The crypto market has taken a significant hit with Ether (ETH), the second-largest crypto by market capitalization, dropping to its lowest price point since April 9. ETH dropped to $1,833 on Friday afternoon, effectively erasing all the gains it had made from the Shanghai upgrade rally last week, media reports said.
This comes as a surprise to many crypto enthusiasts, as the Shanghai upgrade was touted as a significant milestone in the transitioning the Ethereum blockchain from utilizing a proof-of-work consensus mechanism to adopting a more environmentally friendly proof-of-stake protocol. The upgrade allowed for the withdrawal of $35 billion value of tokens sealed in staking contracts, and ETH began to surge following the event, reaching its most elevated level in 11 months.
However, the recent decline in ETH’s price, which has fallen more than 13% from a Tuesday high of $2,118, is not limited to just the second-largest cryptocurrency. Bitcoin and other digital assets have also suffered, with Bitcoin trading as low as around $27,200 and falling above 10% from a high on Tuesday.
The decline in crypto prices is attributed to several macroeconomic and crypto-industry-focused uncertainties affecting the market. Investors continue to weigh the impact of regulatory changes and global economic conditions, leading to a significant sell-off in the digital asset market.
As the crypto market continues to experience volatility, crypto industry players are looking for ways to develop investment products that can withstand market fluctuations.
Jenny Johnson, the President and CEO of Franklin Templeton, is set to discuss developing crypto-linked investment products in a bear market at the upcoming Consensus 2023 conference. Her insights on the current market conditions and mood among her clients will be valuable to investors looking for ways to navigate the current crypto landscape.
