Bitcoin and Ethereum, the biggest cryptocurrencies by market capitalization, have seen their values continue to drop during the weekend as the crypto market crash continues, reaching their lowest values in months.
During the weekend, Ethereum experienced a drop of almost 25% when its value went from $2454 to as low as $1853 in early Sunday, going under the $2000 threshold for the first time since April 1st according to CoinGecko data.
On the other hand, Bitcoin experienced a similar trend when its value reached $31390 on Sunday, after having started the weekend with a $37726 valuation
The drop in value experienced by the two reigning cryptocurrencies of the crypto market is a reflection of a trend that has continued to take place over the past week as the market crash continues, with 14 of the top 15 crypto projects showing losses over the past 24 hours at the time of redaction.
Over the past days, the market capitalization of the crypto market has dropped to its lowest point since the end of February, going as low as $1.3 trillion after having surpassed the $2.5 trillion milestones during the first week of May.
The market has started seeing some recovery as of this morning though, so maybe the worst is behind us now?
What Is Causing the Crypto Crash?
Ethereum and Bitcoin have struggled to maintain the gains obtained over the past month after a rise in concerns about their environmental impact due to the use of a proof-of-work consensus algorithm, which is known to require high levels of computational powers that translate to energy requirements.
While Ethereum is planning to transition to proof-of-stake with the release of the Ethereum 2.0 update, this event is expected to occur later this year and has not been enough to dispel the concerns around the negative impact the network could have on the environment.
China’s approach to crypto also had a negative impact on the market last week when some of its financial regulators continued to enforce a ban of…