Ethereum drops below $2000

Ethereum fell below $2,000 for the first time in a month. HODLers hope today's pullback does not signal the start of a long-term bear market. The world's second-largest cryptocurrency by market cap briefly dropped below $2,000 in April – once in mid-April and then again in mid-May – before catching up, but each drop lasted only hours. Ethereum: the honorable crypto Ethereum was launched in late July 2015 and popularized the smart contract: self-enforcing financial contracts that run on the blockchain. NFTs have come from smart contracts: Unique cryptocurrencies, mostly based on Ethereum, started a spree that helped Ethereum rise to $4,100 this year. Irreplaceable tokens are a popular way to sell digital art as each coin is unique. Beeple sold a JPEG collection as NFT in March of this year for $69 million. This bull run of Ethereum's smart contracts has spurred the development of decentralized autonomous organizations. DAOs use automated decision-making processes and smart contracts to enable an anonymous group of people to run themselves like real organizations. Although thieves robbed the original $55 million DAO in 2016, DAOs are now the mainstay of decentralized finance. Polychain Capital CEO Olaf Carlson-Wee estimates that DAOs have raised around $75 billion. Former Coinbase employee calls them "the second major breakthrough in blockchain after digital cash." Ethereum 2.0 is expected to be released later this year. The upgrade promises lower costs, faster transaction processing, and a more than 99% reduction in overall energy needs as the network transitions from an energy-intensive proof-of-work consensus mechanism to a greener proof-of-stake model. Even if things look bleak, Ethereum's long history proves that it is still an invaluable part of the ever-diversifying crypto universe. The views and opinions of the author are for informational purposes only and do not constitute certainty.

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