ETHER AND ALTCOIN ARE WINNING THE RACE AS TERRA AND DEFI ARE BEHIND
The impact of the collapse of Terra, a blockchain ecosystem that has supported massive public finance testing, has put the already existing building market on dangerous infections this month. As Terra operators unveiled the restructuring plan for a completely new blockchain on Wednesday, investors across DeFi were less optimistic. A glitch in the process of making the Ethereum network have a little extra power to worry about.
"Bearish sentiment remains the theme of cryptos," said Edward Moya, a senior market analyst at Oanda. He noted that Ethereum's growing list of competitors could cause a collapse from an unexpected hit to its update, known as Merge, especially large.
Ether fell 5.3% on Friday in Asia to about $ 1,729, taking this year's loss to 53%. It is far below the $ 2,000 significant target that it needs to trade above intentionally - and soon - if the bearish sentiment subsides. Other tokens linked to popular contracts and split financial projects such as Avalanche, Solana and Polkadot also fell, dropping between 5% and 8% on Friday.
Bitcoin operated as a cover for some sort, slipping around 1.8% after falling to $ 28,007. However, the biggest cryptocurrency currency was cut Thursday from US stocks after undermining price changes on dangerous assets in recent weeks. Stocks continued to rise from the lowest levels during the year.
Demand for blockspace in the Ethereum network has declined sharply since the collapse of Terra, meaning that as a result, the so-called network gas is falling. With the exception of a few spikes during high-profile mining events such as Yuga Labs' Otherside land sale, Glassnode data shows that petrol prices have been declining since December and have recently reached a decline over many years.
Read More: Terra Collapse Causes $ 83 Billion Depression
"Although it was only a one-day data, Solana's NFT volume surpassing Ethereum is a significant contribution to investors' confidence that it will remain a nationally distributed web protocol," added Mati Greenspan, founder of crypto research firm. Quantum Economics. "That being said, the entire crypto market is currently low so we should be tired of making any long-term conclusions from short-term data."
Combined with poor price performance, that is likely to exacerbate the token boom in the short term. DeFi developers are dusting off after Terra's collapse halved the value of the sector, and torn markets will not help reassure them that it is time to return to the game.
The Ethereum beacon chain, which plays a key role in the highly anticipated network technology development, met with a potential security risk called redesign on Wednesday.
"Part of the decline in ETH is due to a reorg problem that could mean a delay in the expected integration time," said Noelle Acheson, head of market data at Genesis Global Trading. When mixed with the context of a large global area, Semant Gabeljic of Pantera said the result was "bad business".
Investors who once burned the grass with crypto have also cooled off their hopes, as the Federal Reserve’s mountaineering regime is causing market turmoil and undermining previously hot growth and speculative assets. Guggenheim Partners Chief Investment Officer Scott Minerd said this week he expects Bitcoin to fall to $ 8,000. He once predicted it could reach $ 400,000.