Ethereum has fallen more than 10% since trading opened on Friday and has fallen more than 71% from its November 2021 all-time high into the $1,387 range.

The second-largest cryptocurrency by market capitalization after Bitcoin, Ethereum boasts a market cap of $168 billion and has a robust ecosystem led by its enigmatic founder Vitalik Buterin. He continues to build and deploy smart his contracts and blockchain his infrastructure, powering everything from NFTs. , Cloud Computing Credits for Zero-Knowledge Rollup.

Ethereum is by no means isolated from the market slump that has affected the price of Bitcoin, which has fallen 10% to $19,900 over the past 24 hours.

ETH USDT
(Source: Kaiko)

The total value of all digital currencies fell below $1 trillion on Thursday.

Silvergate hits global crypto market capitalization hard

As of March 10th, the market cap of all cryptocurrencies reached $940.7 billion, a far cry from the $3 trillion in November 2021.

Ethereum aside, Bitcoin’s recent downward trend has given investors some encouragement that this is not an Ethereum-specific problem. Last week’s joint warning to banks by the Federal Reserve (Fed), FDIC, and OCC was a shock to the compound interest industry, as markets tumbled after Silvergate Capital announced it would scale back operations and liquidate a crypto-friendly bank. Only in relation to the liquidity risk associated with the bank’s cryptocurrency enterprise. wider anxiety.

Is Ethereum a security?

The recent lawsuit filed by the New York Attorney General could pose significant problems for cryptocurrency exchanges listing Ethereum.

After Ethereum moved to a “proof-of-stake” system in 2022 to operate the network, the debate about considering Ether (ETH) as security gained momentum. Previously, the network relied on the “proof of work” system used by Bitcoin, including mining to secure the blockchain. The process involved computers competing to solve cryptographic puzzles and win newly issued crypto while recording transactions on-chain.

Mining will be replaced by staking in the new Proof of Stake system. Ether holders can lock up their cryptocurrencies on the network to earn interest and contribute to transaction security. The change increased regulatory scrutiny and contributed to the debate over whether Ether should be classified as a security.

“By moving to Proof of Stake, ETH no longer relies on competition between computers, but on a pooling scheme that encourages users to own and stake their ETH.” said the lawsuit. “The move to Proof of Stake has had a significant impact on the core features and incentives for owning ETH, as ETH holders can now earn profits simply by participating in staking. .”

VItalik Liquidates Shitcoin

Downward pressure on Ethereum comes at a particularly sensitive time for the broader crypto market, with a repositioning of the narrative away from fraudulent projects and towards smaller, more concrete use cases, utility and value. occurs.

Read more: Vitalik Buterin slams BITE and other shitcoins for having no “redemption of cultural or moral values”.

By Jules

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