CRYPTO NEWS

Another Crypto Crash? Bitcoin falls below $20,000, what’s next?

Crypto prices have been falling for weeks. Today, prices dropped again significantly. Bitcoin price is currently below $20,000 per coin. Ethereum has even fallen below 1,000 euros. Due to the losses of the two biggest cryptos, most altcoins also lost massively in value. Cardano is currently below 50 dollar cents, Solana fell by almost 20% to below 30 dollars at times.

The massive crash over the past few days has caused the overall crypto industry market cap to fall below the $1 trillion mark. But what do the losses mean for the overall market?

Crypto Crash Reasons

The main reason for the losses is probably the persistently high inflation, which is at a consistently high level in most industrialized countries. In addition to a loss of purchasing power, such high inflation causes economic problems, such as a lack of consumer demand.

The future of cryptos – Not shiny anymore?

In addition, fighting inflation in the capital market is feared. The US Federal Reserve is currently fighting high inflation with a radical interest rate policy, which is leading to less money on the market and making risky investments such as cryptocurrencies less attractive.

BIG Concerns in the Crypto market

The turmoil in the market is currently causing more and more problems for some crypto projects and companies. The crypto lending company Celsius announced that it would pause all transactions. The reason is the “extreme market conditions”.Crash situations such as the failure of the stable coin Luna, which had to lose 99% of its value, are currently causing a massive loss of trust in the crypto market.Meanwhile, the falling prices are causing further problems. Mining activities become much less attractive when crypto prices are low. Due to the currently low prices (with high energy costs), mining is no longer worthwhile in many parts of the world.

The consequences of the crisis

The consequences of the massive price losses are existential risks for the crypto industry. Above all, however, is the loss of trust that cryptocurrencies are currently suffering. Due to the enormously falling prices, the trust of many in the ideas, innovations and projects that are currently taking place on the blockchain is disappearing. The consequences are large-scale capital deductions. The currencies themselves are suffering as a result, but not least also listed companies. Coinbase has already announced a hiring freeze to get through the crypto winter.

How will the crash end?

Currently, a turnaround in the crypto market only seems to be accompanied by falling inflation and stable economic data. As a result, tech stocks would rise first. Cryptocurrencies would likely lag behind rising tech stock prices. The reason for this is the flow of money. Tech and crypto investors are usually similarly positioned and usually invest in both industries. Since stocks are initially likely to promise more returns in a recovery phase, the cash flows would probably first flow into the “safer” investment before the crypto prices would also rise significantly again.

Are Cryptocurrencies dead?

Even if the prices of almost all cryptocurrencies are clearly underwater in 2022, this does not mean the end of the crypto world. Progress and innovation will continue to develop and can only be restricted by strict regulators. Cryptocurrencies, like company shares, will survive the crash and thrive again after the “crypto winter”. However, it is also clear that not every coin will survive. In particular, scam coins and fun currencies could not survive the crypto winter. However, such readings are important in order to be able to form a serious and profitable crypto market in the future.

Ethereum Name Service Sells for Second-Highest Price Ever of 300 ETH

Ethereum Name Service (ENS) domain 000.eth was sold for 300 ETH, roughly $315,000, on 3rd July. This marked the second-largest purchase denominated not just in Ether but also in terms of US Dollars. Record-Breaking Sale On-chain data revealed that the ENS name was sold by a user called EtheOS on the OpenSea marketplace who had::Listen

Ethereum Name Service (ENS) domain 000.eth was sold for 300 ETH, roughly $315,000, on 3rd July. This marked the second-largest purchase denominated not just in Ether but also in terms of US Dollars.

Record-Breaking Sale

On-chain data revealed that the ENS name was sold by a user called EtheOS on the OpenSea marketplace who had received it in June 2020.

The ENS name was first listed for 100 ETH in September 2021, then valued at around $300,000. The user re-listed the name in January this year for 500 ETH and once again in March. The offer was listed for three months before being accepted. The latest sale stands second to the highest sale of 420 ETH of another ENS name – paradigm.eth – last October. It was valued at approximately $1.5 million at that time.

For the uninitiated Ethereum Name Service, also known as ENS, is a protocol that links machine-generated codes to human-friendly names. It is Web3-friendly, open, decentralized, and not-for-profit naming system powered by the Ethereum blockchain. ENS’ domain names are secured via smart contracts.

These names are also NFTs and can be sold on popular marketplaces such as OpenSea. According to stats, ENS is one of the most widely integrated naming standards with over 1.1 million names, 504 integrations, and over 400k owners.

Ethereum Naming System (ENS) has gained widespread adoption lately. Many prominent personalities, including Ethereum co-founder Vitalik Buterin, Coinbase’s Brian Armstrong, Shopify CEO Tobias Lütke, and Reddit co-founder Alexis Ohanian have added the .ETH extension to their names. Even popular A-listers such as Jimmy Fallon, Paris Hilton, and Snoop Dogg have acquired Web3 identities on Ethereum.

Mystery Behind paradigm.eth

Last year, an unknown wallet bought the Ethereum domain name – paradigm.eth – for 420 ETH (around $1.5 million). Initially, many believed that crypto-dedicated VC giant Paradigm was behind the expensive purchase. However, it denied those reports.

Crypto firm, Blockchain.com also announced that it will allow its users to claim free “.blockchain” domain names supported by Unstoppable Domains in June 2021 as a potential challenge to Ethereum Name Service.

More recently, the Open Network (TON) Foundation launched a new service – TON DNS – to enable users to assign human-readable names to crypto wallets, smart contracts, and websites.

Another Crypto Crash? Bitcoin falls below $20,000, what’s next?

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