The crypto industry is on the rise again, breaking new records, but this time it’s on the bearish side of the market.
For example, Ethereum, the world’s second largest cryptocurrency by market capitalization, is suddenly surging from its decline just after it hit its all-time high this month when it topped the $ 4,300 mark. At the time of writing, it is changing hands at $ 2,407.54 and is down 33% in the last seven days.
As if it wasn’t enough to beat the altcoin, the number of Ethereum investors holding at least 100 coins fell to a three-year low of 42,928, according to Glassnode analytics data.
The fall of the aether
The Ethereum slump is happening at the same time that the broader crypto market is dealing with unfavorable news from many sources, starting in China, where bitcoin and crypto mining activities are concentrated, bringing the hammer down for those who own theirs Mining operations still continue.
This follows an equally bad trend with financial institutions in the country now being banned from participating in crypto transactions in an effort to address growing concerns about the negative impact of the mining of digital currencies like Bitcoin and Ethereum on the environment.
Ethereum is probably guilty
With Ethereum’s current blockchain network still based on the proof-of-work model, the mining concerns cited by the Asian giant apply. Ethereum is currently working on a switch to a more environmentally friendly proof-of-stake model. However, experts say this could take a lot of work and time.
As if being punished for your guilt, the price of the cryptocurrency continues to drop as large holders keep giving away their coins. Meanwhile, the network is hoping for a return to a bullish run with the upcoming upgrade of London Hardfork and EIP 1559.
Image courtesy of Cointelegraph News / YouTube
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