ETH crashes 8% in a mid-afternoon dip on Saturday that erased 6% from the crypto’s market capitalization as we can see more in our latest Ethereum news today.
The price of ETH crashes 8% over the past 24hours according to the data from Nomics. Ethereum’s price started dropping earlier and it sank steadily to a price of $2,374 and now its market cap is set at $274 billion. Bitcoin is the biggest crypto with a market cap of $647 billion which dropped by 6.8% in the past day as well whereas Binance Coin dropped by 7.18% to $318.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Cardano also dropped by 10% following the rest of the coins that went in freefall and scratched 4.85% off the global market cap which now sits at $1.59 trillion. The dip erased some of the gains made by Zcash and Monero this morning as well and a few hours ago, they recorded daily gains of close to 30% with the dip trimming almost 8% for Monero and almost 3% for Zcash.
Ethereum’s move along with one of the other cryptos, started after the coin hit an ATH of about $4350 while hours later Tesla and SpaceX CEO Elon Musk slammed Bitcoin’s proof of work mining mechanism as unsound. There major payments associations in China reconfirmed the commitment to a 2017 regulation that banned financial institutions from dealing with crypto which could have something to do with the market crash.
Following the high-energy-consuming attack on Bitcoin mining, Chinese state media began to collectively launch attacks on highly leveraged futures and quoted screenshots of binance future. //t.co/6jqvMLteQC pic.twitter.com/nBkf71vYt3
— Wu Blockchain (@WuBlockchain) May 29, 2021
The news was misreported as a ban on crypto and fueled fears on the crypto market as ETH dropped by 38% during the crash with days later, the state committee of the Chinese government said that BTC mining and trading will be monitored to prevent and control financial risks as ETH dropped to new lows. The crypto-skeptical sentiment from China continued and the local media that is controlled by the Chinese government published criticism on crypto derivatives trading as Colin Wu explained.
As reported recently, Ethereum’s PoS upgrade will decrease the graphic card demand according to NVIDIA reports, with discussions over the future of GPU mining sweeping over the mining community. If EIP-1559 fails to bring down the ETH high transaction costs and drive Ethereum mining obsolete, the move to a proof of stake will most certainly do. While these thoughts are a dime a dozen these days with graphic card manufacturers like Nvidia have yet to address these concerns at least until now.