Amid the broader crypto market collapse and financial turbulence, Ethereum has also been shedding its value in recent days. Following the bandwagon of Bitcoin and other primary tokens, Ethereum dipped to approximately $1,633 last week, its lowest level since July 2021. At the time of writing, the coin is almost 43% down from its recent high of $3500, now wavering around the $2000 mark.
Ethereum is one of the most prominent blockchain platforms in the crypto space, with its native token, Ether (ETH), second only to Bitcoin according to the market capitalization. The network stands out from other cryptocurrencies due to its decentralized finance (DeFi) technology and smart contracts functionality, supporting various dApps, NFTs, and tools.
Ethereum has performed exceptionally well since its launch in 2015 as it ascended from $1 below to around $4,800 at its highest peak last year, manifesting a more than 600,000% surge. Many individuals captured this impressive trend and acquired extensive returns with the help of reputable crypto exchange services. Bitnomics is one such leading crypto platform that maintains a full-featured dashboard and steady functionality, allowing the members to take advantage of the crypto volatility.
Why is Ethereum crashing now?
So, one of the critical questions is: what is causing the Ethereum price to tumble down currently? According to the experts, the unstable global economic conditions and recession fears impact all financial markets, cryptocurrencies being one of them. The surging inflation, geopolitical tensions, spiking interest rates, and tightening crypto regulations have also induced panic among market participants, leading to massive sell-offs.
Secondly, the crypto arena is long being marked by high inherent volatility. Over the whole period since its inception, the coin has faced multiple ups, downs, and sudden outbursts. For instance, in 2021, Ethereum rose to the $4000 zone and crashed from there numerous times. Moreover, since the start of 2022, the cryptocurrency has breached the $3500 level two times till now.
Ethereum vs. Bitcoin – How do these two compare?
The first thing to note is that Bitcoin is just a cryptocurrency. In contrast, Ethereum is a whole platform with smart contracts and DeFi functionalities, powered by a same-named utility token, i.e., Ether or Ethereum. In other words, Bitcoin mainly holds value as a medium of exchange or store of value, but Ethereum is a dynamic network accommodating several projects.
While generally, Bitcoin is considered more stable and established, Ethereum also does not fall behind thanks to its technological components and a versatile DeFi ecosystem. The upcoming Ethereum transition, also termed “The Merge,” is one of the most overriding developments capable of enhancing the appeal and adoption of this project.
Nonetheless, both platforms incorporate a high potential and stand at the top of the crypto universe with a well-built reputation among communities. Also, even though the digital currency market is undergoing a challenging phase, these leading coins hold the inherent capability to rebound from this slump.
To make crypto exchange easier, whether it’s Bitcoin or Ether we are talking about, people can join reliable crypto exchange services providers like Bitnomics and efficiently access the Ethereum and Bitcoin markets. To become a renowned brand in the upcoming years, the platform accommodates a user-friendly design, cutting-edge technology, and top-notch security standards suitable for all.