As the price of cryptocurrency continues to fluctuate on the markets, the question many investors are asking is: is this a correction or a bear market?
Ethereum has a long way to go to match the market cap of Bitcoin, which remains the cryptocurrency world’s most trusted and widely used store of value. But for many onlookers, the ethereum network may be worth even more. Ethereum, of course, is the world’s second-largest cryptocurrency, with its coin price now hovering at over $8,000. As it continues to carve out a niche for itself in the cryptocurrency world, Ethereum has already shown itself to be more than a flash in the pan, as it has survived the market correction in the last week—and is likely to survive the next.
The cryptocurrency market has been going through a roller coaster ride this year, and it didn’t help that Bitcoin’s price dropped by 40% in June. Ethereum too, has been hit by a lot of selling pressure that has resulted in a value drop of 33% at the time of writing. However, even if most investors have been forced to sell, the reality is that a significant portion of them will still manage to hold on to their investment. A survey conducted by CryptoCompare found that only 33.6% of investors had sold off their ETH holdings at an average sell price of $180 at the time of the survey. This means that even if the price falls 30% from the current level, the price drop would not affect more than 75Blockchain indicators show that long-term Ethereum holders are making significant gains despite the market’s free fall to $2100. Even if the price drops below $1000, over 75% of all addresses will still benefit. This is because they have been accumulating ETH at lower price levels, closer to $600-800. Global I/O (according to the channel) shows us that over 10 million addresses bought Ethereum at an average price of $141 and over 50 million owners made a profit. Eighty-five percent of all active addresses remain beneficiaries and about two percent become beneficiaries, leaving only nine percent of ETH holders at a loss. Profit taking by holders is much higher with ETH and most holders are not affected when the market shows extreme volatility. The advent of Defi has allowed Ethereum holders to earn a decent interest rate on their ETH by betting on it with many low 2 protocols. From 28. May, the total value of deposit contracts is about $14 billion, and more than 5 million ETH are used. This figure represents almost 23% of Ethereum’s total supply and is mainly due to high gas costs and the growing popularity of NFT and Defi. Betting is becoming a lucrative service for cryptocurrency exchanges and pays more than just owning an asset. It has been proven that strikers earn between 4% and 34% per quarter. So people who bought ETH for less than $800 would rather bet and get a higher return. The within-chain metrics justify this by demonstrating minimal volume change at addresses of long-term holders. Over a 30-day period, there was only a 0.82% decrease in volume, while the total number of LTH addresses increased by another 2.15%. If we compare the performance of the Ethereum chain with that of other altcoins like Cardano, we see that the percentage of addresses that generate revenue is even higher. With the market losing value, people are increasingly relying on assets like Ethereum and Bitcoin, which is why many continue to hoard at such low prices. Since most of the supply is in stub funds, ETH holders no longer have to worry about daily price fluctuations. Once price reaches its all-time high, we will see most addresses turn green after significant profit taking. Kartikeya Gutta, born and raised in India, is a cryptocurrency journalist and freelance writer for the website itsBlockchain. It covers various aspects of the industry through in-depth analysis and research. His passion for blockchain and the crypto-ecosystem is largely because he believes it can truly change the world and help millions of people.
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Sign up to be notified of the latest posts.For the first time in over a year, the price of Ethereum has dropped below the $200 mark. Many of the major cryptocurrencies are now experiencing similar price drops, as the market continues to consolidate following a recent rally. But fear not! The vast majority of Ethereum holders can rest assured that their holdings will remain in profit even if the price plummets, as 75% of accounts will remain in profits even if the price drops by 75% from its current value.. Read more about ethereum correction may 2023 and let us know what you think.
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