Ethereum’s price tumbles as more Chinese mining pools close shop
Despite yesterday’s dip, Ethereum’s weekly gains still stand over 6%.
- Two of Ethereum’s largest mining pool operators have been forced to shut down due to China’s ongoing crypto crackdown.
- As a result of the ongoing volatility, the total market capitalization of the digital asset industry has once again slipped below the $2 trillion mark.
- A transition to ETH 2.0 seems to be looming large on the horizon, with another main-net upgrade – titled “Altair” – all set to go live by next month’s end.
After seemingly having mounted a comeback of sorts a little over 48 hours ago, Ethereum (ETH) is once again in the grips of massive bearish pressure, with the altcoin currently hovering well below its all-important $3,000 psychological threshold. At press time, ETH is trading for $2,988.
Over the last few months, Ethereum has continued to follow closely in Bitcoin’s footsteps price-wise. This was made evident last night when both assets fell in unison, despite having shown increasing signs of de-coupling earlier this year and during Q4 2020.
The dip could also have been spurred by news from BeePool. As the fourth-largest Ethereum mining pool in the world, it announced its closure amid China’s ongoing crypto crackdown, which has seen a cleanse of its entire digital-asset industry.
The news comes in the wake of another similar incident. SparkPool, the second-largest Ethereum mining pool, released a statement revealing that it was going to suspend all its existing operations by September’s end due to the Chinese government’s ongoing impositions.
At the time of writing, BeePool and SparkPool contribute more than 25% of Ethereum’s entire network hashrate.
ETH 2.0 inches towards final deployment
Even as Ethereum’s high transaction fee rates continue to make the airwaves, it appears as though the network is moving closer to its all-important proof-of-stake (PoS) transition, with the ecosystem all set to undergo certain modifications over the coming few weeks. Labeled “Altair,” the upcoming upgrade is set to commence at epoch 74240 or roughly October 27.
According to Ethereum Foundation researcher Danny Ryan, the upgrade will entail the following:
“This upgrade brings light-client support to the core consensus, cleans up beacon state incentive accounting, fixes some issues with validator incentives, and steps up the punitive params as per EIP-2982.”
Ethereum Improvement Proposal (EIP-2982) will usher in certain punitive parameters designed to ensure that the network’s PoS framework is always economically bolstered and secure. Additionally, the update will also seek to introduce certain penalties such as an “inactivity leak” and “slashing” into the mix.
As part of a recent media appearance, Joseph Lubin, head of popular blockchain firm ConsenSys and the co-founder of Ethereum, was quoted as saying that as and when the Ethereum network can realize its scalability dream, the asset will transform into “ultrasound money” – an asset not susceptible to sudden drops in value or purchasing power. Thus, it will be interesting to see how the coming few months play out for ETH.
Disclosure: The author owns a range of cryptocurrencies at the time of writing