Amid rising fear of economic recession, interest rate hikes, and a stronger dollar, the crypto market ended-up being in red. Ethereum (ETH) dropped by seven percent and was trading low even after ‘The Merge’ at $1,279.86, at the time of writing the story. “ETH is remaining unstable cause the merger is not yet completed as the mainnet and testnet are still running in parallel. Ethereum has announced the closure of Ropsten and Rinkeby testnets in Q4, 2022, and Q3, 2023, respectively,” Shrikant Bhalerao, CEO, seracle, told FE Blockchain.
As per industry experts, there is still a sliver of uncertainty about the future of Ether and the Ethereum network. “Many of the primary competitors to ETH, including Cardano, Polkadot, and Solana, have leveraged the utilisation of proof-of-stake (PoS) as a differentiating factor for years. Given market volatility, rising interest rates, inflation that looks sticky, prices for coins that lack other points of differentiation could drop further,” Raj Kapoor, founder, India blockchain alliance, said.
According to data from blockchain.com, a cryptocurrency financial services company stated that the global revenue from bitcoin mining has dropped to $17.2 million a day amid a crypto winter and global energy crisis.
Furthermore, there has been a rising concern among cryptocurrency investors across all asset classes as return-on-investments (ROIs) have fallen dramatically, but the impact on crypto is worse owing to the volatile nature of the market. “Often investors choose to sell their holdings during market fluctuations to avoid losses, but this may not be the best strategy. Instead, investors need to be detached from their portfolio to prevent panic sales or actions they may regret later,” added Gaurav Mehta, founder, Catax, a crypto exchange company added.
As per industry experts, popular altcoins witnessed a significant dip in their values. “As the broader selloff in the asian markets created selling pressure across crypto assets. Unfortunately for bulls, the good momentum for stocks and cryptocurrencies quickly faded, and Bitcoin lost the majority of its intraday gains as it fell back below $19,000,” added Kapoor.
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