Markets are in the red after regulatory scrutiny targets new version of Ethereum
The new week on the cryptocurrency market got off to a bad start as the market’s biggest assets shed 5% to 10% of their value as a result of cooling after the merger hype and mounting regulatory risks.
Shiba Inu Shines Among Bleeding Assets
As the market faced a massive increase in selling pressure over the past few days, Shiba Inu partially avoided the crash we saw on large assets over the weekend and started the week with a slight increase in prices. price by 1.2% in the last 24 hours.
Unfortunately, the long-term picture for SHIB has not changed yet, and the asset is still moving below critical support levels that should be the basis for a future rally, which will not be possible until the token gains a foothold above the level price of $0.000012.
Market capitalization dips below $900 billion
Due to the correction caused by the news sell-off event and the emergence of regulatory discussions around Ethereum, investors began to panic and sell their holdings, dragging the total market capitalization of the crypto- currency below the $900 billion threshold at any given time.
The biggest loss was suffered by Ethereum, whose capitalization plunged to $157 billion from over $210 billion before the weekend trading session. Such a sudden and rapid increase in selling pressure could not go unnoticed as the lack of liquidity in the market over the weekend caused prices to drop noticeably.
The biggest market losers are Tied to Ethereum cryptocurrencies that saw steady inflows of funds before the merger as miners slowly shifted their hashing power to alternative networks.
Ethereum Classic, for example, lost more than 13% of its value in the last 24 hours – the main reason being the strong competition between Ethereum PoW alternatives. The Ethereum PoW fork is also rapidly losing value as investors see no future and no fundamental value in the Ether PoW offspring.
Ethereum and Bitcoin maxis fight again
The Merge update on Ethereum sparked discussions on the old topic: Which network is more centralized: Ethereum or Bitcoin? While Ether and BTC maxes ignore each other, issuance on both networks is controlled by a number of entities that you can rely on for one thing.
Unlike Ethereum, Bitcoin’s hashrate is almost equally controlled by five entities that own 20% to 10% of the network’s total computing power. In the past 24 hours, most blocks have been issued by just two pools: Antpool and Foundry.
Despite all the arguments of pro-PoS cryptocurrency users, the distribution of Ethereum on the network does not seem healthier compared to Bitcoin, as only two companies control nearly 50% of all ETH staked. Lido Finance, the largest Ethereum 2.0 holder, has an impressive 30% stake in the network, while second place held by Coinbase is 14% of the network’s hashrate.