Ethereum price struggles despite positive derivatives market data

Yesterday’s attack pushed ETH’s monthly losses up to around 12%.

  • Ethereum has continued to stay in the AU $ 4,000 to AU $ 4,800 price range for over a fortnight now.
  • Following yesterday’s liquidations, the total market cap of the crypto industry fell to US $ 1.91 trillion (around AU $ 2.63).
  • More than 73% of all available NFTs in circulation today have only witnessed a single transaction in the past 3 months, the report suggests.

Ethereum, the second largest cryptocurrency in the world by total market cap, has come under a lot of downward pressure over the past 36 hours, trading for AU $ 3,940. As a result, ETH’s weekly losses now stand at just over 16%.

That said, even though Ethereum appears to be stuck in a price rut – after struggling to properly cross the AU $ 4,800 threshold – based on derivatives data available online, it seems professional traders are pretty bullish. as to the future of altcoin.

As for the cause of this ongoing collapse – which is affecting not only the crypto market but also a number of traditional industries – many experts believe that the default of Evergrande, a large Chinese real estate company, on its $ 300 billion in loans outstanding with looming fears of inflation may have resulted in the creation of a “fear-based” business environment.

Additionally, a few days ago, United States Secretary of the Treasury Janet Yellen wrote an op-ed in which she called on members of the United States Congress to raise the US debt ceiling again, claiming that if such a decision were not taken, it could lead to a “generalized economic catastrophe”. Finally, over the next few hours, the Federal Reserve is expected to make a decision as to when it plans to reverse its existing US $ 120 billion monthly asset purchase program.

How to buy Ethereum

Is the NFT market dead?

Even though the non-fungible token (NFT) market continued to dominate headlines across the globe throughout the year – in large part thanks to the success of projects such as CryptoPunks, Bored Ape Yacht Club and Art Blocks Curated – a closer look at the space shows that despite a few million dollars in sales for some NFTs, the overwhelming majority of low-priced NFTs have not been able to accumulate any real value, this which makes them completely illiquid.

According to data made available by Bloomberg, 73.1% of all available NFT assets in circulation have seen only one trade in the past 3 months. If that wasn’t enough, even NFT’s daily sales count has continued to decline over the past two months – with numbers dropping from an all-time high of 138,109 on August 30 to just 42,372 on September 21.

Finally, other notable metrics related to the NFT space – including active market portfolios, primary market sales, secondary market sales, etc.

Another DeFI platform victim of a hacking scandal

According to an official announcement, the decentralized finance platform (DeFi) Vee Finance reported that it was the victim of a hacking exploit that saw criminals making their way with 8,804 ETH and around 214 BitcoinBTC (estimated at around 35 million US dollars at time of publication). The development comes just a few days after the commissioning of the main network of the project on the Avalanche network.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dig deeper into learning about Ethereum, and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer:
This information should not be construed as an endorsement of the cryptocurrency or any specific provider, service or offer. This is not a trade recommendation. Cryptocurrencies are speculative, complex, and carry significant risk – they are very volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own situation and get your own advice before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the websites of relevant regulators before making any decisions. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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