Ethereum, the second-largest cryptocurrency by market capitalization is one of the day’s top losers, trailed by Dogecoin and Uniswap.
Ethereum has lost 7.6 percent in the last 24 hours, sliding close below the critical $3,000 level. According to CoinGecko, the cryptocurrency is currently trading at $2,934.
Extending the period, on the other hand, provides a considerably more upbeat storey.
Ethereum has gained 14.9 percent in the last week. Since the asset’s local lows on July 20, when it was trading at $1,734, the number two crypto has surged roughly 70%.
These movements are most likely the result of two major variables.
First, and as is customary, Bitcoin has been steadily rising from similar lows towards the end of July.
Bitcoin had fallen below the critical $30,000 price level at the moment, before surging to $45,000 on Sunday evening. The biggest cryptocurrency has cooled off today, losing over 4% in the last 24 hours.
The link between the two assets is widely known—when Bitcoin moves, the rest of the markets follow closely.
According to data aggregator Cryptowatch, the correlation between Bitcoin and Ethereum has been strong and favourable over the last 30 days.
The second element contributing to Ethereum’s recent climb is the network’s most recent upgrade, dubbed “London.” On August 5, Ethereum implemented one of its most anticipated changes, which included the inclusion of a coin-burn feature.
Ethereum Improvement Proposal (EIP) 1559 is the formal name for this integration. It entails the destruction, or “burning,” of a portion of the fees that users pay in ETH to complete their transactions. This integration has sparked discussions among enthusiasts about whether or not it is an extremely bullish event for Ethereum.
As a result, according to some analysts, the demand for the asset will continue to climb, while the supply of the commodity will become increasingly limited as more and more Ethereum gets destroyed.
As of right now, the network is burning approximately 1.84 Ethereum every minute (or $5,378 per hour). This represents a significant decrease since the upgrade became effective last week.
The Cryptocurrency Markets Have Stopped Trading Bitcoin and Ethereum haven’t been the only ones to suffer losses today.
Dogecoin has experienced the greatest decline in value among the top ten cryptocurrencies by market capitalization. The popular meme coin is currently selling at $0.23, representing a decrease of almost 12 percent over the last 24 hours.
Popular decentralised finance (DeFi) tokens such as Uniswap, Chainlink, and Aave have all experienced significant price declines.
These tokens have declined by 8.3 percent, 8.2 percent, and 7.3 percent, respectively, since the beginning of the year.
