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For the brief period of ICO mania last year, Boyaparti argued, ether suddenly attracted reservation demand because investors needed to acquire and hold a store of ether to participate in the ongoing flow of ERC-20 token offerings.

But now that flow has stopped. The issuers of those tokens who really just wanted dollars to fund their operations — not a store of ether with which to conduct smart contracts — are now faced with an existential threat if they don’t dump the rapidly falling ethereum tokens they hold. Hence the conversion of a virtuous circle into a vicious circle.

Jeremy Rubin, a Stellar developer and former MIT colleague of mine, argued in a TechCrunch piece that these and other aspects of the ethereum ecosystem could drive the price of ether to zero.

Lengthy article on CoinDesk.