Ethereum is at $3,400 on Tuesday, August 31. It rose to almost 3,340 on August 23 but slipped to $3,050 on August 26, with a bug on software client Geth.
Ethereum Software Client Geth Hit by Bug
Ethereum, the best cryptocurrency to invest in, is the second-largest in the crypto market cap and provides the best Blockchain service. However, outdated software caused some trouble in the digital ledger last week. The chain split was due to a bug on its Geth software client. Geth, the open-source software, allows its clients to run nodes.
Ethereum older version of network client Geth was hit by the bug, leading to a split in its network. Users with v1.10.7 specifications faced the effects of the split from the main network. The transactions get overwritten by the chain, which may bring a double-spending attack. The Ethereum Blockchain got an error by the split chain.
The Block research states they have the address of the bug, which had support from a Tornado Cash client. The same address exploited the Binance Smart Chain and Huobi ECO Chain. However, it did not exploit Polygon. There was no detailed disclosure of the attack. However, it is a high-risk security issue, say officials.
Core developers stated that a patch-up done to rectify the fix would help those with upgrades. The developers laid stress on the urgency for making the upgrade on their software to the latest version.
However, crypto exchanges did not suspend ETH deposits or withdrawals. The recent chain split gives rise to other exploits in NFTs and DeFi functioning, say experts.
Weakness in the Crypto Market
There is a potential weakness in the crypto market. Just weeks ago, PolyNetwork suffered a $610 million hack, the biggest in DeFi. Though they recovered most of the funds, the setback reflects the defects in the digital assets.
The crypto market saw a drastic drop in prices in June 2021. It went into a roller-coaster ride, as stiff regulations brought havoc on the crypto prices. Tweets from Tesla CEO Musk citing environmental concerns over the power usage for crypto mining brought down prices. Regulatory action from various countries like China and the UK brought a massive dip in digital currency prices. China brought in a severe crackdown on crypto mining in its country. Britain took stringent actions against the top crypto exchange Binance. The FCA states that the crypto exchange did not meet its anti-money laundering requirements. Australia took a tough stance against crypto transactions, though it did not bring an outright ban.
The total crypto market cap was at the $2.06 trillion marks, with a slight decline. The crypto market volume rose 20% to $107 billion.
Bitcoin cryptocurrency prices continue to trade below the $50,000 mark from July 2020. BTC trading at cryptocurrency prices of $47,750 has to move past the key resistance level to get a positive trajectory. Bitcoin’s (BTC) market cap is at $1.98 trillion.
Ether, the second-largest crypto in market cap is trading at $3,410 on Tuesday. It saw a bounce from the lows at $3,000 when experts located a bug in its Geth software. The overall market capital of Ethereum is at $2.14 trillion. Ethereum burnt about 136,000 ether which is worth almost $430 million.
Cardano has become the third-largest digital asset, pushing Binance Coin to the fourth spot. It has risen from 1.35 in the first week of August to $2.7820 on the last day of the month. The low-priced Cardano ADA attracts new users into the crypto block.
Digital Asset Investment
There are other lesser-known crypto assets in the cryptocurrency list like Solano and Avalance crypto tokens. New users who consider what cryptocurrency to invest in prefer those that need low investment.
Solana has risen almost 170% in the past 30 days. In August, SOL/USD shot up from $34.00 to $93.80 levels.
The value of Avalance (AVAX) with crypto prices at 42.00 has gone up from $11.80 to $56 in August. Its prices shot up almost five times in 30 days.
Investing in cryptocurrency Dogecoin, the meme-based token, requires less investment. It gained much popularity from memes by the Tesla CEO, Elon Musk. Dogecoin (DOGE) is trading at 0.2765 on Tuesday, August 31.
The crypto investors are moving from the top cryptocurrencies to the newer coins. There is a rising frenzy in new cryptocurrencies, with lower prices as they are considered the best cryptocurrency to invest in 2021. New users prefer the new coins as they require very little investment, though price fluctuations are large. They come with ultra-low rates that investors can afford.
The pandemic brought in various stimulus measures from the central governments across the globe. People have plenty of money to spare and prefer the crypto world to other investments, especially as interest rates are almost non-existent. Low-priced digital assets like Cardano, Dogecoin, and Avalance have shot up in recent months. The younger generation which seeks better returns on investments is looking into the crypto space for exorbitant profits.
The US equity market is trading at new highs amid high inflation in the economy. Prices of leading cryptocurrencies like Bitcoin are dropping lower.