Crypto Market Review, September 19
Markets are in the red after regulatory oversight targets new version of Ethereum
The new week in the cryptocurrency market got off to a bad start as the biggest assets on the market lose from 5% to 10% of their values following the cooling off of the merger hype and rising regulatory risks.
Shiba Inu shines amid bleeding assets
With the market facing a massive increase in selling pressure over the past few days, the Shiba Inu partially avoided the crash we saw in major assets over the weekend and began the week with a mild price increase of 1.2% over the past 24 hours.
Unfortunately, the long-term picture for SHIB has not changed yet, and the asset is still moving below the critical support levels that should serve as the basis for a future rally, which will not be possible until the token gets a foothold above the $0.000012 price level.
The market value plunges below 900 billion dollars
Due to the correction caused by the selling of the news event and the appearance of regulatory discussions surrounding Ethereum, investors began to panic and sell their holdings, dragging the total cryptocurrency market cap below the $900 billion threshold at one point.
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The biggest loss has been taken by Ethereum, whose capitalization increased to $157 billion from more than $210 billion before the weekend trading session. Such a sudden and rapid increase in selling pressure could not go unnoticed, as the lack of liquidity in the market over the weekend led to the remarkable drop in prices.
The biggest losers in the market are Ethereum-related cryptocurrencies which have seen a constant influx of funds ahead of the merger as miners slowly shifted their hashing power towards alternative networks.
Ethereum Classic, for example, has lost more than 13% of its value in the last 24 hours – the main reason being the high competition between Ethereum PoW alternatives. Ethereum’s PoW fork is also losing its value quickly as investors see no future and no fundamental value in Ether’s PoW offspring.
Ethereum and Bitcoin maxis battle again
The Merge update on Ethereum sparked discussions on the age-old topic: which network is more centralized: Ethereum or Bitcoin? While both Ether and BTC maxis shrug off each other, issuance on the two networks is controlled by a number of entities you can count on one hand.
Unlike Ethereum, Bitcoin’s hashrate is almost equally controlled by five entities that have from 20% to 10% of the network’s total computing power. In the last 24 hours, the most blocks have been issued by only two pools: Antpool and Foundry.
Despite all the arguments of pro-PoS cryptocurrency users, Ethereum’s distribution on the network does not seem healthier compared to Bitcoin, as only two companies control almost 50% of all staked ETH. Lido Finance, the largest holder in Ethereum 2.0 has an impressive 30% stake in the network, while second place held by Coinbase corresponds to 14% of the network’s hashrate.
