The total crypto market cap fell below $1 trillion today.
- Crypto prices fell dramatically today, with Bitcoin reaching an 18-month low.
- Ethereum and Solana both fell by around 20% in 24 hours.
- Higher-than-expected inflation figures and Celsius’s suspension of withdrawals were the main drivers.
Crypto prices were in free fall today as the market reacted to successive shockwaves of bad news. The total crypto market cap slipped below the $1 trillion mark. Given that it topped $3 trillion last November, that’s a significant pull back. Prices have recovered a little during the course of the day, but there’s a good chance today’s price drops will make it into the crypto history books.
At one point, Bitcoin (BTC) sank below $23,000, as its 18% drop in 24 hours took it to an 18-month low. Ethereum (ETH) and Solana (SOL) were hit even harder, with both registering drops of around 20%. Cardano (ADA) fared somewhat better, falling around 15%, according to CoinGecko data.
Why crypto prices fell so dramatically
The best way to understand today’s crypto collapse is to think of a snowball gaining weight and momentum as it speeds downward. First of all, higher-than-expected inflation figures sent shockwaves through crypto and stock markets. Then, popular decentralized finance (DeFi) lending platform Celsius announced it would pause withdrawals on the platform. In addition, Binance temporarily halted certain Bitcoin withdrawals for technical reasons, and the head of the Bank of England reiterated his view that crypto investors could lose all their money.
Rising inflation figures
The consumer price index (CPI) for May was up 8.6% year on year — higher than many economists had hoped. This squashed hopes that the Federal Reserve’s economic tightening measures had already started to reduce inflation. Analysts had already expected another rate hike of 0.5% this month. Now there’s talk of a 0.75% rise — and the potential that the Fed’s hawkish stance will last even longer.
The Fed’s priority is to get spiraling prices under control and rate hikes are one of the various tools it has at its disposal. All of its measures essentially mean there’s less money available — contributing to a risk-averse environment. Added to which, it’s becoming less and less likely that the Fed can curb inflation without sparking a recession. This uncertainty also has an impact on prices.
Celsius news fuels DeFi fears
Following the collapse of the Terra (LUNA) ecosystem, there’s growing skepticism about crypto platforms that promise extraordinary rates of return. This has intensified today as another lending platform announced it was halting withdrawals due to “extreme market conditions.”
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Celsius said it would meet its obligations and honor its withdrawal obligations given time. However, there’s speculation about the platform’s ability to keep its promise. It doesn’t help that competitor Nexo referred to “what appears to be the insolvency” in a Twitter thread offering to buy some of Celsius’s assets. Not only is the Celsius news worrying, but it raises wider questions about the entire decentralized finance system.
What it means for investors
These kinds of losses are difficult for any investor to stomach, especially on the back of six months of dwindling value. If you bought crypto for the first time last year, it’s very likely your portfolio is worth less than you invested — in some cases dramatically so.
The big challenge is that prices could still fall further as we are now in a very different economic climate. In 2020 and 2021, there was a lot of pandemic-related economic stimulus money sloshing around. Now we’re facing dramatic increases in living costs, fears of a recession, and a pull back from high-risk assets.
In the long term, Bitcoin may recover and go on to reach new highs. It has always done so before, though it has a relatively limited price history, and many analysts remain optimistic about its potential. However, there are still a lot of unknowns, and the whole industry has several significant hurdles to cross. For example, we know that increased regulation is in the cards, but we don’t know how strict it will be.
The Celsius story also illustrates another potential issue. If prices stay low for a long period of time, there’s a chance other crypto platforms will fail. Savings accounts are covered by FDIC insurance against bank failure. In contrast, there isn’t a lot of protection for crypto investors if a crypto exchange or DeFi platform collapses.
Every time investors dare to hope the worst is over, crypto shows it can still fall further. Many investors may be tempted to cut their losses and sell now — which is understandable. But if you sell today, you’ll lock in your losses. You won’t be able to benefit from any potential price increases.
It is almost impossible to know what might happen next. This is a high-risk asset class, and there are no guarantees. However, if you are able to keep a long-term perspective and only invest money you can afford to lose, you may be able to wait out this extremely difficult time.
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PrivaCrip to Power a Blockchain Network That Could Follow Cardano & XRP
When the first decentralised blockchain was popularised in 2008 by Satoshi Nakamoto, the door was open for people across the globe to transact more securely and seamlessly. Many blockchain networks have been built and powered by native crypto tokens, including PrivaCrip (PRCR).
Native tokens exist for several reasons. Aside from acting as digital currencies, they perform various functions. Helping blockchains improve data traceability, security, transparency, and trustworthiness shared throughout the network. They also assist in reducing costs through their ever-evolving efficient methods.
