The cryptocurrency market has extended the sell-off that began after the Ethereum crash this weekend, with the total capitalization of all tokens now close to $900 billion from $1 trillion. The global value of these assets slipped off that mark last week as the technology migration of the blockchain smart contract was completed, leading to a “news sale” event. After an initial lull, with the transition from consensus to proof of stake successfully completed, investors began offloading their positions into ether, ethereum network unit, bitcoin, and other altcoins.
The cryptocurrency market fell almost 10% at the hands of Ethereum after “The Merge.” The merger predictions pushed the price of ETH in early September from $1,500 to nearly $1,800 on September 10. However, a drop in the markets on Tuesday due to higher-than-expected inflation in the US affected cryptocurrencies.
An article from Criptonoticias confirmed that the anticipation about changing the consensus mechanism in Ethereum is partly due to the fact that it is the first large network to leave mining and adopt Proof of Share.
Barely a few hours have passed since the merger with Ethereum and the confirmation that there will be a new token whose network will continue to be mined. However, the price of this new token that is being traded on a handful of exchanges in the market has already fallen. Quote ETHPoW (ETHW), which is a representation of the future Hard Fork token found on exchanges like FTX, Bitstamp, or Poloniex down by up to 50% after integration is activated.
It should be noted that what is being traded on stock exchanges is a representation of that token, which will be launched this evening, Thursday, September 15.
In the hours after the merger, The price of ETHW has dropped from over $50 to around $18 according to CoinGeko. This price arises from the average between the exchanges it trades on, although for ETHW low liquidity and volume, the data varies a lot from one platform to another.
Cryptocurrencies: What do analysts think?
Experts expect the leading cryptocurrency to continue its rally in the coming days and push the entire market as indicated by the Relative Strength Index (RSI), which shows a bullish divergence on the daily time frame.
“This happens when the price makes a lower low and the RSI reaches a higher high, which usually leads to a future uptrend,” explains Marcus Sotirio, analyst at GlobalBlock.
However, analysts remain cautious as the macroeconomic environment continues to frighten investors due to the European energy crisis.
What is a file Bitcoin Lightning Network?
But while this news gives reason to the pessimists, the fundamentals of bitcoin are growing day by day, as the number of bitcoins in the world is increasing. lightning network It continues to set all-time highs. There are approximately 4,700 bitcoins on the Lightning Network. In addition, MicroStrategy announced Tuesday that it is working on solutions to bring millions of people into the Lightning Network.
The Lightning Network is a scalable solution built on top of Bitcoin, allowing users to quickly send and receive BTC with virtually no fees, “so if this is adopted globally, ‘crypto’ will have a strong benefit with the payment network,” he says. Sotirio.
However, they are on the alert in the market due to the imminence of a potential “black swan” in September, which could send prices to their lowest levels of the year.
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