Another day of carnage on Satoshi Street, as the broader cryptocurrency market falls by 6%, led by a sharp drop in the altcoin space. The Ethereum (ETH) price crash has accelerated, with ETH now trading below $1,800(R28 198).
ETH is currently trading 9% lower at $1770(R28000) as of the time of writing. With this, ETH is down more than 50% year to date, eroding more than $200 billion(R3.1TN) in investor wealth. The latest ETH price drop is due to concerns about the stability of its upcoming upgrade, ‘The Merge.’
The ETH gas fee, on the other hand, fell to $2.54(R40) earlier this week and is expected to fall even further. Santiment, an on-chain data provider, reported:
Ethereum’s fee levels remain extremely low, indicating very little activity and hints of stagnancy and fear. This #hibernation behaviour also applies to $DAI, $ETH’s frequently paired #stablecoin.
Aside from Ethereum, altcoins from other blockchain networks that serve the decentralized finance space have experienced deeper corrections in the last 24 hours. In the last 24 hours, Solana (SOL) has fallen 12% and Avalanche (AVAX) has fallen 18%.
According to the most recent Bloomberg report, the Terra collapse has caused DeFi players to become extremely cautious. According to the report:
The collapse of Terra, a blockchain ecosystem that supported one of the most significant experiments in decentralized finance, sent an already bearish market into a tailspin this month. DeFi developers are picking themselves up after Terra’s demise halved the sector’s total value, and sluggish markets aren’t going to convince them that now is the time to get back in the game.
Other popular altcoins, such as BNB, Cardano, and Polkadot, are also down 8-9 %. Despite the chaos in the altcoin space, Bitcoin has fared relatively well, with a 2% correction.