September marked the advent of The Merge, a milestone for Ethereum and the crypto industry. The transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) was ultimately successful. Nevertheless, just a few days after the merger, it is a sad reality check for the second largest cryptocurrency by market capitalization. Its market dominance has reportedly dropped significantly over the past 35 days. Indeed, more than a month ago, this dominance was 19.5%, but the recent report shows a drop to 16.8%.
Ethereum (ETH) in the hard after The Merge?
According to the analyzes of the Ethereum (ETH) market valuation, the asset is experiencing a significant decline. We remember that on August 14, each ETH was worth 1,996 dollars, with a market capitalization of almost 239.74 billion dollars. A figure that allowed him to display a significant domination of the crypto market at 19.5%. While at the same time, the dominance of Bitcoin (BTC) was close to 38.2% for a market capitalization estimated at 470.79 billion dollars.
If the Bitcoin margin remained almost identical in the space of a month, the same cannot be said for Ethereum. The cryptocurrency shows a decline in its market capitalization, it fell from 239 billion dollars to almost 166.64 billion dollars. A loss that logically affects his market dominance which continued to decline to reach 16.8%. The data is even more alarming based solely on the figures of the last 24 hours. We note a regression of ether of 5.8%. This rate even reaches 22.4% if we evaluate the trend of ETH over the last seven days. On the other hand, there is a drop of only 1.4% for bitcoin in 24 hours, which is widening its lead over Ethereum.
A drop of 71.77% since the ATH in November 2021
the cryptocurrency market crosses a particularly difficult year 2022. Despite occasional outbursts, virtually all digital currencies are experiencing an unprecedented bear phase. Bitcoin and ether are certainly the two most palpable examples with losses of more than 50% in the space of a few months.
The success of The Merge could not solve all the problems of the Ethereum ecosystem. Certainly, the merger has brought significant gains, but over the whole year, the losses are approaching 60%. In the last 30 days, the second crypto in terms of market valuation has recorded a drop of 25.4%. Thus, the value of ETH is currently hovering between $1,471 and $1,376 per unit. We are very far from its ATH reached on November 10, 2021 with a value of $4,878 per token. In less than a year, Ethereum experienced a down 71.77%and there is no indication that this figure will improve in the coming weeks.
In short, despite these declining figures, Ethereum continues to have significant dominance in the crypto market, far behind Bitcoin. For illustrative purposes, in 24 hours, there were approximately 58.13 billion swaps traded in the cryptocurrency industry. In these exchanges, $12.17 billion were ETH transactions, or just over 20%.
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