Cryptocurrency Market Freeze: Ethereum Below $2,000 Is Facing A Risk Crisis
2022-05-24 16:23:17
Ethereum's transition to PoS Is delayed once again until August
After half a month of turmoil in the cryptocurrency market and the stunning collapse of the stablecoin TerraUST, the total market capitalization of all cryptocurrencies has now lost close to a fifth. Such a change in the cryptocurrency market is not only taking a toll on investors but also hurting entrepreneurs and founders of various tokens.
Vitalik Buterin, the co-founder of Ether, is one such example. He took to Twitter on May 20 to reveal that he is now no longer a billionaire. Ethereum has been declining in price since November 2021, when its price peaked at $4,800. ETH has now lost 60% of its value. According to the Bloomberg Billionaires Index, not only Vitalik Buterin but also Changpeng Zhao, founder of the Binance Cryptocurrency exchange, evaporated more than $80 billion in 2022, accounting for 84% of the total. There are other reasons for this token decline.
According to investors' trading prices on the international digital currency Gate.io exchange, at the time of writing the price of ETH was $1,991.05. The volume of transactions in 24 hours was $14,244,057,718. The high inflation rate has had a significant impact on the cryptocurrency market. With such market volatility, how long will Ethereum face such a crisis? When will investors see the price rebound?
At a recent ETH Shanghai Web 3.0 Developer Summit, Ethereum co-founder Vitalik Buterin mentioned that the PoS transition scheduled to go live in June may be delayed until August to complete The Merge and that this is a major test that will be completed using a large existing test network containing many applications and moving into PoS. Although he said the release could be in August, he also expressed that the delay could be extended to September or October if it is riskier. After the merger, Ethernet will be divided into The Surge, The Verge, The Purge and finally Splurge.
According to the Federal Reserve's ninth annual report on the results of a study of 11,000 people in October and November 2021, in 2020, 12% of U.S. adults hold or use cryptocurrencies, 11% hold them as investments, 2% use them for purchases or payments, and 1% sends them to friends or family. Investors who hold cryptocurrencies "have disproportionately high incomes, almost all have traditional banking relationships, and often have other retirement savings." 46% earn $100,000 or more per year, and 89% of those who are not retired have retirement savings. 29% earn less than $50,000 per year.
However, such data has been growing since 2 years ago. The number of people choosing to invest in cryptocurrencies is currently increasing, and the number of people that buy Ethereum stable coins is also on the rise, even as its price continues to fall. This shows that people are still looking forward to the day when cryptocurrencies will rebound. However, people need to consider carefully before investing in cryptocurrencies as it is a high-risk investment.
After half a month of turmoil in the cryptocurrency market and the stunning collapse of the stablecoin TerraUST, the total market capitalization of all cryptocurrencies has now lost close to a fifth. Such a change in the cryptocurrency market is not only taking a toll on investors but also hurting entrepreneurs and founders of various tokens.
Vitalik Buterin, the co-founder of Ether, is one such example. He took to Twitter on May 20 to reveal that he is now no longer a billionaire. Ethereum has been declining in price since November 2021, when its price peaked at $4,800. ETH has now lost 60% of its value. According to the Bloomberg Billionaires Index, not only Vitalik Buterin but also Changpeng Zhao, founder of the Binance Cryptocurrency exchange, evaporated more than $80 billion in 2022, accounting for 84% of the total. There are other reasons for this token decline.
According to investors' trading prices on the international digital currency Gate.io exchange, at the time of writing the price of ETH was $1,991.05. The volume of transactions in 24 hours was $14,244,057,718. The high inflation rate has had a significant impact on the cryptocurrency market. With such market volatility, how long will Ethereum face such a crisis? When will investors see the price rebound?
Ether's Transition to Proof of Stake Delayed Again
At a recent ETH Shanghai Web 3.0 Developer Summit, Ethereum co-founder Vitalik Buterin mentioned that the PoS transition scheduled to go live in June may be delayed until August to complete The Merge and that this is a major test that will be completed using a large existing test network containing many applications and moving into PoS. Although he said the release could be in August, he also expressed that the delay could be extended to September or October if it is riskier. After the merger, Ethernet will be divided into The Surge, The Verge, The Purge and finally Splurge.
Will There Be More Investors Considering Ethereum Tokens?
According to the Federal Reserve's ninth annual report on the results of a study of 11,000 people in October and November 2021, in 2020, 12% of U.S. adults hold or use cryptocurrencies, 11% hold them as investments, 2% use them for purchases or payments, and 1% sends them to friends or family. Investors who hold cryptocurrencies "have disproportionately high incomes, almost all have traditional banking relationships, and often have other retirement savings." 46% earn $100,000 or more per year, and 89% of those who are not retired have retirement savings. 29% earn less than $50,000 per year.
However, such data has been growing since 2 years ago. The number of people choosing to invest in cryptocurrencies is currently increasing, and the number of people that buy Ethereum stable coins is also on the rise, even as its price continues to fall. This shows that people are still looking forward to the day when cryptocurrencies will rebound. However, people need to consider carefully before investing in cryptocurrencies as it is a high-risk investment.
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