In a world of Ethereum networks, an indigenous cryptocurrency ether needs no extra special introduction. Stands in the second most popular digital currency position today after Bitcoin, it inevitably has attracted the interest of a massive number of investors. However, last year ETH wasn’t able to hold up a good range, but on the positive side, it remained in the same position in the market cap.
According to the marketers, Ethereum has been harder hit by the global pandemic waves, Covid-19. Since the beginning, the second most valuable cryptocurrency was traded on IG with 61.24% down from February’s highs of over US$285 (as the data mentioned in the recent 18 March). Regardless of the growing competition in the crypto market, Ethereum remains a dynamic technology with the power to change the trends completely and more is built on top of the smart contract focused protocol.
In January 2020, WHO declared the first report of coronavirus outside of China, and by 11 February, it was afflicted as COVID-19 pandemic to the world. Shortly after the alarming announcement, the broader section of digital currency markets bears the declining status, losing more than half of its value between mid-February and March. Even in the beginning of February, the world’s top leading digital currency by market capitalization has occurred with the biggest drop of the year,( from above US$10,400 on 13 February, to less than US$4,120 on 12 March).
Whereas the next affecting currency is none other than the second-largest digital asset, Ether suffered huge declines, too. In between February to March, Ether falls for more than 66% in just a month, according to researchers of CoinMarketCap. Taking each top-ranking currencies down to its lowest level, even XRP, digital token utilized by Ripple network, has been seen with the similar loss in the value of approximately 66% during the same period. With the proclamation of Covid-19 entered into the world, affecting both large and small businesses in the world, the stock and digital currencies dwell in the same direction as they fell in their values. However, in recent times the relationship is likely to be broken down with the increase in the value of Bitcoin, showing the sharp gains in the digital currency market, whereas stocks still failed to rally in the market.
While over the last four months, the digital market has been highly volatile, cryptocurrency trading has seen an incredible boost, first as a result of the rising tensions between Iran and the U.S and ultimately the covid-19 outbreak added more chaos than before. Major cryptocurrencies such as Ripple’s XRP, Ethereum, and Bitcoin Cash made significant price gains as more involvement of interested investors returned their capital into digital assets. However, cryptocurrency becomes an appealing deal as the ‘safe haven’ asset in the pandemic times. Even now, the full impact of the Covid-19 outbreak has yet to be felt by both crypto and traditional financial markets. But the rising number of digital exchanges and transactions reveals the certainty of recovery. Also, the on-going predictions unwrap the statement, that cryptocurrency digital assets are likely to stay for a longer run.