These are crucial times for the crypto market and the cryptocurrencies as the market at present is going through a severe crash. Almost every cryptocurrency, say Ethereum or Bitcoin, is valued at half of its original or all-time high. There are various factors at play here, and just like the 2017’s crypto crash, the blame is put solely on China’s crackdown regarding crypto mining and restricting its citizens from ever using or trading in cryptocurrency.
But there is a bigger picture at play here as Elon Musk’s negative tweets regarding the performance of Bitcoin and how it is drilling a hole in the environment’s safety practices is basically the thing that initiated these series of events that have now transformed into a market-wide crash.
Ethereum, Along with its Competitor Cryptocurrencies, has Taken a Heavy Blow
Anyway, talking about the price of Ethereum, it has fallen below the $2k for the very first time since April 7th. The all-time high for Ethereum, which was $4165, no longer holds any significance as the price is now half of this. The market cap of Ethereum has also halved in the course of this crypto crash which is a pretty harsh blow and momentarily roots out any and all development or work done to strengthen its blockchain.
According to a guided estimate, Ethereum has fallen about 18% in total regarding the past day and more than 45% in the past week or so. This is way more than Bitcoin as it is the cryptocurrency that happened to be in the question for a rapid crash, given Elon Musk’s tweet’s pure focus was Bitcoin. Bitcoin has fallen by 5.5% in the past day or so and 30% in total in the past week.
These are some pretty great numbers as compared to the scenario around Ethereum, which doesn’t look any greater. Ethereum uses the same proof-of-work mining mechanism that is valid for Bitcoin and therefore has the same energy-intensive footprint as Bitcoin’s. Ethereum, on the contrary to Bitcoin, is up for a modification regarding its energy consumption by switching to a proof-of-stake network later this year. This will make Ethereum’s entire blockchain 99.5% more efficient in terms of energy. Until that happens, things might not start to turn up for Ethereum.