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Ethereum’s low price provides a discount for anyone long on the Merge

Posted: 22 June 2022 5:15 pm
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The next major step towards Ethereum's highly anticipated network upgrade is set to take place on 29 June.

  • Ethereum is currently down 77% from it's all-time-high value of AUD$7,100.
  • The altcoin's share of the digital asset market has dropped to 14%.
  • Cardano's highly anticipated Vasil upgrade has been pushed back by another month.

Ethereum has continued to stay range-bound between AUD$1,300 and $1,700 over the past week after facing immense volatility since April. The altcoin is now trading at AUD$1,590 while its monthly losses stand at -46%.

The ongoing decline comes amid large sums of capital rapidly exiting the decentralised finance (DeFi) market, which is largely dominated by Ethereum. Since 5 May, the total value locked (TVL) within the DeFi ecosystem has dipped from AUD$296 billion to its current levels of just AUD$104 billion.

Ethereum's bleeding has been compounded by news of many projects (that were making use of either ETH or a staked version of the altcoin such as stETH) facing severe liquidity issues. For example, lending platforms Celsius Network and Babel Finance which actively utilise large sums of ETH as collateral recently froze client withdrawals in light of the ensuing market volatility.

Similarly, crypto hedge fund Three Arrows Capital, which currently has over US$10 billion worth of assets under management, is also facing insolvency.

News of Ethereum's next major upgrade — scheduled for 29 June — has also failed to push the digital asset's value up. This will help the network inch closer to its highly anticipated ETH2.0 Merge.

How to buy Ethereum

Major Cardano update delayed by another month

Input Output Hong Kong (IOHK), the parent firm behind top 10 cryptocurrency Cardano, revealed earlier this week that the project's long-awaited Vasil upgrade has been delayed by yet another month.

Vasil is meant to help improve Cardano's network efficiency and bolster its smart contract capabilities. It was initially set to go live on 29 June but will now be initiated on the last week of July.

As per IOHK's Nigel Hemsley, the proposed upgrade "is extremely close to finalising the core work". However, there are still some bugs that have not been removed completely.

Avalanche loses 45% of its value

Over the last 30-day stretch, Avalanche, a scalability-oriented smart contract platform, has lost 45% of its value, taking its total market cap down by 30%.

Despite the poor showing, the ecosystem continues to remain a popular layer-1 and layer-2 option for many developers, as is highlighted by its large number of smart contract deposits and active addresses.

Disclosure: The author owns a range of cryptocurrencies at the time of writing.

Trying to get a handle on the markets? Cut through the noise with our overview of the best cryptos to buy right now, explore some strategies for how to trade crypto or see if there's a better platform for you with our guide to the best crypto exchanges.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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