Tue 20 Sep 2022 ▪ 9:00 am ▪
min read – by
September marked the arrival of The Merge, a milestone for Ethereum and the crypto industry. The transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) was ultimately a great success. Nevertheless, just a few days after the merger, it is a sad reality check for the second largest cryptocurrency by market cap. Market dominance has reportedly fallen significantly over the past 35 days. Indeed, more than a month ago, this dominance was 19.5%, but the recent report shows a drop to 16.8%.
Ethereum (ETH) in Trouble After The Merge?
According to the analyzes of the Ethereum (ETH) Market Valuation, the asset is undergoing a significant decline. We recall that on August 14, each ETH was worth $1,996, with a market cap of nearly $239.74 billion. A figure that allowed him to show significant dominance of the crypto market at 19.5%. At the same time, bitcoin (BTC) dominance was nearly 38.2% for a market cap estimated at $470.79 billion.
If bitcoin margin remained nearly identical in a month, the same cannot be said for Ethereum. The cryptocurrency shows a decline in its market capitalization, dropping from $239 billion to nearly $166.64 billion. A loss that logically affects his market dominance that further decreased to 16.8%. The data is even more alarming, based solely on the numbers for the past 24 hours. We note a regression of ether of 5.8%. This percentage even reaches 22.4% if we evaluate the trend of ETH over the past seven days. On the other hand, there is a drop of just 1.4% for bitcoin in 24 hours, extending its lead over Ethereum.
A 71.77% drop since the ATH in November 2021
The cryptocurrency market continues a particularly difficult year 2022. Despite occasional outbursts, virtually all digital currencies are experiencing an unprecedented bear phase. Bitcoin and ether are certainly the two most palpable examples with losses exceeding 50% in the span of several months.
The success of The Merge could not solve all the problems of the Ethereum ecosystem. Sure, the merger has produced significant gains, but full-year losses are approaching 60%. In the past 30 days, the second cryptocurrency has recorded a 25.4% decline in market valuation terms. Thus, the value of ETH currently fluctuates between $1,471 and $1,376 per unit. We are a long way from the ATH that was reached on November 10, 2021 with a value of $4,878 per token. In less than a year, Ethereum has a a drop of 71.77%and there is no indication that this figure will improve in the coming weeks.
In short, despite these declining numbers, Ethereum continues to maintain significant dominance in the crypto market, far behind bitcoin. To illustrate, approximately 58.13 billion swaps were traded in the cryptocurrency industry in 24 hours. On these exchanges, there were $12.17 billion ETH transactions, or just over 20%.
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PhD student of financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Naturally, thanks to his articles, he joins the daily blockchain revolution for a better democratization of DeFi.