Fundamental Analysis of Ethereum
My Checklist:
1 What is the purpose of this coin? Does the coin solve a unique problem?
Ethereum is a decentralized platform that runs smart contracts:
Applications that run as programmed without any possibility of downtime, Secure, Free from censorship, Fraud resistant or any third-party interference. These applications run on a custom built blockchain. An enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract), all without a middleman or counterparty risk. Ethereum enables developers to build and deploy decentralized applications. Ethereum is currently the biggest dApps and Smart contracts platform. Ethereum’s has a first-mover advantage in the blockchain platform for smart contracts and decentralized applications.
2 What is market capitalization of this coin?
Currently, the market capitalization of Ethereum is 17 billion USD. It is ranked 2nd just before Bitcoin in terms of market capitalization. It accounts for 10% of the total market capitalization of all the Crypto currencies.
The Cryptocurrency market is expected to reach 3-8 trillion USD in the next couple of years according to experts. If Ethereum maintains its number 2 position, the market capitalization is expected between 0.3 to 0.8 billion USD. Hence the projected price of Ethereum will be between 18 to 47 times the current price. (167USD will be 3006 to 7850 USD).
3 How long has the coin been in existence?
Ethereum was launched in 2015. It has been around for long time considering the Crypto currencies were first launched in 2009.
4 What type of manager is running the business？What is the total experience of the CEO/CTO? What are their total years of business experience?
Vitalik Buterin is the CEO of Ethereum. He also serves as the Magazine Head Writer of Bitcoin. He serves as an Advisor at Fenbushi Capital. He serves as the Member of Advisory Board at Cryptape Co., Ltd. Mr. Buterin was previously the General Partner at the firm.
. In late 2011, Vitalik Buterin started the Bitcoin Magazine. Bitcoin Magazine was and is still one of the largest online media outlets dedicated to Bitcoin and cryptocurrencies. Vitalik Buterin found that using the Turing language which allows solving problems according to an algorithm using RAM. This was how the Ethereum project was first created. In 2013, Vitalik Buterin published a white paper explaining the basic concept of Ethereum
Vitalik Buterin is one of the most prominent experts in cryptocurrency. His views are respected in the Crypto space. Ethereum is widely used by NASA, the largest US retailer Walmart and hundreds of ICO projects.
5 Are they reputed Advisors as part of this project? Have these advisors managed successful projects in the past?
Ethereum does not have any advisors who have handled a multi-million-dollar project before.
6 Does this coin have a Working product OR Alpha or Beta or Prototype or Demo or only an Idea/unknown? How many users/decentralized applications are using this product
Ethereum has a fully Working Product. The Ethereum blockchain is the most active smart contract platform. More than 90% of the top 100 Cryptocurrencies by market cap are built on top of Ethereum. More than 80% of the top 800 Cryptocurrencies by market cap are built on top of Ethereum. There are around 0.38 million active Ethereum addresses as of today.
Adoption of Ethereum can be measured by the network effect of decentralized applications (dApps) and not the number of users in the blockchain network.
The best metric for the success of Ethereum is not how many DAPPs are deployed or how many transactions those DAPPs have. The number of users of dApps is an important metric. It will naturally increase as the network effect of dApps, scalability of Ethereum, and user interface of dApps continue to grow, improve.
7 Does the coin have its own Blockchain?
Yes. Ethereum has its own blockchain.
8 Does the coin have decent trading volumes?
Ethereum has the 3rd largest daily trading volumes after Bitcoin and Tether.
9 Does it have a blockchain explorer/message board/reddit
Yes. It does have a blockchain explorer, message board, reddit.
10 Is the coin scalable (support huge number of transactions)?
With many decentralized applications (dApps) built on top of Ethereum, it’s the leader of ecosystem creation amongst blockchain projects.
11 Does the coin have high Volatility? Higher volatile coins are less reliable
No. Ethereum has lesser volatility compared to its competitors