebound to a present value of $287.