The great ‘dip-ression’ continues with over $1 trillion still mopped off the total crypto market capitalization.
BTC – the once-qualified occupant, has since been thrown out of the exclusive trillion-dollar club, having lost its major dominance and 50% of its value in just six weeks.
ETH Unearthing Lows
Ether users scampering to salvage what’s left of their dwindling leverage after seeing red drove gas prices to the roof with some shelling out as high as $2000 just to enroll their leverage on the next transaction. “It’s a crazy frenzy,” one user said, bringing to light one of the biggest issues with the ETH blockchain.
Given the numerous DeFi hanging on the ETH line, the crypto-crimson season has become a survival of the wealthiest on the network as over $9 billion worth of cryptocurrencies raced to liquidate -guzzling over 1,500gwei per transaction – before further price drop erodes their gain.
ETH, which was on an impressive ATH run a week ago, surpassing the $3k, $3.5k, and $4k milestone with many touting a $5000 milestone, has had to suspend its trend to save face.
BTC In Drowning Seas
For BTC, the challenge is real. Its market dominance has been shrinking faster than the ice caps on the North pole, and it’s no coincidence to see that part of the reason for this is the growing global concerns about its contribution to global warming.
But it’s no new news, and BTC mining doesn’t even come close to the top ten activities of man that harm the environment.
Seeing that the BTC market already began showing signs of a transition from the hands of short-term private investors to long-term corporate holders according to an Opimas report, there is the consolation that the current downtrend might be an avenue to purge away lily-livered investors on the BTC and ETH chain.
However, it is a fact that the market will miss many millions if not billions of dollars worth of Chinese patronage which have been withdrawn on account of government hardening clampdown.
With BTC hovering around $37,000 and ETH edging just above the $2500 resistance, it is unclear how long the current energy concerns will trend or what new development will spur a rebound or even further spiral, but one thing remains certain: The cryptocurrency market will continue to thrive on.