Aggressive selling has caused millions of dollars to be wiped out from the valuation of the cryptocurrency, while its overall price has fallen.
Ethereum, the second most valuable currency on the market after bitcoin, has experienced a sharp drop in value following an aggressive sell-off by investors.
Over the weekend, the value of ethereum plunged 15 percent in just two days, to $ 1,661 ($ 2,347), the lowest level since March 2021.
It’s an even bigger drop compared to the November price, with the cryptocurrency dropping 75 percent from its record high of $ 4,878 ($ 6,893).
Analysts said that at least $ 200 million ($ 282 million) of ethereum was sold in just one day and that it fell 25 percent in just one month.
All 10 major cryptocurrencies fell by at least 3 percent last week, except for the cardano, which has risen 6 percent during the week, according to CoinMarketCap data.
Ethereum currently has a market capitalization of $ 184 billion ($ 260 billion), which is down 8.9 percent.
But there is more pain for investors according to a well-known cryptocurrency skeptic after the market crash.
David Gerard, author of Attack of the 50 Foot Blockchain, told Nine’s 60 minutes he was concerned about the lack of regulation in the industry, where celebrity endorsements like NBA star LeBron James had created a market full of manipulation, scammers and scammers.
“Everyone loves the siren of a rising number and they think, this is my chance,” he said.
“[But] we need to think about the real victims, the mothers and fathers, the grandmothers who think their retirement should go in crypto. There is a real human cost here and these are the normal people who are scammed. You can’t get rich for free. It would be thought that this was obvious, but people are still waiting for a way out and they will come out ahead, but it is always a false hope. Some people do it very well, but more people are absolutely devastated. “
He warned that much of the cryptographic industry had become a dangerous cult.
“Most of the volume, the way the market works, the way prices are set, it all happens in a completely, literally unregulated environment,” he said.
“This fall has really made it clear to people that, in fact, the music will stop at some point. People who have bought it in the last six months are basically going to be stuck with magic beans and are trying to figure it out. How to download them. Many of them will have to receive the blow and it will not be pleasant “.
The cryptocurrency market suffered one of its biggest crashes last month after the complete collapse of two of the most popular and supposedly “stable” currencies, land and its sister token moon.
– with Frank Chung