The ongoing market correction is causing new records to be set in the crypto industry, albeit on the bearish side. Ethereum (ETH), the world’s second largest digital currency by market capitalization, has seen its meteoric rise to a new all-time high (ATH), which is shortened by downward spirals in the chain.
according to According to Glassnode Analytics, the number of Ethereum investors holding at least 100 coins has just hit a 3-year low of 42,928.
The specific decline in investor sentiment towards Ethereum was due to the broader market grappling with news of uncertainty across the board. Asian giant China where the bulk of the Bitcoin and crypto mining activities are taking place, has swung the big stick with a firm stance that miners can see sent away. This move is preceded by the ban on crypto activities for the country’s financial institutions.
Affected thought leaders in the cryptocurrency ecosystem have raised concerns about the energy consumption of digital assets generated by mining. Since most of this activity is coal-fired, environmental sustainability concerns may be influencing Chinese regulators to rid their coasts of miners’ activities.
The current Ethereum blockchain is based on the PoW (Proof-of-Work) model. Hence, the mining concerns are valid. However, the market is responding to a more pervasive bearish sentiment that is not offloading any digital currencies or tokens. At the time of writing, Ethereum was trading at $ 2,215.57, up 0.41% over the past 24 hours after reducing some of the losses accumulated over the weekend.
With the big coin holders giving away their coins, the price of Ether has dropped massively from the ATH of $ 4,362.35 set earlier this month. Subject to a consistent rebound in the global cryptocurrency market, Ethereum will look forward to renewed investor interest as well as the upcoming upgrade from London Hardfork or EIP 1559 to fuel a sweeping rebound.
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