According to U.Today, Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a significant increase in its valuation. Data from Glassnode reveals that Ethereum's market cap has surged by $354 billion, or 267%, since November 2022. This information is part of a report titled 'Digital Assets: Insights and Market Trends,' jointly published by CME Group and Glassnode, which provides a comprehensive overview of the digital asset landscape.
The report highlights that Ethereum currently has a market capitalization of $451 billion. The overall altcoin ecosystem, which includes Ethereum, has a total market capitalization of $611 billion. Ethereum remains the leading asset in the altcoin sector, accounting for 41.7% of the market. The report also notes that validators have staked 32.2 million ETH as collateral, representing approximately 27% of the circulating ETH supply. The quantity of ETH staked has generally increased over time, with only a few instances of decline.
The transition to a proof-of-stake consensus mechanism, known as The Merge, was completed in September 2022. This shift, along with the EIP1559 burn mechanism, has resulted in a reduction of the ETH supply by 343,000 ETH since The Merge. The report also provides insights into Ethereum's market performance following the Bitcoin halving event. In the 365 days after the halving, Ethereum's market performance has been more diverse, with significant fluctuations in its price. The 2016 cycle saw a 45% decline before a 3,400% increase, while the 2020 cycle saw the price more than double in the immediate months after, continuing to climb by 2,150%.
Ethereum's drawdown profile has experienced deeper corrections compared to Bitcoin. The largest loss in the 2022-2024 cycle so far has been 42%, with previous cycles witnessing corrections greater than 65% during both the early and late stages of macro bull markets.