Cardano (ADA) and Ripple (XRP) are among the best blockchain-based cryptos that this article will discuss. We will also look at how PrivaCrip (PRCR) will power a blockchain network set to launch into the crypto space.
Top Tier Crypto Makes its Mark – Cardano (ADA)
Cardano (ADA) has been around in the crypto space since 2017. The Proof-of-Stake (PoS), Ouroborous Cardano (ADA), was established using a research-based methodology.
Research is the backbone of Cardano (ADA) and is integral to its success in the cryptocurrency market. Cardano (ADA) uses an evidence-driven mechanism and peer-reviewed research to run its ecosystem to drive its evolution.
Among many things, Cardano (ADA) helps establish DeFi products and provides a suite of financial solutions. Crypto enthusiasts can stake Cardano (ADA) for a chance to earn rewards for their holdings.
With 2022 providing challenges in cryptocurrencies across the globe, Cardano (ADA) is one of the few cryptos to see a surge in on-chain trading volume this year. CoinMarketCap lists Cardano (ADA) as the 7th largest crypto by market capitalization at the time of writing.
Making Waves – Ripple (XRP)
Launched in 2012, Ripple (XRP) is a leading provider of crypto solutions for businesses. Ripple (XRP) provides developers with a solid open-source foundation for executing demanding projects. It is fast, energy-efficient, cost-effective, and reliable.
The solutions provided by Ripple (XRP) enable developers to solve inefficiencies, including asset tokenization and remittance. Therefore, individuals and businesses may apply Ripple (XRP) for DeFi, payments, tokenization, and more.
Crypto enthusiasts with a long-term focus may find Ripple (XRP) a valuable investing tool. Token holders can use Ripple (XRP) for staking its mainnet platform for a chance to grow their earnings and maximise profit.
The New Face Of Privacy – PrivaCrip (PRCR)
The soon-to-launch PrivaCrip (PRCR) is a cryptocurrency built for Web3 data privacy. It will allow users to develop and use permissionless and privacy-preserving applications. This unique feature of PrivaCrip (PRCR) secures apps, protects users, and fosters the creation of many new Web3 uses.
PrivaCrip (PRCR) will drive a blockchain that creates a more empowering and inclusive internet. It will enable developers to build secure dApps using private contracts based on original privacy research (OPR) to revolutionise Web3.
PrivaCrip (PRCR) will begin pre-sale soon and has an initial token price of 0.10 USD. According to the whitepaper, there will be a total supply of 190 million tokens, of which 40% of the total supply will go to the pre-sale.
Crypto enthusiasts who purchase PrivaCrip (PRCR) during the pre-sale will receive the most significant long-term rewards and bonuses. Those who buy with Bitcoin (BTC) will receive a 10% bonus. Also, those using Ethereum (ETH) to purchase will receive 15% of the total PrivaCrip (PRCR) they purchase as a bonus.
10% of PrivaCrip’s (PRCR) total supply is up for distribution as staking rewards, meaning that token holders who stake will receive rewards for their contribution to the crypto’s advancement.
Blockchain networks are continuously evolving, and so are the crypto tokens that power them. Cardano (ADA) and Ripple (XRP) have contributed tremendously to the success of their blockchain networks, gathering mass appeal.
PrivaCrip (PRCR), for its part, will drive a security-enabled blockchain and scalability in private DeFi, empower data tokenization, and bring together a fast-growing community. Acting on its promise, it has the potential to become the next big mover in cryptocurrency.
For more on PrivaCrip (PRCR), check below:
Cardano (ADA) Withdrawal Fees Waved by Bitrue Exchange
Singapore-based cryptocurrency exchange made Cardano one of its base trading pairs earlier this year
Singapore-based cryptocurrency exchange Bitrue announced that it had temporarily waived withdrawal fees for the Cardano (ADA) cryptocurrency.
The trading platform says that the move is meant to celebrate the support it received from the community behind the cryptocurrency.
Users will be able to withdraw ADA without paying any fees until mid-September.
Bitrue has stressed that it wants users to have “as much choice as possible” when it comes to custody options. Those who want to hold their ADA tokens will not be able to do so without paying an additional commission.
At the same time, Bitrue has touted its “Power Piggy” yield-farm investment program for those who want to earn passive income with ADA.
As reported by U.Today, Bitrue introduced the token as its base currency back in February.
In June 2021, it also became the first cryptocurrency trading platform to add support for Cardano-based native tokens.
Last month, Bitrue also announced a staking initiative with the ADA cryptocurrency. It decided to contribute a million tokens to some of the top Cardano staking pools in an effort to boost the level of decentralization.
Earlier this year, SundaeSwap (SUNDAE), the native token of the SundaeSwap exchange, also became available on Bitrue.
WingRiders Losses 59% Of Its Total Value Locked, Plunges Cardano TVL Below $100M
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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