Tue 20 Sep 2022 ▪ 9:00 ▪
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September marked the advent of The Merge, a milestone for Ethereum and the cryptocurrency industry. The transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) was successful. However, just days after the merger, it’s a grim reality check for the second largest cryptocurrency by market cap. Its market dominance has reportedly decreased significantly over the past 35 days. In fact, more than a month ago, this dominance was 19.5%, but the recent report shows a drop to 16.8%.
Ethereum (ETH) to the hard after The Merge?
According to the analyzes of the Market valuation of Ethereum (ETH)., the business is experiencing a significant decline. Recall that on August 14, each ETH was worth $ 1,996, with a market capitalization of nearly $ 239.74 billion. A figure that allowed him to show a significant dominance of the cryptocurrency market at 19.5%. While at the same time the dominance of Bitcoin (BTC) was close to 38.2% for a market capitalization estimated at 470.79 billion dollars.
While Bitcoin’s margin has remained nearly the same over the course of a month, the same cannot be said for Ethereum. The cryptocurrency is showing a decline in its market capitalization from $ 239 billion to nearly $ 166.64 billion. A loss that logically affects his market dominance which continued to decline until reaching 16.8%. The figure is even more alarming based solely on data from the last 24 hours. We note an aether regression of 5.8%. This rate even reaches 22.4% if we evaluate the trend of ETH over the last seven days. On the other hand, there is only a 1.4% drop per bitcoin in 24 hours, which is broadening its lead over Ethereum.
A 71.77% decline from the ATH in November 2021
The cryptocurrency market is going through a particularly difficult 2022. Despite occasional explosions, virtually all digital currencies are going through an unprecedented bearish phase. Bitcoin and ether are certainly the two most palpable examples with losses of more than 50% within a few months.
The success of The Merge could not solve all the problems of the Ethereum ecosystem. Certainly the merger has brought important gains, but for the whole year the losses are approaching 60%. Over the past 30 days, the second largest cryptocurrency in terms of market valuation has experienced a decline of 25.4%. Therefore, the value of ETH is currently between $ 1,471 and $ 1,376 per unit. We are a long way from its ATH reached on November 10, 2021 with a value of $ 4,878 per token. In less than a year, Ethereum experienced a down 71.77%and there is no indication that this figure will improve in the coming weeks.
In short, despite these declining figures, Ethereum continues to have significant dominance in the cryptocurrency market, far behind Bitcoin. For illustrative purposes, around 58.13 billion swaps were traded in the cryptocurrency sector in 24 hours. In these exchanges, $ 12.17 billion was ETH transactions, or just over 20%.
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PhD student in financial law and expert SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Thanks to his articles he naturally participates in the daily blockchain revolution for a better democratization of DeFi.