Ethereum's Market Cap Plummets 36% Amidst FUD and Retail Sell-Off

Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a significant decline in recent weeks. According to market research firm Santiment, Ethereum's market cap has dropped by 36% from its local peak, leading to a sharp decrease in the number of profitable ETH tokens. The current profit ratio has hit a 4-month low, and the number of profitable tokens has also dropped to a 3-month low.

Ethereum's underperformance compared to other large-cap coins has contributed to a significant shift in market sentiment, with fear, uncertainty, and doubt (FUD) prevailing. Despite the ongoing retail sell-off, Santiment believes that Ethereum may experience an unexpected rebound once the cryptocurrency market stabilizes.

The recent decline in Ethereum's price has been accompanied by a decrease in the number of profitable ETH tokens. This trend has led to a significant drop in the profit ratio and the number of profitable tokens. The current market conditions have been characterized by a prevalence of fear, uncertainty, and doubt, as well as an ongoing retail sell-off.

Despite the current market conditions, Santiment remains optimistic about Ethereum's prospects. The firm believes that the cryptocurrency market will eventually stabilize, and Ethereum may experience an unexpected rebound. This rebound could be driven by a variety of factors, including increased adoption, technological advancements, and positive regulatory developments.