- ETH’s worth fared significantly better than different layer-1 altcoins this yr.
- SOL suffered essentially the most decline in worth.
On a year-to-date foundation, the worth of main altcoin Ethereum [ETH] fared better than different layer-1 altcoins (Alt L1s), together with Solana [SOL], Near [NEAR], and Avalanche [AVAX], a brand new report revealed.
The cryptocurrency market has skilled a major downturn in latest months, with a complete lack of over $1.4 trillion in worth. This decline has been attributed to a spread of points inside the trade, together with failed tasks and a scarcity of liquidity.
In addition, the autumn of FTX, a serious participant available in the market, has additionally contributed to the general decline.
Read Ethereum’s [ETH] Price Prediction 2023-2024
According to the report, previous to the transition of Ethereum to a proof-of-stake (POS) consensus mechanism, the unfold between ETH and Alt L1s had already begun to widen. This divergence turned extra vital following the Merge.
ETH and its friends
Exchanging palms at $1,194.62, ETH’s worth has fallen by 67% since January, information from CoinMarketCap confirmed. Of the Alt L1s listed above, SOL has suffered essentially the most decline, with a 94% drop in its worth.
The latest controversy surrounding Solana and its ties to disgraced-founder Sam Bankman-Fried has additionally contributed to a lower in SOL’s worth. In addition, previously week, the community noticed main NFT tasks announce their intentions emigrate to Ethereum and Polygon, all of which have introduced Solana’s longevity into query.
As for NEAR, it has misplaced 90% of its worth because the yr began. There are, nevertheless, a collection of upgrades to the Near Protocol within the coming yr that many anticipate will result in a rally in NEAR’s worth.
Meanwhile, AVAX traded at $11.24 at press time, having declined by 89% because the yr began.
How a lot Ethereum are you able to get for $1?
Thanks to PoS
According to the report, ETH fared significantly better than different Alt L1s, primarily on account of Ethereum’s profitable migration to a PoS consensus mechanism on 15 September.
It was famous that essentially the most notable affect of the swap to PoS for Ethereum was the change in ETH’s provide dynamics. After the Merge, ETH’s provide inflated by solely 3,800, in comparison with the 1.2 million inflation that may have occurred if the community had continued to function underneath Proof-of-work (PoW) consensus. In this regard, Blockworks Research discovered,
“In other words, over $1.5B of sell pressure has been removed from the market as a result of the Merge in under just four months,”