Ethereum co-founder Joseph Lubin said that he does not see the recent slump in cryptocurrency prices as a constraint to growth in the market. In a recent interview with Bloomberg, Lubin said the collapse in prices is not a new development as it has always been present in the “blockchain ecosystem since 2009 when Bitcoin was invented.”
He went further to note that in spite of the slump in prices, under scrutiny, the price bubbles will seem like “little pimples on a chart” because “growth has been exponential,” as well.
“People are rushing in because they see the promise of the technology. But then, we build more fundamental infrastructure, we see a correction, and the potential gets even more impressive… I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem.”
Lubin, who left Ethereum to launch ConsenSys, an organization that helps startups build on the Ethereum network, stated that each bubble has led to a “tremendous surge in activity” which has seen development activity rise by “two orders of magnitude” since the jump in prices last year December.
For Lubin, bubbles are part of the ecosystem that has positives as well as negatives. Each of the bubbles experienced in the market has brought more “attention into our ecosystem,” he explained. The bubble has created attention for the industry which has attracted entrepreneurs, developers and investment and the prospect of “building fundamental infrastructure” and creating more value.
The constant volatility in crypto prices, however, was attributed to “trader types,” but Lubin insists the recent slump in prices won’t slow down adoption or development of core infrastructure for the ecosystem.
“We feel the exponential increase in activity in our ecosystem. It is overwhelming what’s going on in terms of our different product projects, in terms of new scalability technologies, new teams and projects, developers that our entering our ecosystem, new large companies that have gotten comfortable with our ecosystem.”
Earlier this week, the ethereum price dropped below $300 for the first time since Nov. 2017. ETH ultimately fell as low as $249 before rebounding to a present value of $287.