The crypto market cap stood at $1.58 trillion on Thursday after Russia ordered military action in Ukraine as against the $3 trillion mark scaled in November 2021.
In terms of value, the fall in the global crypto market-cap is higher than the GDP of countries like Australia, Spain, Saudi Arabia, South Korea, Mexico, Turkey, Netherlands and Indonesia.
The top digital assets such as Bitcoin and Ethereum have tumbled nearly 50 per cent from their peaks. That said, the pain in altcoins has been more severe, with leading digital tokens falling nearly 85 per cent from their highs. These include Shiba Inu, Dogecoin, XRP, Cardano, Polkadot, Solana among others.
“Crypto market began to fall since the start of this year, thanks to various reasons including new Covid variant, high inflation and geopolitical concerns. This led crypto investors to offload their portfolios,” said Edul Patel, CEO and Co-founder, Mudrex.
Adding to it, Sharat Chandra, VP- Research & Strategy, EarthID said the Biden administration is expected to come out with an executive order on crypto very soon. “There are fears about the un-hosted wallet rule put forward by the US Treasury to be a part of major legislative discussions.”
According to market experts, the corrective phase in crypto assets is always sharper than in equities.
“Equities are held on as a long-term investment plan while cryptocurrencies are volatile assets that can give you great profits,” Patel said. Hence, the losses in cryptos are steeper too, he added.
However, despite a sharp drop in prices, backers believe that one should try to buy crypto assets on dips once geopolitical worries ease down. They are bullish on major themes like Metaverse, DeFi, GameFi and more.
“Buying the dip is a good opportunity for the crypto enthusiasts and long-term buyers if invested wisely after a proper market research,” said Patel from Mudex who is bullish on themes such as Metaverse, NFT and the crypto blue chips.
Metaverse tokens, GameFi and blockchain-based gaming projects are worth watching out for, Chandra suggested. “Space crypto and Meta Gear in the play to earn segment are doing well,” he added, recommending SpaceCrypto and RainMaker in the GameFi category.