Current Ethereum value on August 2:
The global cryptocurrency market is currently experiencing a challenging period, with some analysts predicting this downturn could last up to 1.5 years. This gloomy forecast was highlighted in a recent report by BBC journalist Cecilia Barría titled "Crypto Winter: Key to Understanding the Global Fall of Cryptocurrencies."
Amidst this market volatility, Ethereum, the second-largest cryptocurrency by market capitalization, continues to hold its ground. Created by Russian-Canadian Vitalik Buterin in 2015, Ethereum is an open-source, decentralized platform that runs on its own blockchain. It allows developers to program new types of applications and stands out for being the first to include programmable smart contracts in its blocks, culminating in the creation of the ERC-20 network, a blockchain with embedded smart contracts under the Singularity programming language.
Ethereum's current market capitalization stands at a staggering US$401,677,491,008, and the digital currency is currently trading at US$3412.22, representing a 3.3% increase over the past 24 hours and a 9.14% rise compared to the same day last week.
The ups and downs in the cryptocurrency market can be frantic due to their decentralized nature and lack of regulation. Unlike stocks, cryptocurrencies are not regulated, issued, or held by banks. The movement of cryptocurrencies is determined by the basic rule of supply and demand.
The ongoing crypto winter is driven by multiple factors, including market psychology, regulatory uncertainty, liquidity crises like the collapse of FTX, and technical patterns intrinsic to cryptocurrencies such as Bitcoin’s halving cycle. For top cryptocurrencies like Ethereum, these factors lead to prolonged bearish phases that can last several years before a new bullish cycle emerges.
Historically, crypto winters last between 1 to 3 years, depending on external macroeconomic factors and the timing of Bitcoin halving events. Given Bitcoin’s halving occurs every four years and the last one took place in 2020, a bullish phase could reasonably be expected around or after the next halving, potentially in 2024-2025. Some analysts predict Bitcoin and Ethereum will start recovering and potentially reach new highs by 2025, but this depends heavily on how regulatory, technological, and macroeconomic factors evolve.
In summary, the current crypto winter results from a combination of inherent cyclical market behavior, regulatory and liquidity shocks like the FTX collapse, and overall market sentiment. Top cryptocurrencies like Ethereum are expected to remain in this bearish cycle until around the time of the next Bitcoin halving or until positive regulatory clarity and market conditions improve, potentially leading to recovery phases emerging in 2025 or later.
Despite the ongoing crypto winter and the challenging period in the global cryptocurrency market, news about technology advancements in Ethereum continue to emerge. For instance, Ethereum's ERC-20 network, a blockchain with embedded smart contracts under the Singularity programming language, is a testament to the continuous evolution in technology within this cryptocurrency.
