Morgan Stanley says changing to Proof of Stake might not solve Ethereum's scaling problems. An equity strategist for Morgan Stanley claims Ethereum beacon-mainnet merge will cause demand for graphics processors to plummet in the coming months. The Ethereum platform has been undergoing a parade of testnets preparing for its merge with Beacon Chain. This merge is a move to facilitate the blockchain's transition from operating a Proof of Work model, to Proof of Stake. The PoW consensus model understandably…
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $1,122 trillion.
- Bitcoin trades at around $28,000 after a 6% loss this week.
- Ethereum lost almost 15% of its value over the past seven days.
- XRP dropped by nearly 8% this past week.
- Almost all altcoins are trading in the red, with very few exceptions.
- The DeFi sector lost over $8 billion from the total value protocols (TVL), now standing at nearly $46.11 billion.
Crypto Trends 06th – 12th of June, 2022: Market Analysis and Performance
The crypto market was showing signs of recovery last week. Unfortunately, it was only a silver lining in the crypto industry’s endless dark and cloudy sky. In fact, things are looking worse today than they did two weeks ago. For instance, the overall market capitalization dropped by over $100 billion, and most digital assets record two-digit losses.
Bitcoin failed to maintain the $30,000 level it had reached only seven days ago. Moreover, the king coin is experiencing a free fall following the Lummis-Gillibrand Crypto Bill. Most Bitcoiners are opposing the document. However, its negative impact is clearly visible across the entire crypto market. At the time of writing, BTC was trading at $28,100 and experiencing severe volatility.
Ethereum is back to its 2018 pre-bull run values after a 15% loss this week. The second crypto in command benefitted from a slight mid-week boost deriving from the Ethereum developers’ success in merging PoS to Ropsten’s testnet. Sadly, it wasn’t enough to help it gain more luster in the market. Currently, ETH is trading at $1,500 and dropping. We might see it soon below the $1k level if Ethereum continues to lose support.
Altcoins & DeFi
Elsewhere, most altcoins are trading in the red. For example, Solana dropped by over 14%, Cardano is down by 4%, and Dogecoin lost 17% of its value. Moreover, Avalanche is down by 23%, XRP lost 8%, and Aave dropped by no less than 27%.
The Metaverse sector is not faring any better either. For instance, Decentraland is down by almost 11%, and Axie Infinity dropped by 21%. Similarly, ApeCoin continues to lose supporters following a 28% value loss. The same goes for The Sandbox, down by 20% this week.
Crypto Market Analysis – What’s in the News?
- EU is close to sealing the deal on the MiCA Regulatory Framework.
- Sweden’s Central Bank wants to ban Bitcoin’s Proof-of-Work mechanism.
- The hacker who stole Optimism funds returned $15M and sent $1M OP to Ethereum co-founder Vitalik Buterin.
Next Week’s Crypto Market Forecast
The crypto market needs a bull run to take its main assets back in the green. Unfortunately, that much-anticipated event is now unlikely as various governments look into regulating and subduing cryptocurrencies. Also, the alarming increase of crypto hacks and failed projects shuns an unflattering light on the entire industry. Nevertheless, reliable projects appear in the market every day, showing that the future is not as bleak as some would have you believe.