Ethereum, ETH down 3% after losing $30B

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Ethereum, ETH down 3% after losing $30B

U.S. Central Bank Telegraphs: One More interest rate hike in 2023.

The Federal Reserve has said a rate hike may happen this year, despite a decision to keep interest rates steady on Wednesday.

The central bank's projections show a rise in annual rates from 5.25% to 5.5%, the highest in five years in a row. The proposed hike received support from 12 Fed officials and 9.2 percent of the opposition.

CoinMarketCap notes that $30B was wiped out from the combined capitalization of crypto assets, which now sits at $1.05T following the 3% retraction. The value of BTC has dropped 2.6 percent, and ETH is down 3% after both assets regained 1% in the past 24 hours.

September's closing will also coincide with the expiry of $3B worth of quarterly BTC options and $1.8B in contracts tracking Ether.

The Defiant told The Defiant that quarterly contracts are typically the most significant in terms of volume and value, estimating institutions represent 85% of activity.

Strijers said that he does not expect to see strong market moves in the coming week based on the current positioning of market participants.

The month of September has been the weakest for Ethereum's on-chain activity this year.

According to Ultra Sound Money, more than 13,000 ETH has been added to Ether's supply since the month began, meaning Ethereum's burn mechanism didn't offset new ETH entering supply as rewards for validators.

The NFT market's decline has been attributed to the long-standing decline in the market and the buzz surrounding memecoins dying down.

The retraction in on-chain also occurs with Layer 2 transaction throughput setting new highs multiple times in recent weeks. On Sept. 14, Ethereum's L2 ecosystem processing an average of 64.2 transactions per second, compared to 12.4 TPS on the Ethereum mainnet.