Nataly Kambur
The ups and downs currently seen in the global market of digital currencies do not reflect the current state of affairs in the market, Joseph Lubin thinks. By the way, he is the founder of ConsenSys and a co-founder of Ethereum, the world's second-biggest cryptocurrency in terms of market cap.
In particular, he thinks there's nothing wrong about the continuous ups and downs shown by cryptocurrency exchange rates on a daily basis. Moreover, such fluctuations are even good for the digital currency since they contribute to the improvement of the entire ecosystem.
Lubin is a realist. That's why he calls the rally seen in late 2017 a price bubble. Even more, according to his calculations, this is the 6th and biggest bubble in the global cryptocurrency market ever since it came into existence. There is another distinctive feature when it comes to the latest bubble. The thing is, unlike the previous bubbles, the market took the burst of the last one for granted and reacted in a relatively reserved way to this.
At this point, the cryptocurrency market is at its initial stage when the fundamental infrastructure is being created while we can see the market retrace amid increasing upward potential. even though the ups and downs are inevitable, Lubin thinks that there is strong correlation between the infrastructure and the value of cryptocurrencies.
As for the increased volatility, it's of purely speculative nature driven by traders and investors. That's why the current downtrend doesn't imply any problems with the cryptocurrency infrastructure.
His words are backed by the market behavior. On August 14th, Ethereum dropped down to 251 dollars, the lowest price level since SEptember 2017. The next day, the exchange rate increased all the way up to 286 dollars, NordFX reports.
Nataly Kambur
