Ethereum price remains volatile as global equities market plunges further
Popular stock market indices such as the S&P 500, Nasdaq, FTSE and Stoxx 600 have lost more than 15% of their values since the start of 2022.
- Ethereum’s market cap stands at $128 billion while its share of the digital asset sector has risen to 14.2% after stooping to a multi-month low recently.
- The average gas fee for facilitating a transaction on the Ethereum network has slipped to an 18-month low of $1.57.
- The Cardano ecosystem successfully underwent a major network upgrade, referred to as Vasil, this past weekend.
In the last 72 hours, Ethereum (ETH) has stayed range-bound between $1,000 and $1,100. Despite this perceived stability, the asset’s weekly losses stand at -10.8% while trading at $1,064.
Future forecasts remain bleak, with the US stock market recording its weakest first-half performance in over half a century. Since the start of the year, tech-heavy index S&P 500 has fallen by over 20%, while other major indices such as the Dow Jones Industrial Average and Nasdaq composite have lost almost 15% and 30% of their respective values.
Markets across the UK, Asia and mainland Europe have also been gripped by bearish pressure. The UK’s FTSE 250 index, for example, has plummeted by over 20% while Europe’s Stoxx 600 has shed nearly 18% of its value. Lastly, the MSCI index, which is used to assess the performance of the Asia-Pacific market, has lost nearly 19% of its value.
Central banks have been trying to rein in soaring inflation costs, with the price of essential goods including food items and fuel hovering at multi-year highs. Many pundits believe that the US economy is set to go into recession by the end of this year, especially as the Federal Reserve continues to hike interest rates at an unprecedented pace.
Ethereum gas fees dip to lowest levels in over 18 months
One of the largest roadblocks to Ethereum’s mainstream adoption has been its high gas fees. However, amid falling prices, the network’s average transaction fee dipped down to 0.0015 ETH, or $1.57, a figure that was last seen back in December 2020. Between January 2021 and May 2022, this metric continued to hover around $40, reaching an all-time high of approximately $200 on May 1.
These price drops come as the NFT market continues to witness a reduction in its net monetary inflow, with total sales plunging to approximately 19,000 tokens, at an estimated value of $13.8 million, for the month of June, its lowest levels this year.
Cardano ecosystem successfully undergoes major upgrade
The highly anticipated Vasil hardfork has finally gone live on the Cardano testnet after being delayed a few times. The upgrade will see the network inch closer to becoming a reality on the mainnet, promising a wide range of operational advantages. For example, it will allow for a more efficient block creation time, enhanced scalability, reduced costs, improved script performance and maximized interoperability between various Cardano sidechains.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.
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