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Funds raised through initial coin offerings (ICOs) has significantly dropped off in the second half of 2018, as the macro cryptocurrency market conditions continue to weigh heavily on investor sentiment

A recent report by Bloomberg revealed that blockchain projects have raised $326 million in August, the smallest amount since May 2017. While this is still a sizeable number, it pales in comparison to the monthly average from the first three months of this year, which stood around $3 billion.

Autonomous Research via Bloomberg

Comparing the above data to the price chart of ether reveals a fairly close correlation between coin performance and investor interest in ICOs. Given that the majority of token listings were on the Ethereum blockchain, and projects commonly utilize ether as a form of funding, it is clear that the once lucrative fundraising method is beginning to collapse.

Ultimately, this reduction in demand for ether has facilitated the significant price drop witnessed over the past 6 months.

CoinCodex

Currently, ETH is still ranked 2nd in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens. However, its index weight has dropped to only 10.8%.

Given that short interest continues to rise to consecutive all-time highs, it’s clear that some investors are betting on more losses to come.

More: Funding for ICOs Drops to the Lowest in 16 Months
Related: The Price of Ethereum (ETH) Just Breached $200, What’s Next?

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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