Latest from the Quantamize Blog

Ethereum and its dependency on Initial Coin Offerings

Sep 11, 2018

  • Ethereum tokens (ETH) are trading at 1-year lows of USD$191.47, a 54.51% decline since August 1st.  
  • Average daily transactions have fallen in-line with ETH’s price, currently sitting at roughly 579,743 transactions per day using a 7-day simple moving average.  
  • In August, Initial Coin Offering (ICO) funding saw its lowest levels since May 2017, receiving just USD$326 million in August compared to a monthly average of USD$2.3 billion in 2018.  
  • In the week beginning September 3rd, ICOs spent roughly USD$30 million of ETH treasury reserves, the most in any week since March 2018.  
  • Active DApp users have fallen 56% since its high of 528,000 users in January 2018, now sitting at just 231,000.  
  • ETH’s price is highly dependent on activity in the ICO market with over 1,062 tokens working directly off of the Ethereum bockchain.
  • Lack of funding in the ICO market and high levels of ETH treasury spending by ICOs have put downward pressure on ETH.