Ethereum’s price reflects market sentiment in general with no immediate respite in sight
ETH's ongoing downtrend comes at a time when crypto exchange LCX revealed that one of its Ethereum wallets had been hacked.
- Ethereum's annual gains have dipped to under the 150% mark.
- The altcoin's market dominance index (DI) currently stands at just over 18%.
- PayPal recently revealed that it is actively working on the release of its very own stablecoin offering – PayPal Coin – in the near-to-mid term.
Staying in line with the general trend of the market, Ethereum, the world's second-largest cryptocurrency by total market capitalisation, has been faced with growing price uncertainty – losing more than 22% of its value over the past fortnight. At press time, ETH is trading at a price point of AUD$4,400.
This ongoing price dip comes in the wake of Liechtenstein-based crypto exchange LCX revealing that one of its ETH-based hot wallets had been compromised to a tune of US$6.8 million, resulting in the firm suspending all deposits and withdrawals from the account (for the time being). To elaborate, the incident was first brought to light by blockchain security firm PeckShield whose researchers revealed a suspicious transfer of ERC-20 tokens from LCX to an unknown Ethereum-based crypto storage address on 9 January.
In spite of all the volatility, a growing list of mainstream entities have continued to adopt and explore various facets of this fast-evolving industry. American payments giant PayPal confirmed that it is looking to release its very own stablecoin PayPal Coin sometime in the near future.
PayPal's VP for crypto and digital assets Jose Fernandez da Ponte was quoted as saying: "We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators."
In addition to its proposed stablecoin offering, it is worth noting that over the last couple of years, PayPal has been working quite actively to help provide its users with a wide range of crypto-related services (including custody, buy/sell options, etc) across the United States as well as certain other parts of the world, including Europe.
Ethereum interoperability on the rise
A number of crypto assets operating out of the Cosmos ecosystem, including IRISnet, Secret, Akash Network and the platform's native offering ATOM, have continued to surge despite the market being engulfed by a largely bearish mood, accruing profits of 65%, 16%, 13% and 11% respectively. Their bullish momentum comes in anticipation of their proposed Ethereum interoperability via a bridging platform called Evmos.
The above-stated price action has failed to help spur positive investor sentiment in any sort of tangible manner, with the total market capitalisation of the crypto sector dipping to just under the $2 trillion mark yesterday, albeit briefly. It should be noted that since 8 November, the net worth of the industry has dropped by a whopping 33%.
Disclosure: The author owns a range of cryptocurrencies at the time of writing