Following a crash of well-known cryptocurrency exchange company Coinbase, other cryptocurrencies such as for example Ethereum and Bitcoin have reacted to the events accordingly.
With the technical problems that Coinbase have now been encountering using their system, existing users have now been panic selling to be able to escape the maximum amount of money while they can. This, consequently, has additionally affected other cryptocurrencies and pushed them to reduction in value as folks are massively selling as a result.
Coinbase opens up opportunities for other platforms
While many investors aren't satisfied with the crash of Coinbase consequently of the Asian frenzy, it may prove a great sign for the cryptocurrency market. Considering that the escalation in the worthiness of the cryptocurrency market, many investors have now been putting their profit many other cryptocurrency platforms to be able to make the most of the riding trend. Coinbase also rode along this trend when a huge selection of investors decided to test purchasing their platform as well.
In accordance with a graph reported by Cryptorial, it may be seen that since early 2016, there is a sharp escalation in the amount of Coinbase users, up to after January 2017 (refer to the graph below).
- Source: Naira Digit
This didn't bode well for Coinbase as their system couldn't withstand the significant surge in followers. At the same time frame, this sign shows just how much of a top demand cryptocurrencies have. Although it might look bad at this time, the cryptocurrency market should experience positive growth in the foreseeable future as a result of surging investors.
Buying opportunity a dip
With all the current panic selling occurring following the crash of Coinbase, both Ethereum and Bitcoin present an chance for other investors to jump in and invest.
Earlier this season, Bitcoin reached an all-time high and Ethereum saw steady growth. As reported by a regular graph by Cryptocurry, it may be seen that if March, the purchase price skyrocketed up sometime in the sooner section of May and transpired again. After that it slowly regained its momentum but slowly went down. Ethereum, on another hand, has maintained stability this season and is expected to increase again later in the entire year (refer to the graph below).
- Source: Cryptocurry
Needless to say, this only shows a temporary decline in value for some cryptocurrencies due to the panic selling that's happening because of the crash of Coinbase.
However, this will be a good chance for more established cryptocurrency platforms like Ethereum and Bitcoin to obtain additional investors. This really is also beneficial to the investors in an expression that even the newer investors may take part in the ability of buying a medium that's lots of room for growth. It can be an chance for Coinbase to boost their system so they may focus on how many investors which is putting their money into cryptocurrencies in the long run when the cost goes up.
With the price tag on cryptocurrencies expected to go up by another tenfold in 2010, it wouldn't be recommended to market everything just yet.
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