At the beginning of September, there was a massive drop in the prices in the crypto industry at large, but it seems that there is a silver lining here. As Ethereum’s price saw a drop of 30%, it brought about the birth of 68 new Ethereum whales who have now joined the network. This has the potential of adding millions to the network in the form of holdings. Crypto analysts had put the data together, which showed that the number of investors who are holding anywhere between 1,000 and 10,000 Ethereum (ETH) saw an increase of a minimum of 68. This happened over the course of three days, starting from 31st August, 2020.
The number of investors went up when Ethereum’s price experienced a massive decline and reached a value of $326 on September 5th. This was exactly 30.2% less than its value on August 31st, 2020. Since June, the rampant growth of the DeFi market had inadvertently begun to double down on the steady demand for Ethereum. Due to this huge increase in traffic in the market, there has been a significant increase in gas costs as well. As a result, on September 1st, new highs of 485 Gwi were reached and there was only an increase in the number of daily transactions.
Currently, the gas price has reached a low of 98 Gwi, which makes it manageable, and this has only happened because of the massive drop in price, coupled with an 88% decline in projects, such as SUSHI. However, it should be noted that the catastrophic market drop experienced by SushiSwap was primarily due to its founder, Chef Nomi. He decided to sell his holdings in the company to Sam ‘SBF’ Bankman-Fried on September 6th and this unexpected takeover drove down the market price. This was just when the SUSHI token saw its catastrophic fall in price.
Nonetheless, the price drop for SushiSwap didn’t last for long because the company is now in the hands of a reliable and renowned name of SBF. Since Ethereum is the second-largest cryptocurrency in terms of market capitalization, it does enjoy a couple of perks. It stands at $39.7 billion and Ether is considered almost as much as, if not completely, reliable as Bitcoin. Both BTC and ETH saw their prices drop together as the crypto market collapsed. Hence, if these two market leaders went down, it wasn’t surprising to know that every other stablecoin also went down, with only a handful of exceptions.
The only contender that can give any competition to Ethereum or Bitcoin is Tether (USDT), which currently has a market value of a whopping $14.1 billion. It should be noted that Tether had made a recent addition to this market value quite recently. On September 1st, 2020, they had pumped approximately $3 billion in liquidity of this stablecoin. The increased number in whales in regard to Ethereum does bode well for the cryptocurrency and could work in its favor in the future, as it would certainly increase its value significantly.
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