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What Would Cause Ethereum To Crash?

 

The causes why Ethereum can crash are as follows-

 

1. Smart Contracts Competition 

 

Ethereum is famous because of its platform that provides blockchain developers with the tools they need to build decentralized applications. With the help of this platform, many blockchain start-ups can build ERC-20 tokens and lock them in smart contracts. Straits, Lick, and EOS are the new startups competing for Ethereum. They all have faster speed compared to Ethereum.

 

2. Market Correction

 

Ethereum is not the only coin whose price per unit is decreasing. Almost all cryptocurrencies have faced a price drop in the last few months. Almost everyone invested in Ethereum to earn more profit in the short term, often called FOMO (fear of missing out). Thorium’s market will continue to crash until and unless it hits stability.

 

3. ICOs Following Competition 

 

We all know that Ethereum built startup holds an ICO; they can easily sell their ERC-20 token in return for Ethereum coins. So, if the startups start losing interest in Ethereum and start moving to other competition like Lick, it's obvious that they will start accepting Lick coins in their ICOs. As a result, ether's coin and the price will decrease.

 

These are the main causes of why Ethereum can crash; a few more causes are there, including critical bugs during an update, major exchanges hacked, etc.

 

The Bottom Line

 

We have mentioned almost all the important reasons that can crash the Ethereum market. To know more about this, you have to browse the internet.