And just like that! We are back! Ethereum’s price touched $2,500 on Monday May 24th, after the brutal sell-off last week that sent the second-largest cryptocurrency below $1,750. Elon Musk’s tweet about cryptocurrency energy consumption could be one of the culprits that crashed the entire crypto market.
Ethereum started the process of moving from its original proof-of-work concept to a consensus mechanism called proof-of-stake (PoS) to cut its energy consumption. The transition, known as Ethereum 2.0, will cut the energy use of the currency by a significant margin amid pressure on Bitcoin and other cryptos over their environmental impact.
Some market influencers such as eToro’s Heloise Greeff has stated that Ethereum is still a good buy compared to leading cryptocurrencies such as the Bitcoin. With its commitment to cut down energy use, the future for Ethereum seems promising. However, it is still pure speculation at this point with only fundamental architecture being on the table and no real proof. That, combined with the historical nature of cryptocurrency volatility, we can assume that the wild roller-coaster ride will continue. At the end of the day, a single tweet can give us round 2.
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