Ethereum price crashes by 13% as US central bank hints at stimulus tapering

Posted: 7 January 2022 1:39 am
ETH 01-09 1800x1000

Borrowing rates could soon soar well above their near-zero levels over the next couple of months.

  • Ethereum is currently showcasing yearly gains of over 170%, a figure that is substantially lower than a host of other altcoins, including SOL, ADA, TERRA, AVA and MATIC.
  • The total sale of non-fungible tokens (NFTs) via the Polygon Network’s native marketplace recently touched an all-time high.
  • Ethereum’s market dominance index (DI) has dipped to 18% after breaching the 20% mark around a week ago.

In line with the market-wide dip witnessed since January 6, Ethereum (ETH) continues to slide. The digital asset’s value dropped by a staggering 12% over the past week. At press time, ETH is trading at $3,095.

The dip came soon after the Federal Reserve issued the minutes of its most recent meeting wherein members discussed the possibility of hiking interest rates earlier than initially envisioned. The Federal Open Market Committee (FOMC) may be looking to hike short-term interest levels as early as March.

Despite Ethereum’s ongoing volatility woes, the altcoin has registered sizeable gains in excess of 170% over the last 12-month stretch, vastly outperforming Bitcoin. The flagship crypto accrued profits of just 16% over the same duration.

Other altcoins that have seen massive surges over the past year include Solana (7,500%), Cardano (260%), Terra (10,000%), Avalanche (1,900%) and Polygon (5,700%).

How to buy Ethereum

Dapper Labs registers with the US government

As per a public filing disclosed by Dapper Labs on January 3, the Canadian firm became the world’s first NFT-centric mainstream entity to federally register to lobby with the US government. Dapper Labs currently offers a wide range of NFTs as well as decentralized applications (dApps) such as CryptoKitties and Cheeze Wizards.

In 2020, the company also entered into a long-term agreement with the National Basketball Association (NBA) to help facilitate the sale of various novel NFTs — of moments such as in-game dunks, 3-pointers and more — via its Top Shot platform. The company has also partnered with the world’s faster-growing sports organization, the UFC, to launch a similar service sometime this year.

Polygon network continues to expand rapidly

Despite the crypto industry receiving a lot of turbulence over the last couple of weeks, Polygon’s NFT market has attracted a growing list of users. Numbers-wise, the total sale of NFTs via the layer 2 protocol climbed to its all-time high last month at around 2 million non-fungible tokens sold.

As per data available online, these figures represent a whopping 60% increase in comparison to numbers registered just a couple of months ago. In fact, Polygon’s rise over the past year has been nothing short of meteoric. The ecosystem now hosts a total of more than 3,000 decentralized applications while possessing a total value locked (TVL) of around $3.8 billion.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

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

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. 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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