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Ethereum and other cryptocurrencies are in such vulnerable conditions that no effort seems fruitful for revival
Market facing ups and downs due to a number of scenarios, asset prices facing fluctuations for some time is quite normal. But the consistent decline in the price of cryptocurrencies and market cap of the overall crypto market since the starting of this has become a major concern now. The market is going through hard times where those who were trying to keep the hopes in the market, those bulls making efforts to prevent further drops in the market someway. But the consistent falling market resulted in somewhat spoiling their efforts.
Ethereum (ETH) is currently trading at about $1066, after a fall of 3.38% in a day but it’s down about 36% from where it was one week earlier. These figures are enough to understand that the largest altcoin in the crypto market is going through a dangerous situation. According to an on-chain trecker, Parsec Finance, lenders could face a massive fall where $500 million worth liquidation could get away from the market.
This huge liquidation resulted in adding fuel to further drops followed in the market along with a massive funds outflow from platforms like decentralized applications on the network. Even after the efforts, the current dangerous position of Ethereum has put numerous ETH addresses facing all time high losses.
According to Glassnode, the number of Ethereum addresses reported in loss based on moving average of last days has reached an all time high. Etheruem addresses in profit in terms of percentage reached at a low of 23 month with 52.32%.
Crypto market is facing one of the worst hits where digital assets of more than $1 billion were liquidated in just one day on the 16th day in the wake of the crypto crash. On top of that, approx $480 million worth of funds disappeared from centralized exchanges in a short span of a day.
Even the prominent crypto lending firm, Celsius had put its operations on halt given the massive sell offs. One of the leading Venture Capitalist firms, Three Arrows Capital has also closed its poisons worth $400 million and still about hundreds of million remain at risk in form of additional loans.
As far as recovery of Ethereum (ETH) is concerned, it very much depends upon the upcoming Merge. This could be said after looking at the total value locked in deposit contract of ETH 2.0, that has reached its new highs.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
