Independent Crypto Data Scientist Study: ETH Price Drop Makes It Easier to Attack the Network
The past few days have not been very kind on the crypto market— with almost all of the top-10 altcoins facing a lot of bearish pressure causing their prices to drop quite dramatically. How this latest fall affects the industry at large remains to be seen, however, according to some independent researchers, Ether’s ongoing woes make the currency’s native ecosystem more and more susceptible to “third-party attacks”.
A Closer Look At Ethereum’s Financial Status
As many of our readers already know, anytime the value of Bitcoin falls, a host of other premier assets tend to follow suit. Ethereum is no different in this regard, as the world’s second largest crypto coin (by total market capitalization) has been losing value in quick succession over the past few days— primary due to its delayed Constantinople hard fork.
To elaborate further on the matter, we can see that over the course of the past 24 hours, the loss being experienced by the ETH/BTC pair is around 0.6%, while its USD ratio has just dropped by another 4.7%. Due to all of this turmoil, it now appears as though the digital asset will no longer be able to hold on to its current price range of around $120 and will most likely slip to the $115 region.
ETH Network Is Currently Exposed To Potential Attackers
At this point in the article, it should be noted that social media platforms such as Twitter have recently been abuzz with rumors surrounding the possibility of third-party attacks taking place on the Ether network (owing to the asset’s ever dropping prices).
This assertion has been confirmed by Thomas Pepperz, who is of the belief that it is no longer that expensive to perform an attack against the Ethereum network. However, he maintains that keeping such an attack up for over an hour is still quite a costly proposition.
Here are the hourly attack cost rate for #Ethereum for the last three hours: $86.9K, $81.K, $80.1K.
Currently studying the relationship between #market cap, trade value, network activity, & the attack cost of diff sets of #cryptocurrency. #BTC #ETH #ethereum #cryptotrading pic.twitter.com/BbSEhkJNhS
— Thomas A. Pepperz (@ThomasPepperz) January 20, 2019
In closing, it is worth pointing out that in the recent past, the number of active Ethereum wallets have declined by quite a significant number. Not only that, even the total ETH transaction volume has dipped over the past year — despite the fact that there has been an increase in the number of overall transfers taking place within the currency’s native network.
With that being said, it is still not clear how long Ethereum’s latest financial drought will continue. However, one thing is for sure that the coming few weeks and months promise to be quite an action-packed for the premier altcoin.