Can Ethereum recover from its recent market decline?

Ethereum (ETH), the second most successful blockchain network, has experienced a substantial decline in value over the first seven days of June.

There are approximately 18,000 cryptocurrencies believed to exist, giving individuals a wide range of blockchain possibilities. According to an article released by explodingtopics.com in 2021, there are around 106 million individuals worldwide who invest in cryptocurrencies.

These figures paint a clear picture of how cryptocurrencies will continue to increase in popularity, eventually approaching the beginning of the metaverse and web 3.0.

With blockchain veteran Ethereum having dramatically decreased over the last several days, does it have the capability to recover?

The recent crash of Ethereum 

Despite it being one of the best cryptocurrencies in the market, ETH has suffered a significant decline this month. The market cap for ETH has dropped by 20.10% since May 2022 and within the past 24 hours, the currency’s value has dropped by 10.10% according to coincapmarket.com.

This comes from what experts are calling a ‘crash’ in the crypto market, which is seemingly hurting the more popular cryptocurrencies.

But the negative news for Ethereum doesn't stop there. It has lost more than half of its value since the beginning of 2022, with the reduction occurring steadily over time.

The ETH currency launched in July 2015 and quickly rose to popularity through pioneering the concept of smart contracts in blockchain technology.

Smart contracts refer to virtual contracts that automatically fulfil a reasonable agreement between multiple people online. Its goal is to eliminate the requirement for a third party when dealing financial assets online.

ETH's value has reached its lowest point since July 2021. Despite its recent decline, it remains the second most popular cryptocurrency behind Bitcoin (₿).