The global cryptocurrency market is down 6%, led by a sharp drop in the altcoin category. It’s another day in the bloodshed of Satoshi Street. The decline in Ethereum (ETH) price has worsened, with ETH now trading below $1,800.
At the time of writing, the price of ETH is down by more than 7% to $1777. With this, ETH has lost over 50% of its value year on year so far, eliminating over $200 billion in investor capital. The latest ETH price drop is due to concerns about the reliability of its upcoming upgrade, known as ‘The Merge’.
On the other hand, the ETH gas fee dropped to $2.54 earlier this week and is expected to drop further. According to on-chain data supplier sentiment,
“Ethereum is expanding its extreme lows and this low level indicates a fear of trading stagnation as well as decreased activity. $DAI, $ETH are often partnered by stablecoins, with similar There is a hibernation tendency.”
Watch altcoins fall in the DeFi sector
It is not just Ethereum, cryptocurrencies from other blockchain networks serving the decentralized financial industry have also seen more significant improvements in the recent 24 hours. In the last 24 hours, Solana (SOL) is down by over 9% while Avalanche (AVAX) is down by over 10%.
According to a recent Bloomberg story, DeFi participants have become 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. The overall price of the sector following the collapse of Terra Come down, DeFi developers are dusting themselves off, and sluggish markets aren’t going to convince them that it’s time to get back in the game.”
BNB, Cardano and Polkadot are among other notable cryptocurrencies that are down 8-9 percent. Despite the turmoil in the altcoin industry, Bitcoin has fared well so far, down just 2%.