Cryptocurrency assets suddenly withdrew on Monday afternoon, and the price of Ethereum retreated firmly after reaching a record above $4,200.
The price of Bitcoin, the world’s most famous cryptocurrency, has also fallen significantly.
The reason for the fall in value is currently unclear, but digital assets are highly volatile.
Ether is also rapidly catching up to Bitcoin’s market value. The market value of Ethereum is US$481.8 billion, surpassing the combined of Coca-Cola, Snap Inc., and Ford Motor Company. In the cryptocurrency world, Ethereum is second only to Bitcoin’s market value of US$1.1 trillion.
Bitcoin and Ethereum account for approximately 63% of the total market capitalization of all cryptocurrencies.
Cryptocurrencies is gaining more and more attention on Wall Street. It is a hedge against inflation and government-backed currency value fluctuations. PayPal and Square also allow users to buy, sell and hold cryptocurrencies.
Ethereum has gained support from institutional investors.
It has become the cryptocurrency of choice for multimillion-dollar large-scale NFT transactions.
It is built on blockchain technology like Bitcoin, but its proponents do not regard it as a store of value like gold. One of its uses is a decentralized Internet infrastructure, where people can build applications on the Ethereum network.
At the beginning of this year, investment in Ethereum saw strong growth in the next few months. If we purchased Ethereum on January 1, 1,000 US dollars Ethereum purchase at 730.97 US dollars per coin would cost 5,710.85 US dollars now, increasing 471%.
This growth exceeds Bitcoin’s growth in 2021. At Wednesday’s price of $58,359.98, a purchase of $1,000 in Bitcoin would be worth $1,984.13.
This year, dogecoin has grown too. It became the world’s fourth-largest cryptocurrency.
Nevertheless, even after the total price soared by 10,000%, Dogecoin still accounts for less than 3% of the entire cryptocurrency market.