As we reported on Wednesday and again on Friday, the bear market that started in early January is showing no signs of slowing or ending – and it’s dragging down some of the biggest and most promising crypto projects, like Ripple and IOTA.
It may have been a wild ride, but this week’s cryptocurrency bloodbath makes it clear that the long-awaited bull run hasn’t arrived. There are a number of catalysts pushing the market lower, but the most obvious is the sudden sell-off in Bitcoin, which follows a slew of regulatory developments at both the state and federal level. The market may be trending lower, but the bearish sentiment isn’t likely to last.
As of Friday, total market capitalization for all cryptocurrencies including bitcoin had plummeted to $205 billion, down from a record high of around $430 billion in December.
Markets have been dropping over the last 24 hours, with Polkadot (down 9%), Dogecoin (down 8%), Binance Coin (6%), and Cardano leading the way (down 4 percent). Cryptography’s total market value has dropped by approximately $90 billion since yesterday (4 percent).
The top ten coins and tokens are all red, suggesting that market movement cannot be dependent on a single coin or token’s growth. In financial terms, it is just a short-term market correction. Last month, most of the major cryptocurrencies saw double-digit percentage gains.
The markets seem to be much more bullish than they have been throughout August. Cardano expects a price increase of 121 percent from July 25 for its smart contract deployment on September 12th. Dogecoin has recovered almost 50% in the last month. Immediately stating that the Dogecoin Foundation was responsible for bringing the band back together. With the help of Vitalik Buterin and Jared Birchall, Elon Musk’s advisor.
The Ascension of Solana
Solana is also seeing success with its DeFi solutions, which are decentralized financing applications. For transactions like as loans and asset swaps, this eliminates the need for middlemen. Solana DeFi technologies are presently circulating over $2 billion in funds. And the SOL token has hit an all-time high of $80 this week.
However, Bitcoin and Ethereum, the crypto-reserve currencies, account for the majority of market activity. In only three months, the former earned $50,000. This week, long-term investors are continuing to wait and restrict supply. Transaction counts and volumes have recently been sluggish, according to Glassnode.
In the case of Ethereum, the increasing demand for NFTs – which are based on blockchain and represent ownership of digital commodities like art, collectibles, and, uh, rocks – has been enhanced. It was a great day for non-fungible tokens yesterday, after a month of heavy selling. OpenSea, an NFT marketplace, set a new 24-hour sales record of $195 million. The prior day’s total was $90 million.