The cryptocurrency market is experiencing unprecedented euphoria in December 2017, and Ethereum is at the center of it all. With Bitcoin hovering just below $20,000 and the broader crypto market cap soaring past $500 billion, Ethereum has surged to $696 — a remarkable 51% gain in just seven days — fueled by an explosion of Initial Coin Offerings that are redefining what decentralized finance looks like.
TL;DR
- Ethereum hits $696, up 51% in seven days as the broader crypto market rallies
- ICO fundraising has surpassed $3.7 billion in 2017, with most tokens built on the Ethereum blockchain
- Smart contract platforms are emerging as the backbone of a new decentralized financial ecosystem
- CME Group set to launch Bitcoin futures on December 18, further legitimizing the crypto asset class
- 96% of economists surveyed by the Wall Street Journal believe the crypto rally is driven by speculation
The ICO Machine Powering Ethereum’s Rise
Throughout 2017, Ethereum has transformed from a promising blockchain platform into the undisputed foundation of the token economy. The numbers are staggering: Initial Coin Offerings have raised over $3.7 billion this year alone, and the vast majority of these token sales have been built on Ethereum’s ERC-20 standard. Every new ICO means more demand for ETH, as participants must purchase Ether to invest in these token sales.
Projects like Golem, Augur, Basic Attention Token, and 0x have demonstrated that Ethereum’s smart contract capabilities extend far beyond simple value transfer. These platforms are building decentralized versions of cloud computing, prediction markets, digital advertising, and exchange protocols — all running on Ethereum’s virtual machine.
The explosion of decentralized applications has pushed Ethereum’s market capitalization to over $67 billion as of December 16, 2017, according to CoinMarketCap data. That makes ETH the second-largest cryptocurrency by a wide margin, trailing only Bitcoin’s $326.5 billion market cap.
Smart Contracts as Financial Infrastructure
What makes Ethereum different from Bitcoin is its programmability. While Bitcoin functions primarily as a store of value and medium of exchange, Ethereum’s Turing-complete scripting language allows developers to create complex financial instruments that execute automatically without intermediaries.
Decentralized exchanges like EtherDelta are already facilitating token swaps without centralized custody. Lending protocols, though still in their infancy, are beginning to demonstrate how collateralized loans could work entirely on-chain. Prediction markets, insurance products, and tokenized asset platforms are all being prototyped on Ethereum.
The infrastructure being built today could form the backbone of a parallel financial system — one where smart contracts replace banks, decentralized exchanges replace traditional brokerages, and tokenized assets replace paper certificates.
Network Strain and Growing Pains
But Ethereum’s explosive growth hasn’t come without challenges. The network has been under significant strain in recent weeks, with transaction times slowing and gas prices rising as demand for block space intensifies. The launch of CryptoKitties in late November brought the issue into sharp focus, with the digital collectible game accounting for a significant percentage of all Ethereum transactions and causing noticeable congestion.
These growing pains highlight a fundamental tension in the ecosystem: the demand for decentralized applications is outpacing the network’s current capacity. Scaling solutions like sharding and Plasma are under active development, but they remain months or years away from implementation.
The Broader Market Context
Ethereum’s rally is occurring against the backdrop of an extraordinary crypto bull market. Bitcoin has risen over 1,800% since January 1, 2017, when it traded at approximately $1,000. The Cboe Futures Exchange launched Bitcoin futures on December 10, and the much larger CME Group is set to follow on December 18 — a development that many see as a watershed moment for institutional adoption of cryptocurrencies.
Altcoins are rallying broadly as well. Cardano’s ADA token surged over 90% in a single day, reaching a market cap of over $10 billion. Litecoin is trading at $299, Bitcoin Cash at $1,801, and even smaller tokens like Dash and NEM have posted double-digit gains.
