The global cryptocurrency market is down 6%, headed by a strong drop in the altcoin category. It’s yet another day of Satoshi Street’s bloodbath. The Ethereum (ETH) price meltdown has worsened, with ETH now trading below $1,800.
At the time of writing, the price of ETH has dropped more than 7% to $1777. With this, ETH has lost more than 50% of its value year to date, wiping out more than $200 billion in investor capital. The most recent ETH price drop is due to concerns about the reliability of its upcoming upgrade, which is known as ‘The Merge.’
The ETH gas charge, on the other hand, plummeted to $2.54 in the start of this week and is expected to fall even more. According to Santiment, an on-chain data supplier reports,
“ Ethereum is extending its extreme low levels and this low level trading is pointing towards decreased activity along with the fear of immobility. $DAI, $ETH’s often partnered stablecoin, has the same hibernation tendency. “
Altcoins In Defi Sector See A Downfall
It’s just not Ethereum, cryptocurrencies from other blockchain networks that serve the decentralized financial industry have also seen more significant corrections in the recent 24 hours. In the previous 24 hours, Solana (SOL) has dropped more than 9% while Avalanche (AVAX) has corrected by more than 10%.
According to a recent Bloomberg story, DeFi participants have been increasingly cautious as a result of the Terra crash. According to the study, “The collapse of Terra, a blockchain ecosystem that supported one of the largest decentralized financial experiments, sent an already pessimistic market into a tailspin last month. After Terra’s collapse reduced the sector’s overall worth, DeFi developers are dusting themselves down, and sluggish markets aren’t going to convince them that now is the time to get back in the game.”
BNB, Cardano, and Polkadot are among the other famous cryptocurrencies that are down 8-9 percent apiece. Despite the turmoil in the altcoin industry, Bitcoin has done rather well thus far, with only 2% fall.