In the past 24 hours, Ethereum fell 7.6%, falling just below the key $ 3,000 mark. At press time, the cryptocurrency is trading at $ 2,934, according to CoinGecko.
timeline expansion, however, reveals a much more optimistic narrative.
Over the past week, Ethereum has grown 14.9%. Since the local lows on July 20, when the asset was trading at $ 1,734, cryptocurrency number two is up nearly 70%.
se movements can probably be attributed to two key factors.
First, and as usual, Bitcoin also enjoyed a steady rise from similar lows in late July.
At that point, Bitcoin fell below the crucial price of $ 30,000, before rising to $ 45,000 on Sunday afternoon. leading cryptocurrency cooled off today, losing almost 4% in the last 24 hours.
correlation between the two assets is well known: when Bitcoin moves, the rest of the markets follow closely.
For the past 30 days, the correlation between Bitcoin and Ethereum has been high and positive, according to the data aggregator. Cryptowatch.
png »alt =» Green blocks that indicate the correlation between different crypto assets. »Style =» max-width: 100%; overflow: hidden; width: 100% »/> Positively correlated (green) assets normally move together. Source: Cryptowatch
second factor behind the recent rise of Ethereum is the latest network update, called ‘London. On August 5, Ethereum made one of its most anticipated changes which saw the integration of a coin burning functionality.
This integration, formally known as Ethereum Enhancement Proposal (EIP) 1559, now means that some of the fees users pay in ETH to transact will now be destroyed forever or ‘burned’.
integration sparked discussions among enthusiasts that this will be an extremely optimistic event for Ethereum. This is because, at least according to some commentators, the demand for the asset will continue to rise, but as more and more Ethereum is destroyed, there will be a supply restriction.
Read also South Korean regulators abandon jobs for crypto, fintech and finance
Today the network burns badly 1.84 Ethereum per minute or $ 5,378. This is a drastic drop since the update went into effect last week.
Cryptocurrency markets are on hiatus
Bitcoin and Ethereum weren’t the only losers today.
Of the top ten cryptocurrencies by market capitalization, Dogecoin fell the most. popular meme coin is trading at $ 0.23, down 12% in the last 24 hours.
Popular decentralized finance (DeFi) tokens like Uniswap, Chain Link, and Aave hit the skates too.
se tokens decreased by 8.3%, 8.2% and 7.3% respectively.
Disclaimer
views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
Source link
more