Why This Matters
The 2017 crypto boom represents a pivotal moment for decentralized finance. While the current rally may be driven partly by speculation — as the 96% of Wall Street Journal economists who called it a bubble would argue — the infrastructure being built on Ethereum is real. Smart contracts, token standards, and decentralized applications are creating the building blocks of a financial system that operates without traditional gatekeepers.
Whether the current prices are sustainable is an open question. But the technological innovation underlying the ICO boom — programmable money, decentralized governance, and open financial protocols — has the potential to reshape finance regardless of where prices go next. The foundations of decentralized finance are being laid right now, and Ethereum is the platform where it’s happening.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always do your own research before making investment decisions.
$3.7 billion raised through ICOs in 2017 and 96% of it driven by speculation according to WSJ. Most of those tokens went to zero within 18 months.
96% speculation and people were shocked when it all crashed. the WSJ economists were right and crypto twitter called them dinosaurs lmao
most went to zero is underselling it. ICOratings found that over 80% of 2017 ICOs were outright scams not just bad projects
token_graveyard 80 percent scams is actually consistent with academic studies. Satis Group found 78 percent were identified scams. almost identical number
token an Satis Group study put it at 78% of 2017 ICOs being identified scams. stopped coins, no code, no product. your 80% estimate is dead on
CME futures launching dec 18 was the classic buy the rumor sell the news setup. topped out literally days after
topped at 20K on dec 17, CME launched dec 18, and it was a straight drop for the next year. the pattern repeated with CME ETH futures in 2021 too
CME listing = liquidity for shorts to enter. its been the same pattern every cycle. retail buys the hype, institutions load the short
Ines F called the CME pattern perfectly. BTC topped dec 17, CME launched dec 18. same thing happened with ETH futures in feb 2021, exact same playbook
Ines CME ETH futures in Feb 2021 had the exact same setup. futures launch = liquidity for shorts to pile in. its a feature not a bug at this point
3.7B raised in ICOs in 2017 and Satis Group found 78% were identified scams. ETH at 696 was basically the entire token economy pumping on hot air. CME futures on Dec 18 was the top signal nobody wanted to hear
ETH up 51% in 7 days to 696 and economists said 96% of the rally was speculation. they were right but it still went to 1400 a month later before it all collapsed
Stefan L. CME launched BTC futures Dec 18 and the top was Dec 17. same pattern with CME ETH futures in Feb 2021. the futures listing model has been a reliable top signal for 8 years running
ETH at 696 with a 51% weekly gain and people were still calling for 2000. CME futures on dec 18 was literally the exit liquidity event
Stefan is right that it went to 1400 after but that was the dead cat bounce. anyone who bought above 1000 in jan 2018 held bags for 3 years
CME launched BTC futures Dec 18 and the top was Dec 17. same playbook as the ETH futures top in 2021. derivatives listings are the exit signal
eth at $696 with a 51% weekly gain and CME futures about to launch. peak mania vibes
the ico machine was printing money and everyone thought it would last forever. that $696 eth was just the beginning they said lol
51% in a week on a $30B asset and nobody blinked. that is how you know the top is close. everything feels invincible right before it implodes
bear_whisperer 51 percent in a week on a 30B asset and people were still calling for 100K eth. the leverage was insane and the liquidation cascade proved it
96% of economists said it was speculation and they were right. 80% of those 3.7B in ICOs went to zero. the ETH survived but the tokens didnt
Tomoko H 96% speculation is generous tbh. the other 4% was probably wash trading. the entire 2017 ICO boom was a money printer for issuers and a shredder for buyers
eth at $696 felt like the world was changing. turns out it was, just not for the ico tokens that promised to change it. ETH survived, the tokens didnt
51 percent in a week and people were still saying it was different this time. CME futures launched 2 days later and the chart went straight down for 12 months
3.7 billion raised on ICOs and 80 percent went to zero. the ETH survived because it was the infrastructure bet not the token bet. same pattern every cycle
Prateek G. ETH was the picks and shovels play while everyone else was buying the gold that turned out to be pyrite. the lesson repeats every cycle and nobody learns