The short-lived uptrend at the start of the week saw the total crypto market capitalization rise to a weekly high of $1.977 trillion, as per TradingView data. This figure has since been on a decline, falling as low as $1.802 trillion during yesterday’s trading session. Crypto assets are trading even much lower today, as evidenced by the global market capital, which has shrunk by roughly 4.55% in the last 24 hours.
Bitcoin, the flagship cryptocurrency, has plunged a whole 7.10% on the day to $40,740 as of writing. The second-largest cryptocurrency, Ethereum, hasn’t been spared either. The token has fallen below $3,000 after recording a 6.36% dip in the last 24 hours. The premier altcoin is currently changing hands at $2,915, according to data from CoinMarketCap. The picture is much the same in the rest of the altcoins market.
SOL/USD
Solana’s native token crossed $100 on Monday before further gains propelled it towards last week’s high of $107.85.
SOL/USD 7-day trading chart. Source: CoinMarketCap
The token, however, suffered rejection around $104 on two occasions. SOL is now trading at $95.81 against the dollar, having shed about 2.70% over the past 24 hours. Overall, SOL/USD has lost approximately 9% since last Friday.
To learn more about this token visit our Investing in Solana guide.
MATIC/USD
MATIC, the native token on the Polygon network, lost support at $1.80 and has slid lower to $1.71. In the last 24 hours, its price has fallen by 4.70%, bringing the weekly losses to almost 8%.
To learn more about this token visit our Investing in Polygon guide.
AVAX/USD
Avalanche sits ninth in market capital rankings. Its native cryptocurrency AVAX set a six-week high of $98.57 yesterday. The AVAX token is, at press time, trading marginally below $90 following a spirited bounce from $86.68 earlier today.
AVAX/USD 7-day trading chart. Source: CoinMarketCap
The token’s 4.06% drop in the last 24 hours has seen its market capital fall below $22 billion. Although the market sell-off has wiped away double-digit gains accrued at the start of the week, AVAX is trading 0.85% lower than its price figure a week ago.
To learn more about this token visit our Investing in Avalanche guide.
LUNA/USD
Terra’s LUNA steadily surged towards $60 this week, but its upward momentum got thwarted at $58.18 on Wednesday. Market data shows the coin is the hardest hit among the top ten crypto-assets by market cap. LUNA has posted the biggest red candle – down 7.60% in the last 24 hours. It is currently trading at $51.80 – 50% below its record high price.
To learn more about this token visit our Investing in Terra guide.
ADA/USD
Cardano’s coin is among the biggest losers in the market. ADA endured a tough January with February, so far, not being any better. The major announcements and significant developments from the Cardano network have failed to provide enough boost to keep the price of the coin floating.
ADA/USD 7-day trading chart. Source: CoinMarketCap
ADA is hanging at $1.04 after seeing 2.62% of losses in the last 24 hours. CoinMarketCap data shows that ADA/USD is down almost 10% over the last seven days. With market uncertainty still prevailing, the token may lose ground at this zone and drop even lower.
To learn more about this token visit our Investing in Cardano guide.
What is causing and fuelling the slump?
The cryptocurrency market is losing ground ahead of the weekend for the second consecutive week this month. Last week, top crypto assets posted red candles going into the weekend after rallying during the week. Industry experts contend that the latest display in the market is the upshot of several factors as opposed to a single trigger.
Analysts have ascribed the bearish wave to three main factors. These are heightened geopolitical tension between Ukraine and Russia, speculations around India’s stance on cryptocurrency in India, and increased scrutiny of the crypto sector in the US following the formation of a new FBI Crypto Crimes Unit.